Heat 1/4 cup of oil in a pan and add 2 teaspoons of cumin seeds and 2 bay leaves.
Once the seeds begin to splutter, add 1 cup of grated onion, 1 teaspoon of garlic paste, and 1 teaspoon of ginger paste.
Sauté the mixture until it turns brown and the fat separates.
Add 1/2 cup of hung curd, 1/2 teaspoon of turmeric, 1 tablespoon of salt, 1/2 teaspoon of garam masala, 1/2 teaspoon of powdered red pepper, and 1 tablespoon of powdered coriander seeds.
Stir-fry the mixture until the fat separates again.
Add 2 cups of cubed paneer and 3-4 green chilies to the pan.
Sauté the mixture over high heat until well mixed.
Serve hot, garnished with 1 tablespoon of chopped coriander leaves.