Soak saffron in 1 tablespoon of milk and set aside.
Heat ghee in a heavy bottom pan. Add the chopped onion, ginger, garlic, red chilli, cashews and fry till onion starts turning brown.
Next, add chopped tomato, puree, spices, salt and fry till tomatoes are mushy. Once the oil starts separating from the masala add 1 Cup water. Stir and cover the pan with a lid. Simmer for 3 - 5 minutes. Turn off the heat.
Grind the masala to a smooth paste in blender.
Once again, heat the same pan. Using a seive filter the masala paste for a smooth gravy. Discard the thick residue left in the seive.
Add fried kofta balls, kasuri methis, cream, and stir to mix. Cover the pan with a lid and simmer the gravy over low heat for 5 - 6 minutes. Adjust the consistency of gravy by using water/milk if it seems too thick.
Once you are ready to serve, add soaked saffron and fresh coriander. Stir gently to combine. Turn off the heat.
Serve Paneer Kofta with naan or lachha paratha.