Heat 1 tablespoon oil in a skillet on medium heat
Place the paneer pieces in s single layer and lightly fry the paneer pieces until slightly brown on two sides (approx. 1-2 minutes per side). Remove from heat.
To the same skillet, add 1 tablespoon of oil. Add onion, garlic, and ginger, and fry until the onion starts to turn translucent. This will take around 3-4 minutes. Add spice powders - Kashmiri red chilli powder, turmeric powder, and garam masala. Fry for 2-3 minutes or until fragrant.
Add tomatoes and salt to taste. Fry until tomatoes are cooked and mushy [this will take about 6-7 minutes.
Once cooled, add to a small blender jar. Add raw cashew nuts. Grind to a smooth paste with about ¼-½ cup water.
[Note: I give a quick rinse to the skillet to prevent burning in the next steps of cooking]
Add oil (and butter if using) to the skillet on medium heat. Add cumin seeds and the ground paste. Fry the paste until almost all the liquid evaporates.[Note: The time it takes for this step depends on the water you used to grind the paste. It typically takes me about 8-10 minutes. Taste and make sure that there is no raw taste or smell before proceeding to the next step. If you are unsure, fry for a few more minutes, without burning the mix. You can adjust the seasoning here as well.]
Add 1½ cups of water (adjust to suit your desired consistency [Note: I have made it slightly thick in the video by using a lesser quantity of water]. Bring to a boil. Add paneer pieces and simmer for 2-3 minutes. Sprinkle crushed kasuri methi.
Serve hot garnished with cream.
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