- Heat 1/2 tablespoon mustard oil in a pan, add chopped capsicum fry until tender. Transfer them to plate and keep aside until needed. Heat 1/2 table spoon mustard oil then lightly fry the paneer and keep aside.
- Heat 1 tablespoon oil in same pan, add chopped onion and fry until it turn light brown.
- Add crushed tomato, cashew paste, cumin powder, turmaric powder, kashmiri red chilli powder, ginger paste, red chilli powder, coriander powder and mix it well, stir-fry the paste until light brown.
- Add garam masala powder, salt as per taste and 1 cup water. Bring mixture to a boil, add capsicum and paneer, cook it for 5 minutes, mix well, now it's ready to serve.