To begin making the Paneer Pasanda Recipe, get all the ingredients ready and handy.

See how to make homemade paneer recipe. Cut them into cubes and keep aside.

Grind the ingredients to be made into a paste and keep aside.

Whisk the yogurt, gram flour, kasuri methi, garam masala, red chilli powder and salt. Keep aside. 

Heat oil in a heavy bottomed wok; add in the onion cashewnut paste and saute on low to medium heat until the raw smell from the onions go away and the color changes to pink / golden.

Add in the yogurt mixture and keep stirring until the Pasanda gravy thickens.

Once the Paneer Pasanda gravy begins to thicken, add in the cubed paneer pieces and simmer for another 2 to 3 minutes. Check the salt and spice levels and adjust to suit your taste.

Turn off the heat and serve the Paneer Pasanda along with Phulka, Naan or Tawa Paratha.