To begin making the Paneer Matar Butter Masala recipe, first shallow fry the paneer cubes in 1 to 2 tablespoons of oil in a wide pan until it is slightly golden/ creamy golden and keep it aside.
The next step is to prepare the masala/gravy. Heat butter/clarified butter in a large heavy bottomed pan, add onions and peas/matar.
Sauté until onions & peas/matar till the onions turn transparent. Add ginger and garlic and stir for 1 to 2 minutes.
Add whole dry red chilies, cloves, cardamom, cinnamon, whole black peppercorns and coriander seeds (that is all the whole spices) and stir a few times.
Add tomatoes and cook until tomatoes turn soft and mushy. Remove from heat and keep aside to cool a little.
Puree this entire mixture along with 1/4 cup of cashews until smooth, adding a little water if required.
Transfer this gravy back to the wide pan and place on heat. Add shallow fried paneer pieces to the gravy, add salt to taste, sugar, kasuri methi, chili powder (if using), water if required to achieve desired consistency and simmer on low heat for the flavors to mingle.
Finally add milk, mix well, allow the curry to simmer for another minute or so on low heat, then remove.
Serve Paneer Matar Butter Masala with Phulkas or even steamed rice for a delicious weekday meal.