Chop potatoes to tiny cubes and leave them in water till used.
Heat oil in a pan,add cumin, bay leaf, let them splutter, add ginger garlic paste. Fry till you get a nice aroma
Add potatoes and turmeric, fry for 2 to 3 mins. Cover and cook them till soft and tender, if needed sprinkle water and cook.potatoes must be fully cooked
Add capsicum, paneer , salt, red chili pow, garam masala. Fry for about a minutes. cover and cook for just one to two minutes for every thing to blend well.
Transfer to a serving bowl immediately to retain the softness of aloo paneer.
You can use amchur and kasuri methi if you desire for flavoring
To make a semi dry or gravy version, you can makhani masala or coconut milk or tomato puree.
If using coconut milk it must be added at the end, otherwise the gravy looks curdled.