Heat 1 tbsp butter and 1 tbsp oil in a pan. Sauté chopped onions until they are soft.
Add ginger garlic paste and sauté until raw smell goes away.
Add chopped tomatoes and cashews. Sauté for 5–7 minutes until tomatoes become soft.
Let it cool down a bit, then blend the mixture into a smooth paste.
In the same pan, heat the remaining 1 tbsp butter. Add the blended paste and sauté for 3–4 minutes.
Add red chili powder, turmeric, coriander powder, and salt. Mix well.
Add 1/2 cup water to make the gravy consistency right. Simmer for 5 minutes.
Add paneer cubes and stir gently. Simmer for 5 minutes more.
Add cream, garam masala, and crushed kasuri methi. Mix gently.
Garnish with a little butter and some extra cream if desired. Serve hot with naan, roti, or rice.