Heat 1 tablespoon oil and 2 tablespoons butter in a large skillet or wok on medium heat. Add thinly sliced onion, cashew, dried fenugreek(Kasuri methi), and all the listed whole spices. Sauté the onion until slightly golden and soft.
Add chopped tomatoes, tomato paste, powdered spices, and stir well. Cover the skillet and cook on low until tomatoes are soft and oil starts to separate. Takes about 8-10 minutes.
Uncover the skillet and add ½ cup water. Now blend the curry with a hand blender until smooth. If you do not have a hand blender, turn the heat off, cool down the mixture for 10 minutes before blending it in the blender.
Now add cubed paneer and stir well. Simmer the curry on low for 5 minutes or until curry thickens up and paneer softens.
Garnish with a dollop of butter, heavy cream, and chopped cilantro.
Serve it warm with plain rice or Naan.
Notes
Tip: Sieve the curry after blending then transfer it to the skillet to simmer with Paneer for a silky-smooth texture.