Heat oil in a cooking vessel, add the onion paste and sauté, approx 6-7 mts. Add the capsicum pieces and saute for 2-3 mts. Add ginger-green chilli paste, coriander pwd and combine. Add few tbsps water and saute for 2 mts.
Add milk and cashew nut paste and simmer for 7-8 mts. Add paneer, crushed kasuri methi and salt. Simmer for a few more mts.
Stir in malai, garam masala pwd and kasuri methi and combine, cook for a mt. Turn off flame.
Let it sit for a while before serving. The gravy thickens, so at the time of serving, add a little milk and combine. Serve hot with rotis or naan.