Once the whey and milk solids separate, strain it through a muslin cloth, reserving the whey for something else. Then wash the chenna to remove the sourness from it. Rest for 30 minutes, squeezing out excess water.

Transfer the chenna to a flat surface and knead firmly for 7-8 minutes until the mixture is smooth, soft, and dough-like with no graininess. Divide into approximately 14 small equal portions and roll into smooth, crack-free balls. Bring a wide pot of water to a boil. Drop the chenna balls in carefully, cover, and boil for 7-8 minutes. They will puff up. Remove and transfer immediately to a bowl of hot salted water and soak for 20 minutes.

While the rasgullas soak, prepare the gravy components: soak the 2 tbsp cashews and 1 tbsp khuskhus together in warm water for 10-15 minutes. Drain and grind to a smooth, thick paste. Keep aside. Separately, prepare the boiled onion paste and boiled tomato paste if not done already.

Squeeze the hot salted water gently from each rasgulla. Heat 1 tsp butter in a non-stick pan over medium heat. Add the rasgullas and pan-fry, turning occasionally, until they develop a light golden colour on the surface. Remove and keep aside. This step adds a slight crust that helps the rasgullas hold up in the gravy without going mushy.

Heat the oil and butter together in a wide pan over medium heat. Add the cumin seeds, bay leaf, cinnamon stick, and any whole red chillies. Sauté for a minute until fragrant. Add the boiled onion paste and cook for 2-3 minutes. Add the ginger paste and garlic paste and cook for another minute. Add the tomato paste, stir well, and cook until the mixture thickens and oil begins to separate at the sides.

Add turmeric powder, red chilli powder, coriander powder, cumin powder, and garam masala. Mix thoroughly and cook for 2 minutes. Add the soaked cashew-poppy seed paste and stir it into the masala. Cook for another 2-3 minutes, stirring continuously to prevent sticking, until the raw smell of the paste is gone.

In a separate pan, roast the halved cashews in a little butter until golden brown. Set aside. Pour milk (or cream) into the gravy and stir well. Cook for 5-7 minutes on medium heat until the gravy is smooth and rich. Crush kasuri methi between your palms and add to the pan. Mix and cook for 1 minute.

Gently add the pan-fried paneer rasgullas and most of the roasted cashews to the gravy. Mix carefully; do not break the rasgullas. Add water and let the sabzi simmer uncovered on medium heat for 5 minutes so the rasgullas absorb the gravy's flavour. Transfer to a serving bowl. Top with remaining roasted cashews and chopped fresh coriander. Serve immediately with roti, paratha, kulcha, or naan.