Make paste of tomato in mixer. Set aside.
Dry roast the gram flour over low heat till aromatic and golden. Keep aside.
Heat mustard oil in a kadhai till it starts smoking. Reduce the heat to low.
Fry the paneer cubes till they turn crisp and golden from both the sides. Transfer to a plate and set aside till required. This step is completely optional.
Add bay leaf and fry for a second.
Next add the chopped onion and cook till onion are golden brown.
Add the ginger and garlic paste. Fry nicely for 3 - 5 minutes.
Now add the tomato paste. Fry till the masala starts leaving the sides of the pan. This might take 5 - 10 minutes.
Dissolve red chilli powder in two tablespoon of water and it to the masala.
Add turmeric powder, peas, roasted gram flour and coriander powder. Stir to combine.
Add approximately 1 Cup of water, cover the pan and allow the curry to simmer over low heat for 10 minutes.
Next, add the paneer cubes, garam masala, green chilli, salt and mix nicely.
Simmer the curry for few 5 more minutes or till it thickens.
Garnish dhaba style matar paneer with fresh coriander leaves.
Serve Dhaba Style Matar Paneer with naan or basmati rice.