Wash and soak the rice for 15 minutes. Drain the water. Now add a tsp of ghee or oil in a pan and roast the rice for 2 minutes. Keep it aside.
Now add another tsp of oil and fry the paneer cubes till golden brown. Keep the fried paneer soaked in hot water. Soaking paneer in hot water keeps the paneer soft. Now fry the onions and potatoes separately and keep it aside.
Add another tsp of oil and fry the cinnamon, cloves, elaichi and bay leaf for a minute. Then add cumin seeds and peas and fry for another 2 minutes. Then add 2 cups of water, salt and red chili powder. As soon as the water starts to boil add the rice, potatoes and half of the paneer cubes.