Deep-fry the paneer on low-medium heat until the paneer has a little golden- brown color. Set aside.
Blend tomatoes, green chilly and ginger to make a puree.
Heat the oil in a saucepan. Test the heat by adding one cumin seed to oil; if seed cracks right away oil is ready. Add hing and cumin seeds.
After the cumin seeds crack, add the tomato puree, coriander powder, turmeric, red chili powder and bay leaves. Cook for about 4 minutes on medium heat. Tomato mixture will start to leave the oil and will reduce to about half in quantity.
Add the whipped yogurt into the gravy. Stir occasionally for about 3 minutes on medium heat.
To thicken the gravy, dissolve the cornstarch in 3 tablespoons of water and add to the gravy.
Add the green peas and paneer. Let it cook for a few minutes until the peas are tender.
Add the garam masala and cilantro. Add a little sugar if the gravy is sour.