Cut the paneer into 1/2-inch (about 1 or 3/4 cm) thick square pieces. Puree the tomatoes in a blender until smooth. To prepare the marinade for the paneer tikka, add the yogurt to a large bowl along with 1/4 teaspoon red chili powder, 1/2 teaspoon ground coriander, 1/4 teaspoon turmeric powder, and a little less than 1/2 teaspoon salt. Add 2 tablespoons mustard oil, 1/2 teaspoon garam masala, a pinch of dried fenugreek leaves, bell pepper, and onion pieces.

Add the paneer pieces to the marinade. Mix well until the paneer is evenly coated. Once coated, cover the bowl and refrigerate for 20 minutes to let the flavors set. After 20 minutes, the paneer tikka will be ready to cook. To cook the paneer tikka, heat 1-2 teaspoons oil in a nonstick pan over medium heat. Place the marinated paneer pieces in the pan and cook until golden brown on the bottom.

Prepare the gravy for the paneer tikka. To make the gravy, heat a pan over medium heat and add 2 tablespoons butter. Once the butter is hot, add cumin seeds and let them sizzle. Add the finely chopped onions, turmeric powder, 1 teaspoon ground coriander, dried fenugreek leaves, 1/2 teaspoon ginger paste, and garlic paste. Sauté the spices on low heat until fragrant.

Once the spices are lightly sautéed, add the tomato puree and 1/2 teaspoon red chili powder. Cook the tomatoes with the spices until the oil starts to separate from the mixture. When the oil separates, the masala is ready. Add just under 1/2 cup water and mix well.

Add the cooked paneer tikka to the prepared gravy and mix gently. Cover and simmer the gravy on low heat for 2-4 minutes. Garnish the hot and flavorful paneer tikka masala with chopped cilantro and serve.