Begin by heating a pan over low flame and adding coriander seeds, cumin, fennel seeds, dried red chilies, and whole peppercorns. Toast the spices gently, stirring often, until they release a deep aroma and turn slightly darker in color. Remove from heat and allow them to cool completely. Once cooled, grind the mixture into a coarse powder. Set aside — this vibrant masala forms the signature flavor base of the dish.
In a kadai, heat oil and ghee together over medium heat. Add cumin seeds and let them sizzle until fragrant. Mix in the chopped garlic, ginger, and onions. Sauté until the onions soften and take on a golden-brown hue.
Lower the heat and sprinkle in turmeric, chili powder, kadai masala, and salt. Stir continuously to ensure the spices toast gently without burning. When the spices become aromatic, add the chopped tomatoes. Cook until the tomatoes break down into a soft, pulpy mixture and the oil begins to separate from the sides — a sign that the masala has cooked thoroughly.
In a separate pan, heat a little oil on high flame. Add onion cubes, capsicum, tomato pieces, and paneer. Sprinkle garam masala over them. Stir-fry quickly so the vegetables stay crisp yet lightly charred around the edges, while the paneer absorbs the spices.
Transfer the stir-fried vegetables and paneer into the kadai containing the cooked masala. Add half a cup of water and mix well to create a cohesive gravy. Let everything simmer together for about 2 minutes.
Finish by stirring in cream, crushed kasuri methi, chopped coriander, and ginger julienne. Fold gently to preserve the shape of the paneer and vegetables.
Serve hot with roti, naan, or paratha — Kadai Paneer is ready to enjoy.