firstly, in a large kadai heat 1 tbsp butter and saute 1 bay leaf, ½ tsp turmeric, ¾ tsp chilli powder, 1 tsp coriander powder and ¼ tsp cumin powder.
saute until the spices turn aromatic.
now add in prepared onion tomato puree, 1 tsp salt and mix well.
cover and cook for 5-10 minutes or until the puree thickens.
further, add 2 tbsp curd and mix well until everything is well combined.
stir and cook until the oil is separated from sides.
add in ¾ cup water and mix well adjusting consistency as required.
now add in fried paneer, capsicum and onion. mix well.
cover and simmer for 3 minutes or until the flavours are absorbed well.
additionally, add 2 tbsp coriander and 1 tsp kasuri methi. mix well.
finally, enjoy shimla mirch paneer with phulka or naan.