Heat a pan and add 2 tsp of oil and roast all the ingredients under kadai masala until fragrant. Be careful not to burn it. Cool it down and grind it to a coarse powder and keep it ready.
In the same pan, add 3 tsps of oil and heat it to medium to high flame. Add the cubed onions, red capsicum, green capsicum and sauté it on high flame for about 1 minute until the veggies are slightly charred and cooked while still crunchy. Transfer it to a plate and keep it aside.
Heat the same pan on medium flame, add 2 tsp oil, add cumin seeds, green chillies and sauté for a 30 seconds. Next add in chopped onions a little salt and cook the onions until soft. add little water to deglaze the pan.
Next add the tomato puree, ginger garlic paste and cook the tomatoes in onion until slightly dry ( be careful not to burn it)
Next add the spice powders - red chilli, coriander, garam masala and sauté for a few seconds.
Add about 1/2 cup fo water and cook for 2 minutes until it comes to a simmer. Next toss in the paneer cubes and the ground kadai masala, kasuri methi and stir it in.
Adjust 1/4 cup more water if needed to make more gravy. Finally toss in the charred capsicums and onions into the kadai paneer masala and cover and cook for about 5 mins on medium flame.
Turn off the flame and serve it hot with roti or Rice