Step 1

Rinse or wipe dry the button mushrooms. Slice off a bit of the base stalk. Then slice or chop mushrooms. Keep aside.

Step 2

Peel, rinse and chop onion, garlic and ginger. Also chop tomato. Keep aside.

Step 3

Heat 2 tablespoons oil in a pan or kadai. add the chopped onion.

Step 4

Mix and then saute on a low to medium flame till the onion starts turning golden.

Step 5

Then add the chopped ginger, garlic and saute till the raw aroma of both ginger and garlic goes away.

Step 6

Next add the chopped tomatoes and 2 tablespoons whole cashews.

Step 7

Mix very well and begin to saute the tomatoes on a low heat.

Step 8

If the tomatoes start sticking to the pan, then you can sprinkle some water. Stir and continue to saute.

Step 9

Saute till the tomatoes soften very well. Switch off heat and let this onion-tomato mixture become warm or cool down at room temperature.

Step 10

Then take this mixture in a grinder or blender jar.

Step 11

Add 3 to 4 tablespoons water and grind or blend to a smooth fine paste. There should not be any chunks of cashews or tomatoes in the paste. Keep aside.

Step 12

Now heat 1 tablespoon oil in the same pan. Add 1 small to medium tej patta and ½ teaspoon shahi jeera (caraway seeds).

Step 13

Fry till the shahi jeera splutters on low heat. If you do not have shahi jeera, then you can use jeera (cumin seeds) or else skip shahi jeera.

Step 14

Now add the chopped mushrooms. Stir and mix them well.

Step 15

Begin to saute them on a low heat stirring often.

Step 16

The mushrooms will release water when cooking.

Step 17

Continue to saute stirring often till all the water dries up. The entire mixture should be dry before you proceed to the next step.

Step 18

Now add ¼ teaspoon kashmiri red chilli powder and ¼ teaspoon black pepper powder. mix very well.

Step 19

Now add the ground onion-tomato-cashew paste and mix very well.

Step 20

Saute stirring non-stop for 4 to 5 minutes. Then add 1 cup water and mix again very well.

Step 21

Season with salt as per taste and mix again. On a low heat let the gravy come to a boil.

Step 22

Then add ¼ teaspoon garam masala powder and ¼ teaspoon kasuri methi (crushed). mix again well.

Step 23

Now add 200 grams paneer chopped in cubes or squares.

Step 24

Then add ¼ cup grated or crumbled paneer. You can use 3 to 4 cubes from the 200 grams paneer and crumble them and add.

Step 25

Mix very well and simmer for a few seconds.

Step 26

Switch off heat and add 1 tablespoon chopped coriander leaves.

Step 27

Mix well and serve mushroom paneer with tandoori roti, phulka, naan, butter naan, pudina paratha, kerala parotta and even pooris.

Step 28

This gravy also goes well with a mildly spiced rice like cumin rice, garam masala rice, matar pulao, ghee rice, kuska rice, saffron rice.