Can anyone please give an example for the following:
If I take $B=\{[1\ 0],[0\ 1]\} \implies M=I$. If $x=[1 \ 2], y=[3 \ 4]$, then $\langle x,y\rangle =11$. $[y]^H=[3 \ 4]^T$. But $[3 \ 4]^T M=[3 \ 4]^TI=[3 \ 4]^T \ne \langle x,y\rangle$? What am I doing wrong here?
You've calculated $y^H M$ instead of $y^H Mx$.