Heat oil in a pan and add cubed paneer.
Roast the paneer on medium flame until it turns light golden brown. Keep stirring so the paneer roasts evenly.
Transfer the roasted paneer into warm water and soak for a few minutes. This keeps the paneer soft and removes excess oil.
In the same pan, add onion and saute until it softens.
Add ginger, garlic, green chilli and cashew.
Saute until the onion turns golden brown. Cashew helps make the gravy thick and creamy.
Add palak and saute until it shrinks.
Cool the mixture completely. Transfer it to a mixer jar.
Add mint and coriander. This gives the special Hyderabadi flavour.
Blend to a smooth green paste, adding water if required.
In a bowl, take curd and add masala powder.
Mix well and make a smooth lump free curd mixture. This helps prevent the curd from splitting. Keep aside.
Heat oil in a kadai and saute cumin until aromatic.
Add the prepared green masala paste.
Cook well until the raw flavour disappears and oil starts separating.
Add the curd mixture and stir continuously.
Cover and cook until the oil separates from the sides.
Add salt, cream and the roasted paneer. Drain the water from the paneer before adding it to the gravy.
Cover and simmer for 2 minutes so the paneer absorbs the flavour.
Add kasuri methi and garnish with cream.
Mix gently and serve Paneer Hyderabadi hot with roti, naan or rice.