For preparing kashmiri paneer masala, first fry paneer in oil. Drain and keep aside. In the same oil, add butter and fry kasuri methi for 2 seconds. Add onion and capsicum. Fry for 2 minutes, drain and keep in a plate.
Make a paste of tomato, garlic, pepper, ketchup and green chillies. Keep aside.
In the previously cooked oil, add cumin seeds, garam masala and the ground tomato paste.
Add chilly powder, turmeric and coriander powder. Mix well. Add little water and cook the masala. Add the paneer cubes and let it boil for few seconds.
When the gravy thickens, add cream and the fried onion, capsicum mixture into it.
Decorate with cilantros.
Kashmiri paneer masala is ready.