Wash rice 2-3 times and soak for 15-20 minutes. Puree tomatoes ginger and green chilli and keep for later use.
In pan take enough water around 6-7 cups, add whole spices and few drops of oil. Add rice once the water starts boiling.
Cook rice till almost done. Drain rice. Rice should not be mushy. Keep aside. You can take it out in a flat dish so that the rice grains do not stick together.
In a heavy bottomed pan, add oil when it is hot, add paneer and bell peppers and give a quick stir. Saute for 1-2 minutes.
Take out the paneer pieces and bell peppers, keep aside. Do not over fry, as paneer can gets hard and bell peppers turn mushy.
In the same pan, add cumin seeds, bay leaf and whole red chillies(optional) and add tomato puree cook for 2-3 minutes, add the powdered spices, salt and kadhai masala.
Add rice and mix with light hands, taking care not to break the rice grains,
Cover the lid and keep on low flame for 5 minutes.
Once, done fluff lightly with fork and serve hot.