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Step 1
Soak 8 to 10 wooden skewers in water while you prepare the kebabs.
Step 2
Process garlic and ginger in a food processor until a smooth paste forms.
Step 3
Combine yogurt, mustard oil, lime juice of 1/2 lime, 1 1/2 teaspoons fenugreek leaves, 1 teaspoon garam masala, 1/2 teaspoon cayenne, and 1/2 of the ginger-garlic paste in a bowl. Whisk until smooth. Add paneer, green bell pepper, red bell pepper, and onion. Stir until coated.
Step 4
Preheat the oven to 400 degrees F (200 degrees C).
Step 5
Thread the coated paneer, peppers, and onion onto the soaked skewers. Place kebabs in a baking dish.
Step 6
Bake in the preheated oven until kebabs are golden brown, 25 to 30 minutes.
Step 7
Soak cashews in a bowl of hot water for 10 minutes; blend as finely or coarsely as desired.
Step 8
Heat olive oil in a large saucepan over medium-high heat. Add cumin seeds; cook until sputtering, about 1 minute. Add remaining onion; cook and stir until translucent, about 5 minutes. Add the remaining ginger-garlic paste, 1 tablespoon fenugreek leaves, and 1/2 teaspoon garam masala. Cook and stir until flavors blend, about 2 minutes. Stir in tomatoes; cover and cook until tomatoes break down, about 5 minutes.
Step 9
Stir the ground cashews into the saucepan with the tomato mixture. Add juice of 1/2 lime, coriander, 1 teaspoon cayenne, turmeric, and salt. Let simmer until sauce is thickened, adding some water if sauce gets too dry and sticks to the pan, about 5 minutes more. Add the baked kebabs to the sauce. Stir to coat evenly.