Heat oil in a pan, add kashmiri red chilies, green chilies, cumin seeds, ginger , garlic, onion, tomato, dry fenugreek leaves & cashews. Saute all of these for 5 minutes over medium flame.
When the onions turn soft, add sugar, turmeric powder, spicy red chili powder, coriander powder and salt. Saute for 3 to 4 minutes over medium flame.
Now reduce flame to low, cover and cook for 10 minutes.
Turn off and let the mixture cool down.
Transfer to a mixer jar and grind to a fine paste using very little water.
Heat butter in a a pan.
Fry the masala paste in butter for a few minutes.
Add the onion tomato paste and saute until it thickens.
Add fresh paneer cubes along with crushed fenugreek leaves & garam masala powder.
Garnish with fresh coriander leaves and some fresh cream
Simmer until the oil separates and turn off!
Serve it with chapati or naan!
Notes
Garam Masala - is optional add only for additional flavor.Fresh Cream - is optional, add only for a glossy finish.