Set a cookie sheet lined with paper towels close at hand.

1. Cut the paneer block into ½-inch slices and the cut them into thirds.
   
   
2. Heat the oil in a heavy-bottomed frying pan over medium-high heat until it sizzles.
   
   
3. Fry the paneer until light golden on both sides, adjusting the heat as needed. Be careful not to overcook. Remove the paneer and place it on the paper towel-lined cookie sheet. Blot off excess grease. Set aside.
   
   
4. Reheat the skillet and add some additional oil. Fry the onions until golden brown.
   
   
5. Add the ginger, mix well, and cook for two minutes.
   
   
6. Stir in the garlic and green chili and cook for one minute.
   
   
7. Add the black cardamom pod, cloves, bay leaf, turmeric, chili powder, coriander, and cumin and cook for 30 seconds.
   
   
8. Add half of the tomatoes, mix well, and cook for one minute.
   
   
9. Add the remaining tomatoes and cook for one minute more.
   
   
10. Add the yogurt, sugar, salt, and pepper and stir to combine.
    
    
11. Pour in one half cup of water and mix well.
    
    
12. Add the paneer and stir gently to coat each piece with the sauce.
    
13. Bring to a lively simmer, then reduce the heat to medium-low. Cook for 15 minutes, stirring occasionally to prevent sticking. Thin with the remaining water if needed and adjust the seasonings before serving.