Heat 2 teaspoons oil in a pan over medium heat. Add the sliced onions and sauté for 2–3 minutes until they soften and become translucent. Add ginger-garlic paste, tomatoes, and chopped green chili, along with ¼ teaspoon salt to help the tomatoes break down faster.
Cover and cook for 4–5 minutes until the tomatoes soften. They do not need to be completely cooked — just tender enough to blend smoothly. Remove from heat, let it cool slightly, then transfer the mixture to a blender and process into a smooth paste. Set aside.
Warm a pan over medium heat and pour in 1 tablespoon oil. Once hot, add cumin seeds and allow them to sizzle. Stir in the blended onion-tomato mixture. Add coriander powder, turmeric, and red chili powder, stirring well to cook the spices for about a minute.
Continue cooking for 5–6 minutes until the masala deepens in color and you notice oil separating along the edges — a sign that the mixture is well-cooked.
Pour in 2 cups water, followed by garam masala, crushed kasuri methi, and salt as needed. Bring the curry to a gentle boil. Add the prepared koftas and allow them to simmer in the gravy for 2–3 minutes so they absorb some of the flavor.
Finish with fresh cilantro and serve warm with rice or roti.