First soak the cashews and khus-khus (poppy seeds) together in little water for about a hour. Then add this into the grinding jar along with some curd and grind them into a smooth paste.

Now dry roast all the above special whole masalas mentioned in the ingredients section above. Then grind them well into a fine powder.

Now heat a pan, add some ghee in it. Now add a bay leaf. Then add some ginger-garlic paste. Keeping the flame low, fry it for about a minute so that the raw smell disappears.

Later add the capsicum cubes and let it saute for about a minute.

Next add 3 tsp of special masala (prepared above in step 2). Mix it well with the fried capsicum and fry them together for about 30 seconds. Remember to keep the flame at the lowest or else the masala would burn.

Next add the cashew-poppy seeds paste, prepared in step1 above. Add little salt and sugar and mix everything well. Now cook the masala on a low flame for about 5 to 7 minutes.

Now add the paneer cubes to it. Gently mix the paneer with the masala. Add 1/4th cup of lukewarm water as gravy. Give it a mix.

Now cover the pan and let it cook for about 7 minutes on a low flame. Later open the lid and check the salt consistency. Sprinkle some chopped coriander. Switch off the flame. Your shahi paneer is now ready to serve. Serve it hot with some parathas.