Add one tablespoon ghee to a pan, heat it.

Add cubed onions, green chilli and fry until they turn transparent.If using tomato, add it now and fry till mushy. Transfer these to a plate and cool..

Blend this with very little water to a smooth puree or paste..

You could fry the paneer lightly in ghee. This step is optional. Keep the fried paneer aside..

Heat up the same pan with the rest of the ghee or oil, add dry spices, saute until they turn fragrant..

Add ginger garlic paste and fry till the raw smell goes off.

Add the onion cashew paste, chilli powder, garam masala, turmeric and salt. Fry for about 3 to 4 minutes..

Pour ½ to ¾ cup water. Cook till the gravy thickens. Or till u see the oil begins to separate..

Add paneer and cook for about 3 minutes. If sauted in ghee before then just add paneer and do not cook further. Add kewra water if using and stir..

Transfer shahi paneer to a serving in bowl