Select the high Sauté setting on the Instant Pot and heat the ghee. Add the onion, ginger, garlic, chile powder, salt, and turmeric and sauté until aromatic, about 1 minute. Add the tomato puree and water and stir to combine. Layer over the garam masala, but do not mix.
Secure the lid and set the Pressure Release to Sealing. Press the Cancel button to reset the cooking program, then select the Pressure Cook or Manual setting and set the cooking time for 8 minutes on high pressure.
Perform a quick release by moving the Pressure Release Valve to Venting. Open the pot and blend the sauce to a smooth consistency using an immersion blender. Stir in the paneer, cream, tomato paste, fenugreek leaves, and sugar. Select the high Sauté setting and cook until the curry comes to a gentle boil, about 5 minutes. Press the Cancel button to turn off the Instant Pot. Garnish with cilantro & serve.
To serve it as Paneer Makhani Naan Pizza: Preheat the oven to 400 degrees. Spread 3 to 4 tablespoons of makhani sauce on the naan, spread mozzarella cheese, and paneer cubes on top. Bake, grill or broil for 5 to 10 minutes or until the naan pizza comes out crisp.
There is no good substitute for fenugreek leaves. So if you don't have them, just skip
You can also use fresh tomatoes instead of tomato puree. Simply puree ripe tomatoes in a blender
Heavy cream can be substituted with unsweetened coconut cream or cashew cream. See my Dum aloo recipe to see how to make quick 5-minute homemade cashew cream
You can substitute ghee with any neutral oil or butter if you like
To make this dish vegan, use tofu instead of paneer and use the above ghee and cream substitutes
Do not pressure cook Paneer as it can make it chewy. Simply allow the paneer cubes to soak in the hot sauce for 5 to 10 mins