Pour 1 cup of water in a pan. Add onion, garlic, ginger, and tomatoes in it and cook uncovered for 8 min.
Grind to a fine paste.
Heat oil in a non-stick pan. Add cumin seeds, cook for 2 min and then add the paste and fry for 5 min.
Reduce the flame. Add coriander powder, pepper powder, red chili powder, and garam masala powder. Mix and cook for 2 min then add butter and cook.
Put salt and sugar.
Stir till oil separates and the masala is cooked.
Add the paneer cubes to the mixture and 1/2 cup water, bring to boil then lower heat and cover the pan.
Cook on low flame for 10 min.
Add fresh cream, mix and heat. It's ready to serve.