Heat butter in a pan. Add capsicum and saute for a while until it turns crunchy. Keep aside.
Add butter to the kadai. Once hot add paneer cubes and shallow fry until golden brown.
Tranfer this fried paneer into a cup of cold water and keep aside.(This step is essential otherwise paneer wld turn too crunchy and will not absorb the spices).
In the same pan, add jeera and once it splutters add the onions and saute until golden brown.
Grind tomato and soaked cashews without adding water to a fine paste.
Once the onion is done, add the tomato-cashew paste.
To this, add turmeric, red chilly powder, coriander powder, garam masala and salt and saute until the raw smell of tomato and spices goes off and oil separates.
To this add the fried paneer and some water and simmer for 5-8 minutes.
Now add capsicum and simmer only for 2 minutes. Make sure capsicum remains crispy and not chewy.
Once done, garnish with crushed fenugreek leaves.
You may add a dash of cream just before serving.
Enjoy with roti/paratha/nan/chapati of your choice.