Switch on the Instant Pot in saute mode. Once it's hot add the unsalted butter. Let it melt.
Now add the whole spices. I am adding Cumin seeds, cinnamon, clove, and Cardamom. Let them splutter.
Next, add the chopped onion and saute it until they are soft.
And then add the minced ginger garlic or ginger garlic paste and saute for a min so that the raw smell leaves.
Add the chopped tomato and saute it till they are soft.
Now add the spice powders. We are adding Kashmiri red chili powder for the lovely bright color. Along with that garam masala, Coriander powder, turmeric powder, and the required salt. Combine and cook for a few secs.
Next, add 1 cup of Water. Mix everything and deglaze the pot.
Add the cashew nuts and combine once and close the Instant Pot. Press the cancel button and then select the pressure cook mode. Set 8 mins in high pressure.
Once the cooking time is over do a quick release and open the Instant Pot.
Using an immersion blender blend everything into a creamy curry. If you do not have one, let the curry cool a bit you may transfer it to a blender and then blend it to a fine paste.
Now the Paneer Butter Masala base is ready. Switch on the Instant Pot back in saute mode. Add the sugar and combine well.
Cube the paneer and keep them soaked in warm water for 15 mins and now add the paneer into the Instant Pot. Cook for 1 min.
Now add the Fresh cream combine well and cook for a min and then switch off the Instant Pot.
Garnish with crushed dried Kasoori Methi ( Fenugreek Leaves )
Also, garnish with fresh Cilantro. Creamy Paneer Butter Masala is now ready in the Instant Pot.