Chop onions, tomatoes, green peppers, garlic cloves.
Heat 1 tbsp oil. Add 1 onion, 3 tomatoes, cashews, fennel seeds and saute for 10 minutes on low heat.
Add paneer butter masala and prepare a puree in a blender.
Heat 1 tbsp oil. Add cumin seeds. When cumin seeds starts to sputter, add turmeric powder, asafoetida, red chili powder, ajwain, bay leaf, green pepper and remaining onion.
Saute for 5 minutes on a medium heat.
Add the puree, salt, sugar and water.
Add chopped paneer and let it simmer for 5 minutes on a low heat.
In another pan heat remaining 1 tbsp oil and 3 tbsp butter.
Add chopped garlic and let it cook for a minute on low heat.
Add the above tadka to the vegetable. Turn off the burner, cover it with lid and do not open it for 5 minutes. This will make the dish aromatic.
Garnish it with chopped coriander leaves and serve hot.