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Heat 2 teaspoons of oil in a pan on medium heat. Once hot add chopped onions, sprinkle some salt and cook till onions are soft and translucent.
Add cashew nuts and saute for 2 minutes.
Mix in chopped tomatoes and cook till they are soft.
Mix in turmeric powder, coriander powder and red chili powder and cook for a minute.
Turn off the stove, let it cool down a bit and make smooth paste into blender or grinder.
In the same pan heat the butter and oil on medium heat.
Add whole spices. Saute for a minute or till you get nice aroma of spices.
Next saute ginger and garlic paste for a minute or till the raw smell goes away.
Now add prepared onion-tomato paste and add remaining salt. Cook till all the moisture evaporates and it becomes like a thick paste. Do stir to make sure that it is not sticking to the bottom of the pan.
Add kashmiri red chili powder for color and green cardamom powder. Mix well and cook for a minute.
Then add water to make gravy consistency and simmer for 3-4 minutes.
Add kasoori methi, paneer cubes and mix.
Lastly add cream, mix and let it simmer for 2 minutes.
Turn off the stove.