Heat some vegetable oil and when hot, drop the paneer cubes and fry until golden brown. Drain the paneer cubes in a bowl of warm water (this makes the residual oil come out of the paneer and makes them soft). Keep aside.
In a skillet, fry 1 roughly chopped onion until golden brown and then add in and sauté the dry red chillies for a few seconds.
Blend the onions and red chillies with 10-12 cashews & 1/2 tsp nigella seeds (kalonji) with a little water to a smooth uniform paste.
In the same skillet from before, heat a little more ghee/oil and add in the cumin seeds (jeera). Once it begins to splutter add the ginger-garlic paste and 1 finely chopped onion. Fry until the onions turn translucent.
Add in the chopped fenugreek leaves and fry until they are cooked (takes 2-3 minutes). Now add in the onion-cashew paste, red chilli powder (if desired), coriander powder, kitchen king masala, turmeric and simmer on low flame for a few minutes.
Drain the water from the fried paneer cubes. Add the tomato puree, fried paneer cubes, salt & sugar to the curry. Add quarter to a half cup of water. Mix well and bring to a boil. Check the seasoning.
Once the curry thickens to the desired consistency, switch off the heat, add in the kasoori methi, mix well and garnish the curry with fresh cream.
Serve hot with naan/rotis/parathas or steamed basmathi rice.