Grind together all the ingredients under “Masala paste” without adding water into a smooth paste.
Now heat a pan and add oil/ghee. When the oil is hot add the bay leaf and the masala paste. On medium heat stirring occasionally let the masala cook. Once the raw smell disappears and oil starts to separate add in red chilli powder, coriander powder, cumin powder and turmeric. Mix well and saute this for 2 to 3 minutes.
Now add some water( approximately 1 cup or as needed. You can add more or less as per your preference). Bring it to a boil then add the boiled green peas and salt and cook it for a minute or two.
Add the paneer cubes, fresh cream, garam masala powder and stir and let it cook for just a minute.
Garnish the hot matar paneer with freshly chopped coriander leaves and roasted jeera/cumin powder and serve hot with roti, naan or rice.