Make a fine puree of capsicum, tomatoes and cashews. Set this aside.
Add oil to a pan and heat it.
Add jeera and cardamoms.
When they splutter, add chopped onions.
Fry until they turn golden.
Add ginger garlic paste and fry until the raw smell of ginger garlic goes away.
Pour the tomato puree and saute on a low to medium flame.
Within minutes the mixture begins to leave the pan.
Add salt, turmeric, red chili powder, garam masala and coriander powder.
Saute till oil separates. After frying the mixture for few minutes, oil begins to ooze out.
Pour water and mix well.
Cook covered until the gravy thickens. Traces of oil would be seen on the gravy.
Lower the flame completely. Add paneer and sprinkle crushed kasuri methi.
Cook covered just for 2 to 3 mins. Turn off the stove. Do not overcook the paneer.
Meanwhile add 1 to 1.5 tbsp oil or ghee to a hot pan. Fry onions and green chiles on a high flame just for 2 to 3 mins. The onions must be partially cooked but must retain the crunch.
Pour this over the paneer gravy and sprinkle some corainder leaves. You can set aside few onions for garnish.
Paneer do pyaza is ready to serve.