Take a pan. Add 1 tsp butter then add capsicum & onion cubes. Just saute them for about a min, remove them from the pan and keep it aside.

Now in the same pan, add 2 tbsp butter, add chopped onions, chopped tomatoes, green chilli, ginger, garlic, cashews & fry them till 75 percent.

Now let it cool down a bit then blend it into a smooth paste. Once again heat the same pan & add a tbsp of butter, then add the masala paste into it. Now add cumin-coriander powder, salt, sugar & saute it for about 3 to 5 mins. Now add milk. Mix it well.

Add paneer cubes to it. Add 2 to 3 drops of rose essence. Give everything a good mix. Cook it for about 3 mins. Now add Kasuri methi, add onion & capsicum cubes into it. Mix everything well & cook it for about 30 secs. more.

Switch off the flame. Now burn a piece of charcoal. Put it inside a small vati (small steel bowl) pour a tsp of ghee over it. Blow it hard then quickly cover the pan and let it remain as it is for about 10 mins.

After 10 mins, open the lid, remove the charcoal vati & give everything a good mix. Add a few saffron strands. Your Nawabi Paneer is now ready to serve. Serve it with tandoori or naan.