Rinse the inner pot with water and dry it with a napkin.
Select sauté on the instant pot and adjust to normal.
Add ghee or oil to the pot.
Add the dried bay leaf to the pot.
When the ghee or oil is hot add the onions.
When the onions turn golden in roughly 2 to 4 minutes add the ginger garlic paste and serrano pepper (green chili pepper). Stir and sauté for 30 seconds.
Then add the blended paste to the pot. Stir
Add ground coriander, cumin, garam masala, and cayenne pepper (red chili powder). Let the mixture sauté for one minute. Keep stirring occasionally.
Then add water, salt, and sugar. Sauté for another minute. Keep stirring. Add the chopped paneer and stir gently.
Make sure nothing is stuck to the bottom of the pot and scrape the bottom of the pot well.
Secure the lid on the pot and close the pressure-release valve.
Select manual and cook at high pressure for 2 minutes.
When cooking is complete, use quick pressure release to depressurize.
Open the lid.
Add the dried fenugreek leaves, heavy whipping cream and the grated paneer. Stir and mix well.
Cover with a lid and let it sit for 5 minutes.
Transfer in a serving bowl.