Blend yogurt with salt, sugar and one green chilli to a smooth paste.
Make a paste of cashews and three chillies and set aside. Chop one chilli and set it aside.Heat half tablespoon oil in a non-stick pan.
Add paneer and saute for three minutes and sprinkle salt on it. Remove and keep aside.
Heat remaining oil in a non-stick pan. Add cardamoms, cinnamon, cloves and ginger and saute for a minute.
Add cashew-chilli paste and stir on low heat for two minutes. Add yogurt and keep stirring till the mixture thickens.
Add salt, chopped chilli and cover and cook for a minute.Add the paneer and keep stirring slowly.Remove and serve hot with chapatis.