Take 1.5 cup water in a pan and add sliced onion, green chilli, ginger, garlic, cashew, poppy seeds, coconut and two cardamom. Now cover and cook on medium heat for 10 to 15 minutes or until almost all the water is evaporated and everything is cooked properly. Now let it cool and grind it to a smooth paste.

Heat oil in a nonstick pan and add all the whole spices. Now add cumin seeds and when it becomes brown, add prepared onion paste to it. Cook it for five minutes on medium heat and add yoghurt to it. Keep the heat very low and keep stirring continuously otherwise the yoghurt can split. Cook for 2 to 3 minutes.

Now add coriander powder, garam masala, kasuri methi, sugar, salt and pepper powder and cardamom powder to it and mix everything well. After cooking for 2 minutes add fresh cream to it and cook it for another 5 minutes on medium heat.

Now add paneer pieces to the gravy and mix everything well. Cook for 5 more minutes and turn off the heat. If you want to fry paneer, then you can shallow fry it and add to the gravy. I have not fried it.