Heat oil in a flat pan and shallow fry paneer cubes till golden on all sides. Set aside.
Heat butter in a heavy bottom saucepan, add 1/2 teaspoon shahi jeera and tablespoons tablespoon finely chopped garlic and fry till soft and lightly golden.
Then add chopped onion and saute for few minutes till light brown.
Now add chopped tomatoes along with 2 teaspoons red chili powder, 1 and 1/2 teaspoon cumin powder and 1/4 teaspoon turmeric powder. Cover and cook on slow flame for 5 minutes or till oil separates.
Add remaining spices like 1 tablespoon kasoori methi, 1/4 teaspoon methi seeds powder, 2 tablespoon tomato puree, 1/4 teaspoon garam masala powder, 1 teaspoon sugar, food color, and 3/4 teaspoon salt. Stir well and cook for 2 minutes.
Remove the onion tomato masala from the saucepan, cool for some time and grind to a smooth paste. Return the ground paste back to the saucepan.
Switch to the flame and add cashew nut paste, 1/4 cup cream and milk combined to the masala. Stir and let it simmer on low flame for 1 minute.
Finally, add fried paneer cubes and some more butter if you wish.
Serve hot drizzled with more cream and some chopped coriander leaves with Pulao or naan.