Dry roast coriander seeds and red chillies separately and grind it with tomato to a fine paste.
Heat half a teaspoon of oil, add cubed paneer and toast it until it turns golden brown.
Transfer the toasted paneer to hot water for 5mins, drain and keep aside (this is to retain the softness of the paneer).
Heat remaining oil in a pan, add green chillies and ginger garlic paste saute for a minute.
Then add onions, tomato cubes and saute till raw smell leaves and onions turn slightly browned.
Then add the tomato puree(with coriander seeds and red chillies grinded).
Add chilli powder, garam masala powder and dhania powder, give a quick stir. Add required salt.
Add kasoori methi, Next add the capsicum and saute till its cooked but retain its crunchiness don't let it become very soft.
Add 1/4 cup water and allow it to boil and thicken.
Sprinkle little water if its too dry. Add the paneer cubes mix well.
Add chopped coriander leaves, gives quick stir and switch off.
Serve Kadai Paneer with rotis or mild pulaos!