Heat 2 tsp oil in a pan. Add bell pepper and saute at medium heat till slightly golden color. Remove from the heat and keep it aside.
Heat 3 tbsp oil in a kadhai, add cumin seeds, whole red chilies, bay leaves, wait till its start crackling. Add onion, little salt and ginger-garlic paste, saute for 6-8 min at medium heat till onion gets slightly golden color. Add chopped tomatoes and tomato puree in to it. Cook until tomato gets mushy.
Add cashew nut paste, turmeric powder, crushed coriander seed, fennel seeds, red chili powder, coriander & cumin powder, pepper powder, saute it for 2-3 minutes at medium heat till masala gets fried nicely.
Add paneer, roasted bell pepper, kasoori methi, honey and garam masala powder, saute it for 2 minutes.
Add 1 cup water and stir it well. Cover and cook it for another 5 minutes at low to medium heat.
Kadhai paneer is ready to be served. Garnish with chopped coriander leaves. Serve it hot with naan, paratha or rice.