Dry roast coriander seeds, cumin seeds, black peppercorns, and dried red chilies in a pan until fragrant.

Cool slightly and grind to a coarse powder using a spice grinder or mortar and pestle. Set aside.

Heat oil in a pan. Add diced onions, capsicum, salt, and kadhai masala. Sauté for 2-3 minutes and keep aside.

In the same pan, heat oil over medium heat. Add cumin seeds and let them splutter.

Add finely sliced onions and sauté until they turn golden brown.

Add ginger garlic paste and cook until the raw smell is gone.

Add finely chopped tomatoes and cook until they become soft and oil starts to separate.

Stir in Kashmiri red chili powder, turmeric powder, coriander powder, cumin powder, and salt. Cook the masala for 2-3 minutes until the spices are well combined and oil separates from the masala.

Add cashew paste and cook it well.

Add the prepared kadhai masala powder and mix well.

Gently add paneer cubes, onion, and capsicum masala. Toss them carefully with the masala mixture, ensuring not to break the paneer cubes.

Cook for another 2-3 minutes until paneer cubes are heated through and coated well with the masala.

Add butter, fresh cream, and kasuri methi. Mix gently.

Garnish with fresh coriander leaves.