Soak cashew nuts in warm water for at least 15 minutes and make a smooth paste in a grinder along with tomatoes and keep it aside.
Heat oil in a pan on medium heat, add whole spices and sauté for 30-40 seconds.
Add chopped onions and salt.
Cook till onions are soft and translucent.
Add ginger-garlic paste and sauté for a minute.
Add prepared tomato purée and slit green chillies and stir occasionally and cook till all the moisture is evaporated and oil starts to ooze out.
Then add red chilli powder and coriander powder and mix well and cook for a minute.
Then add prepared cashew nut paste, mix well and cook for a minute while stirring constantly.
Add water and let it simmer on low flame for 4-5 minutes.
Add sugar, garam masala powder paneer masala and kasoori methi. (Do crush the kasoori methi between your palm before adding it), stir well.
Add paneer cubes and butter and heavy cream, mix gently on a medium flame for 2-3 minutes and switch off the flame.
Serve hot with any types of breads or jeera rice , after garnishing with chopped coriander leaves.