In a large mixing bowl add paneer, capsicum, onion and keep aside.

Heat oil in a kadhai add ginger-garlic paste, besan, and mix well. Cook besan till its light brown.

Add paneer cubes, capsicum, and onion which were kept aside in the kadhai. Now add yogurt, red chill powder, coriander powder, and turmeric powder mix everything well, and switch off the flame. Marinate paneer for 1 hour.

Heat oil in a heavy vessel add cinnamon stick, bay leaf, and khus-khus, and cook on low flame for few minutes.

Further, add onion paste and cook till the colour changes to light brown and then add tomato puree and cook on medium-low flame. Now add red chilli powder, pav bhaji masala, coriander powder, and mix well.

Melt butter in a pan and add marinated paneer. Cook paneer from both sides and add in gravy. Add marinate mixture also in gravy. Cover the vessel and cook on medium heat for 5 minutes.

Serve hot with roti or rice.