For the paneer, preheat the oven to 450F. Spread the ricotta evenly in a 9 x 5-inch bread pan and bake until the cheese is lightly browned on top and firm but not dry, about 40 minutes. Let cool (it will firm as it cools), then cut the paneer into 1- to 1½-inch squares. Reserve half and refrigerate or freeze the rest for another use.
Heat ½ tablespoon of the oil in a large nonstick pan over medium-high heat. Add as many squares of paneer as will comfortably fit and brown the squares on all sides. Drain the cheese on paper towels. Continue this way to brown all of the paneer, adding ½ tablespoon more oil as needed. Set the paneer aside.
For the sauce, combine the garlic and 1/8 teaspoon of the cumin seeds in a mortar and pestle or an electric spice grinder and grind to a paste.
Put the oil, cinnamon, cardamom, cloves, and peppercorns in a large, deep pot over medium-high heat. Cook, stirring, until the cinnamon stick unfurls, 1 to 2 minutes. Add the chiles, the remaining 1 teaspoon of the cumin seeds, the coriander seeds, and bay leaf and cook, stirring, until the seeds turn golden brown, about 1 minute.
Add the onions and salt and cook, stirring often, until the onions turn a uniform golden brown, 10 to 12 minutes. Keep a cup of water beside the stove as the onions cook. As the onions begin to stick, add water, about 1 teaspoon at a time, and scrape the bottom of the pan with the spoon to pull up the browned bits and keep the spices from burning. Do this as often as necessary (five or six times) until the onions are well browned.
Add the ginger and cook, stirring, 3 to 4 minutes, adding water as needed to keep the onions and spices from sticking. Stir 1 teaspoon of water into the garlic paste. When the ginger has cooked, add this garlic paste to the pot and cook until the water has evaporated, 1 to 2 minutes.
Add the ground coriander, cumin, turmeric, cayenne, and about 1 tablespoon water and cook until the mixture begins to dry out and stick to the bottom of the pan, about 1 minute. Add the tomatoes and cook until they begin to dissolve, 3 to 4 minutes. Then turn down the heat and cook until the tomatoes have completely melted into the sauce and the oil is starting to pool around the onions, 2 to 3 more minutes.
Whisk the yogurt until smooth in a small bowl. Stir in a spoonful of the hot sauce to temper the yogurt and then return the mixture to the pot. Add 2 cups of water and the peas. Cover, bring to a simmer, and cook until the peas have thawed, 4 to 5 minutes.
Fold in the paneer and sprinkle the garam masala and 1 tablespoon cilantro over the top. Cover and simmer very gently until the peas are softened and the cheese is warmed through, 3 to 5 more minutes. Taste for salt. Transfer to a serving bowl and sprinkle with the remaining cilantro. Serve hot.
