Heat oil in a non stick kadai. Add onions and cashewnuts and sauté lightly. Add tomatoes and cook for 10-12 minutes or tomatoes are pulpy.
Add red chilli powder, coriander powder, turmeric powder, salt and sauté.
Transfer this mixture into a mixer jar, cool and grind to a paste with a little water. Transfer the mixture into the same kadai.
Add butter, cover and cook on low heat for 10 minutes.
Add cream and mix well. Add paneer, kasoori methi powder, garam masala powder, green cardamom powder and mix well.
Transfer into a serving bowl, garnish with some cream and serve hot.