Grind together the cashews and tomatoes and set aside.
In a deep bottomed vessel, heat the oil and add the onions and fry them until brown.
Add the turmeric and green chilli.
Add the cashew-tomato paste and fry until the oil oozes out on the sides.
Add the coriander powder, cumin powder, chilli powder, garam masala powder and dry methi powder and fry for a minute.
Add little water to make the gravy and add peas, salt and the diced paneer and let it cook for a couple of minutes.
Serve hot with biryani or naan.