Firstly, dry roast the coriander seeds, dried red chili, fennel seed, black pepper, Cloves/Laung, and cumin seeds until excellent aroma releases, for around 1-2 minutes over low flame. Turn off the flame.
Once cooled, grind them into a fine powder. Keep aside until required.
After that, cut the paneer (cottage cheese) into square cubes.
If you are using frozen paneer, then defrost it before cooking. Places cubes in hot water for 7-8 minutes to keep them soft and drain them.
Further, heat oil in a pan and saute the paneer pieces till golden brown.
Additionally, soak them in warm water for 10-15 minutes and drain. keep aside until required.
Further, wash capsicum, remove seeds and cut into small cubical pieces. Cut 2 pieces of onion into small cubical pieces.
Make puree from 3 medium tomatoes in a blender.
Peel ginger, wash and grate it or chop finely.
Heat a pan with 2 tsp oil and butter or ghee.
Add 1 tsp coriander seeds, 2 Bay Leafs/Tej Patta, and 1-inch Cinnamon Stick/Dal Chini, and saute them for one minute.
Additionally, add the chopped ginger and garlic paste. Fry them until the raw smell disappears.
After that add 2 pieces of finely chopped onion and saute till transparent.
Further, add 2 tsp ground spices, and Kashmiri red chili, and also add 1-2 chopped green chilies.
Stir well and saute for a few seconds.
Now add tomato puree and ½ tsp salt. Cook them on low flames.
Stir well and continue to saute till you see oil leaving the sides about 9 to 10 minutes on a low flame.
Further, add cubical pieces of capsicum, and onion. Add water and cook them for some 5-6 minutes.
Additionally, add salt and garam masala powder. Mix them with the rest of the masala.
It's time to add the paneer cubes and cook the paneer for 7-8 minutes in the masala.
Lastly, add Kasuri methi and finely chopped coriander leaves. Mix and cook for another minute.
Finally, serve hot Restaurant style Kadai Paneer, garnished with coriander leaves. Kadhai Paneer goes well with parathas, kulchas, rotis, naan, or any Indian Bread, etc.