Start Instant Pot on saute mode and to it add the whole spices (bay leaf, cloves, nutmeg shell, cumin seeds and cinnamon). Stir for a few seconds and add the onions, salt and fry till light brown.
Add ginger garlic, green chilli (optional) and saute till raw garlic smell disappears.
Stir in the spices(turmeric, red chilli powder, coriander and garam masala) followed by tomato puree and cook for a min or two.
Drain the water from the rice completely and add it along with green peas and 1 cup water, mix well. Deglaze if needed. Ensure nothing is sticking to the bottom of the pot.
Add in the paneer (water drained). Give it a quick gentle mix.
Close the Instant pot lid with vent sealing and cook on manual or pressure cook (high) for 6 mins. Once the cooking is complete, quick release after 5 mins.
Open the lid and fluff up the rice using a fork. Close the lid and let it rest for 5 mins. Open the lid, add lemon juice and fluff it up again. Be careful to not break the paneer (as much as possible). Finish off with some cilantro.
Serve warm with some cucumber raita.