Prepare and marinate paneer: Cut 400g paneer into cubes. Mix with half cup yogurt, 1 tsp red chilli powder, half tsp turmeric, 1 tsp biryani masala and salt. Marinate 30 minutes.
Pan fry paneer: Fry marinated paneer cubes in 1 tbsp oil 2 minutes per side until golden. Remove.
Fry onions: Slice 2 large onions. Fry in 3 tbsp oil until golden brown. Drain on paper.
Parboil basmati rice: Wash 2 cups basmati. Soak 20 minutes. Boil in salted water for 7 minutes. Drain at 70% cooked.
Cook base: In a heavy pot heat 2 tbsp oil. Add 2 chopped tomatoes and cook 6 minutes. Add spices and the marinade. Cook 5 minutes.
Layer: Add fried paneer to the cooked base. Spread parboiled rice on top.
Add garnishes: Add fried onions, 3 tbsp ghee, fresh mint and coriander.
Add saffron milk: Drizzle saffron milk over rice.
Seal and dum cook: Cover tightly and cook on very low heat 20-25 minutes.
Serve: Paneer biryani is a festive vegetarian biryani. Serve with raita and mint chutney.