Heat ghee in a kadhai. Add cumin seeds and allow to sputter. Now add onion and ginger garlic paste. Cook for about 5 minutes till the raw smell is gone and onion is golden brown.
Now add the tomatoes and green chillies (if using). Saute well till the paste becomes mushy.
Break khoya into small pieces and add to the paste. Cook till the khoya melts into the paste. If you want you can blend the masala paste in a blender after cooling it down.
Now add turmeric powder, garam masala, coriander powder along with cashew nut paste. Add some water to thin down the gravy. Add salt, sugar and cook the curry with a lid on low flame for about 10 minutes.
Add more water if needed. Check the seasoning and now add the paneer cubes. Cook for about 2-3 minutes. Sprinkle kasuri methi.
Khoya paneer is ready to serve. Serve it hot with rotis and rice.
You can fry the paneer pieces if you like. I prefer them as is.
Don’t overlook the paneer or it becomes stringy. Hence add it towards the end.
You can also add mushroom if you like or fresh/frozen peas to the curry.
I use store bought khoya but you can make your own khoya if you like.
Khoya Paneer is a really tasty and rich recipe that is mildly spicy. You can add more chilli powder if you like it hotter.