Cut onions, tomatoes, shimla mirch & paneer into small pieces and collect them in different bowls. We'll need them later.
Add refined oil in kadhai. (This recipe has to be made in kadhai for better results)
Add cumin seeds & turmeric powder in the oil and cook for few minutes till the cumin seeds turn into dark brown colour.
Then add onions into it and fry till they turn into dark pink colour.
Then add coriander powder, anardana powder, salt & red chilli into it.
After 2-3 minutes, add tomatoes into it and cook till it looses oil. (i.e. for atleast 5-7 minutes)
Then add shimla mirch into it and cook it. Cover the pan for few minutes and then cook it without cover. You need to mix the ingredients from time to time.
After the shimla mirch is cooked up, add paneer into it and cook for 3-4 minutes.
Your kadhai paneer is ready.
For garnishing, add grated paneer over it before serving.