Heat oil and butter in large skillet or wok. Add bay leaves and simmer for a minute or so until the oil becomes fragrant. Discard bay leaves.
Add ginger-garlic paste and red chili powder. Stir well. Add the tomato puree and saute on medium heat, stirring frequently.
Add cashew paste and stir thoroughly. Add coconut milk, stir and simmer over medium heat.
Add julienned ginger, green chili, salt, garam masala, dry fenugreek leaves and salt and stir. Continue to simmer for about 10 minutes.
Add the tofu, stir and cook until well-heated. Add corn starch and stir just until sauce starts to thicken.
Garnish with cilantro. Serve over a bed of steamed basmati rice with plain or garlic naan.