Wash and chop onions, green chilies and set aside. Deseed and chop tomatoes or puree them.
Rinse the mushrooms and set aside. Slice them when you are just about to add them to the pan.
Heat oil in a pan. Add cumin and allow to splutter.
Fry onions and chili until golden.
Add ginger garlic paste and saute until the raw flavors go away.
Next put in the tomatoes with salt and fry until mushy.
Add garam masala, coriander powder, turmeric and chili powder. Saute until aromatic and thick. (To make a gravy dish with more sauce, read my notes below from the recipe notes)
Then add peas and mushrooms. Fry for 4 to 5 mins on a medium heat.
Cover and cook on a low flame until the mushrooms are tender but not mushy and soggy. Keep stirring in between.
As the mushrooms cook, they release moisture. When the mushrooms are tender, open the lid and mix well. Saute on a slightly high heat for a minute.
Taste and add more salt if needed. If you prefer you may add crushed kasuri methi (optional).
Garnish with coriander leaves. Serve matar mushroom with rice or chapathi or with toasted bread.