Add all the ingredients in the makhani gravy list to the cup of water and cook for 15 minutes on a medium flame until the onions and tomatoes are soft.
Allow the mixture to cool.
Blend the mixture into a smooth paste.
In the pan used to make the mixture, heat the butter and saute the bay leaf.
Add the makhani paste and stir well.
Add the red chili powder and saute on a low flame.
Continue sautéing the mixture for about twenty minutes until the butter begins to leave the sides of the mixture.
Add the green chilies, salt and water and stir well.
Cook this mixture for two minutes.
Pour in the honey and stir.
Stir in the paneer cubes and simmer for two minutes.
Then, add the cream, kasuri methi and garam masala, stir well asn remove the pan from the stove.
Garnish the paneer makhanwala with the cream and coriander leaves.