Turn on SAUTE. Wait for the pot to get hot, takes about 30 seconds. Add butter or ghee, minced ginger and garlic, and saute for 30 seconds-1 minute to cook off the raw flavor. Cancel Saute.
Add water and deglaze any brown bits that may have stuck at the bottom. Add tomato puree and spices. Stir and lock the lid. Select Pressure Cook/Manual and cook for 4 minutes at high pressure, on sealing mode.
When cooking is complete, manually release the pressure by following your cooker directions (Quick Release). Open the lid after the pin drops.
Select Saute. Add paneer cubes, dried fenugreek leaves (Kasoori Methi), sugar and heavy whipping cream (or coconut milk) and stir. Simmer for 3-4 minutes, till paneer softens and sauce thickens to your liking.
Garnish with chopped cilantro and serve with cumin or spinach rice.
Tomatoes: Ripe tomatoes are critical to the taste of this recipe. If using fresh, use bright red 'ripe' tomatoes, preferably plum/Roma tomatoes. Alternatively, diced or crushed tomatoes work well too. I prefer them over tomato sauce, which tends to be more tart.
Paneer: If using frozen paneer, for best results, thaw it overnight in the fridge. For an authentic taste, it is important to simmer the sauce till the paneer softens.
Make it Vegan: You can make this recipe vegan by replacing butter with any clear oil, and heavy whipping cream with coconut cream. Instead of paneer, add cooked chickpeas or extra-firm tofu.
Kashmiri Red Chili powder: I add this Indian spice for its vibrant color and mild heat. If you cannot find it, substitute with equal amount of regular paprika.
To Freeze this dish, skip the heavy cream and cool completely. Transfer it to an airtight container and freeze for up to 4 weeks. To reuse, thaw it overnight in the refrigerator, bring it to a simmer on the stove or Instant Pot, add heavy whipping cream and simmer for 2-3 minutes.
Water adjustment: This recipe was tested in a 3qt and 6qt Instant Pot pressure cooker. If using an 8qt size pressure cooker, add 1 cup water. You may have to simmer for a few extra minutes towards the end to cook it off.
Note: The nutrition facts below are my estimates. If you are following any diet plan, I recommend cross-checking with your preferred nutrition calculator.