Heat the oil in a pan.
Saute onion and cashews until they transparent.
Add tomatoes and saute until completely mushy.
Cool this and blend to a smooth paste. Set this aside.
To the same pan add little oil and heat it.
Saute onion and capsicum on a high flame until half done and crunchy.
Add panner and toss for 1 to 2 mins. Set them aside.
For Making kadai paneer --
Add little more oil and heat pan again . Saute ginger garlic paste until the raw smell goes off.
Add chrushed coriander seeds and red chilli.
Add the onion tomato paste and saute for 2 mins.
Add garam masala and add water and salt. Saute until gravy thickens.
Add kasuri methi. Now add sauted paneer, capsicum and onion. Stirr well. And switch off the flame.
Transfer to the serving bowls and enjoy with roti, paratha or jeera rice.