In a bowl, whisk the yogurt until smooth and set it aside.
Heat the cooking oil in a pan over medium heat. Add the chopped onions and sauté until they turn golden brown.
Add the minced garlic and grated ginger to the pan. Sauté for another 2 minutes until the raw smell disappears.
Reduce the heat to low and add the ground cumin, ground coriander, ground turmeric, red chilli powder, and salt. Stir well for 2-3 minutes until the spices are well combined.
Add the whisked yogurt to the spice mixture and continue to cook, stirring constantly, until the oil separates from the yogurt. This may take around 5-7 minutes.
Gently add the cubed paneer to the yogurt and spice mixture. Stir carefully to coat the paneer with the sauce. Cook for an additional 5 minutes, allowing the paneer to absorb the flavours.
Sprinkle garam masala over the Nawaabi Paneer and give it a final stir.
Garnish with fresh coriander leaves.
Serve hot with naan or steamed rice.
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