First powder red chilies and coriander seeds in a blender. You can blend finely or slightly coarse.

Heat oil in a pan. Next saute onions and cashews until they turn transparent.

Add tomatoes and saute until completely mushy.
Cool this and blend to a smooth paste. Set this aside.

To the same pan, add little oil and heat it.
Saute onions and capsicum on a high flame until half done and crunchy.
Add paneer and toss for 1 to 2 mins. Set all these aside.

Add little more oil and heat up the pan again. Saute ginger garlic paste until the raw smell goes off.
Next transfer the ground coriander, chilli powder and saute for 1 min until it turns fragrant.

Add the ground onion tomato paste and saute for 2 mins.
Next add garam masala and red chil powder If desired. Saute for another 2 mins.

Add ½ to ¾ cup water and salt. Allow it to boil until the gravy thickens and traces of oil appear on top.
Then crush and add kasuri methi. Stir well again.

Add the sauted paneer, capsicum and onion. Stir well. Switch off the stove.
Finally add ginger juliennes and coriander leaves. Cover and rest for 2 mins.

Ransfer to a serving bowl and allow to rest for at least 15 mins before serving.
Enjoy kadai paneer gravy with roti, paratha or jeera rice.