Cut the Paneer into cubes.
In a pan add oil or ghee and shallow fry the paneer lightly until golden brown.
In the same pan, add 1 tbsp oil. Add in the bay leaves, and nigella seeds and cook for 30-40 seconds.
Add ginger and fry them on low for 30-40 seconds.
Add green peas and saute for 2-3 minutes on low.
Add turmeric and chili powder and cook for another minute or so.
Now add milk, water and salt.
Increase the heat and bring the mix to boil.
Reduce, add the paneer and simmer until the gravy thickens. 10-15 mins approximately.
Enjoy with Rice or some phulkas.