Dry roast kadai masala ingredients in a pan for a minute.
Blend coarsely and keep aside.
For Onion tomato paste
Melt butter in a pan
Add garlic, ginger and saute for 2 to 3 minutes.
Add kashmiri red chilli powder, jeera powder and coriander and saute for a minute.
Add red onion and saute until slightly brown.
To the pan add the chopped tomatoes and cashew nuts.
Cook until tomatoes are soft and mushy
Add kadai masala and cook well.
Cool the gravy mix and blend it to a smooth paste and keep aside
Meanwhile deep fry the paneer until golden brown and soak in cold water for half an hour. This allows paneer not to break in the gravy and to make it very soft in texture.
Kadai Paneer Gravy
Heat oil in a pan
Add bay leaf, green chilli followed by red onion and capsicum.
Add in the blended gravy, once when the gravy started leaving oil add half cup water and salt to taste.
Add paneer and cook well.
Finish with cream and cook for few more minutes.
Garnish with coriander leaves and serve hot
Video
Notes
Always roast dry spices before you blend. It gives a nice aroma to spices and easy to grind.