Slice the paneer into medium sized rectangular blocks. In a small bowl, add paneer, ground turmeric, red chilli powder, salt and some oil. Toss to mix well and keep aside.
Make the onion-tomato sauce
In a Dutch oven or a heavy bottomed pan, heat the oil over medium high heat.
Add the cumin seeds, bay leaf, cinnamon stick and slit green chillies to the hot oil. Give it a quick stir.
Add the diced onion to this and saute till the mixture starts to turn golden brown.
To the onion, add the crushed ginger and garlic and saute for a couple of minutes till the raw smell of garlic disappears.
Add the spice powder and salt and saute for a minute or so.
To this mixture, add pureed tomato and a little water from the washed out tomato puree in the blender jar. Add a tablespoon of besan (chickpea flour) to this. Mix well right away so as to not have clumps of besan.
Let this cook over medium heat for a few minutes. Meanwhile, heat a little oil in a saute pan and add the marinated paneer pieces to this. Let it fry up a little in the oil, flip to get it evenly fry on all sides or at least the two bigger sides.
Add this paneer to the Dutch oven with the onion tomato sauce. Taste check for salt and add some more if needed. Add a little heavy cream and garam masala and mix it all in.
Let it simmer on medium heat for another 2 mins to blend everything in and for the paneer to absorb the sauce into it.