Directions

• Slice the block of paneer into 1-inch rectangles. Then, slice each rectangle into 2 or 3 slices. Transfer the paneer to a mixing bowl.
• In a small bowl, stir the yogurt, ginger, garlic, cumin, red pepper, and salt. Pour this yogurt marinade over the paneer and mix together. Let it marinate for at least 30 minutes.
• Once the paneer has been marinated, pan fry the paneer. Heat a nonstick frying pan with 1 tablespoon of oil over medium heat. Arrange the pieces of paneer over the pan in a single layer. You probably need to fry the paneer in batches. Cook for 2 to 3 minutes until golden brown. Flip over all the pieces, and pan fry for another 2 minutes.
• Transfer the fried paneer to a plate and turn off the heat.
• Drizzle the remaining 1 tablespoons of oil to the pan and cook the remaining paneer. Save any leftover yogurt marinade. You will add it to the sauce later. Transfer the cooked paneer to the plate.
• If using green and red pepper sauté it in the same pan. Combine this with the paneer.
• In a separate large sauté pan, add another 2 tablespoons of oil over medium heat. Add the onions, cashews and 1/2 teaspoon salt and cook for 5 minutes. Stir frequently to prevent the onions from burning. If the onions brown very quickly, reduce the heat slightly.
• Add the ginger, garlic, coriander, garam masala, turmeric, curry powder, and remaining teaspoon of salt to the skillet. Cook for 30 seconds and coat the onions with the spices.
• Add the tomatoes, sugar, and water, and reduce the heat. Cover the pan, and let everything simmer for 10 minutes. Remove the lid and add the heavy cream, leftover yogurt marinade. Stir to combine.  Let the sauce cool.
• Blend the sauce, pour the sauce back into the pan and turn the heat to medium.
• Finally, add the cooked paneer and peppers to the sauce and let it heat up for about 1 minute. Turn off the heat. Garnish the paneer tikka masala with cilantro if you like.