Heat 3 tablespoons oil in a pan or kadai. Fry the cashew nuts till golden in oil.
Remove them and drain on paper towels to remove excess oil.
Then fry the slit green chillies in the same oil. Remove and drain them too.
making paneer capsicum
Now in the same oil, add the onions. Saute the onions till translucent or light brown.
Add the ginger-garlic paste. Saute till the raw aroma of the ginger-garlic paste goes away.
Now add the tomatoes. Saute tomatoes till the oil leaves the sides.
Add all the dry spice powders. mix very well.
Lower the flame or switch the flame. Then add 5 tablespoons fresh full-fat curd (yogurt). Mix quickly and fast, so that the curd does not split. Mix really well. Do not use toned milk curd as it will split in the gravy.
Add thinly sliced capsicum. add water and salt. Switch on the flame if you have switched it off.
Cook the capsicum till they are tender. This will take some minutes.
When you see oil floating on the top of the gravy, its time to add paneer. Stir and mix well.
Add cream and stir well.
Next add the fried cashews, fried green chillies and kasuri methi.
Stir the gravy and switch off the flame.
Serve paneer capsicum hot garnished with coriander leaves, with rotis, parathas or rice.