First, select sauté on the Instant Pot and adjust to normal. Next, add oil to the pot.
When the oil is hot, add in asafoetida, cumin seeds, cloves, bay leaf, black cardamom pods, green cardamom pods, and cinnamon stick. Stir and let it sauté for a few minutes until the cumin seeds splutter.
Then add in pureed tomato and it sauté for 4 minutes until the oil separates.
Then add Kashmiri chili powder, ground ginger, ground fennel, ground cumin, salt and give it a good stir.
Further, add in ½ cup water, and paneer. Additionally make sure the spices coat the paneer well without breaking the paneer. Press cancel.
Once all the ingredients are in, seal the pot and select manual/high pressure for 3 minutes.
Finally, when cooking is complete, use quick pressure release to depressurize. Transfer to a serving bowl, discard the bay leaf and serve over steamed rice or with naan/roti.