Made kadhai paneer for the first time a few days ago:
1. Wash the paneer, cut pieces of paneer and put in warm water.
2. Take oil in a kadhai, add lot of cut onions (i had added 2), add tomato paste, ginger-garlic paste (op), haldi, dhaniya, garam masala (or sabji masala), pisa jeera (little), can add red chilli powder.
3. Add shimla mirch (i had added 2 or 3, can add more). Cook till it softens.
4. Add little water for gravy.
5. After the shilma mirch has cooked, add pieces of paneer and mix well.
6. Add salt.
7. Cook for some time and it's ready.