To a small grinder jar, add red chilies, cardamoms, fennel seeds, coriander seeds, cloves & cinnamon. If you add more cinnamon it can ruin the dish. Make a fine powder and keep aside.
Heat oil in a pan. Add onions & cashew nuts. Saute them on a medium high flame until the onions turn transparent or pink.
Add tomatoes and saute until completely mushy.
Cool this completely and add to a blender jar. Blend to a smooth paste or puree. Set this aside.
To the same pan, add oil and heat it.
Saute onion and capsicum on the highest flame until half done. They must be slightly tender yet crunchy.
Add paneer and toss for 1 to 2 mins. Set all these aside. Do not over fry these.
Heat the rest of the oil and saute ginger garlic paste until the raw smell goes off.
Next transfer the ground kadai masala and saute on a low to medium heat for 2 to 3 mins until it turns fragrant. Do not burn.
Add the ground onion tomato paste and saute for 2 mins.
Next add garam masala and red chili powder. Saute for another 2 mins until the masala turns fragrant.
Pour 1 cup water and salt. If you feel the gravy is too thick, pour ¼ to ½ cup more water. Allow it to boil until the gravy thickens and traces of oil appear on top.
Then crush and add kasuri methi. Stir well again. Taste the gravy and add more salt or garam masala as needed.
Add the sauteed paneer, capsicum and onion.
Stir well & finally add ginger juliennes and coriander leaves.
Cover and rest for 2 mins. Transfer to a serving bowl and rest for at least 15 mins for the paneer to absorb the flavors.
Enjoy kadai paneer gravy with roti, butter naan, paratha or jeera rice.