Grind all the ingredients mentioned under ‘to grind’ and keep it aside.
Cube the paneer into bite-size pieces.
In a pan, heat about 2 tablespoon of oil and heat it up. Add the cubed paneer pieces and fry them until they are slightly brown. Remove the paneer and then keep them soaked in warm water until ready to use. This step makes sure that the paneer pieces are soft.
In the same pan, heat the remaining oil/butter. I use equal quantities of oil and butter. Add the cumin seeds and let it crackle.
Now add the ground mixture and fry them in low to medium heat until they are aromatic and the oil leaves the sides of the pan. This mixture might splatter all over, so make sure you fry it in low flame and cover the pan, if needed.
Once the masala is cooked well, add the turmeric powder, red chili powder, salt, sugar and garam masala. Mix well and let it fry for about 5 more minutes.
Now add the yogurt and let it cook further for 2 more minutes.
Add the peas along with a cup of water and mix well. Cook for about 5 minutes to soften the peas. I used frozen green peas.
Drain the paneer pieces and add them to the subzi. Mix well and adjust the consistency of the subzi by adding more water if needed. Simmer for about 5 minutes and then garnish with cilantro.
Serve with roti, chapati, or rice!