Select sauté on the instant pot and adjust to normal. Next, add oil to the pot.
When the oil is hot add in potatoes to the pot and let them sauté for 5 minutes until they brown. Keep turning them every 2 minutes to make sure they don’t stick to the pot.
After 5 minutes are up, add in paneer. Further, move the potatoes to the side in the pot and add in cloves, green cardamom pods, cinnamon stick, cumin seeds, and black cardamom pod.
Quickly add in 3/4 cup water, ground turmeric, ground ginger, ground fennel, ground cumin, salt, garam masala and stir gently, without breaking the potatoes or the paneer.
Close the lid and select manual/high pressure for 3 minutes. When cooking is complete, quick release the pressure and open the lid.
Further, add in milk and stir well. Select sauté and let the milk come to a boil and press cancel. Finally, transfer the cooked dish in a serving bowl, granish with serrano pepper and serve over steamed rice.