Prepare the Paneer: Lightly fry paneer cubes in a pan until golden. Set aside.
Make the Tomato-Cashew Paste: Blend soaked cashews, tomatoes, garlic, and ginger into a smooth paste.
Cook the Base: Heat butter and oil in a pan. Sauté onions until golden. Add the tomato-cashew paste and cook for 5-7 minutes.
Add Spices: Stir in turmeric, red chili powder, garam masala, and salt. Cook for 2-3 minutes.
Simmer the Sauce: Add water to adjust consistency and simmer for 5 minutes.
Add Paneer and Cream: Gently add paneer cubes and pour in fresh cream. Simmer for 2-3 minutes.
Garnish and Serve: Sprinkle kasoori methi and cilantro. Serve hot with naan or rice.