Heat oil in a pan over medium heat.
Add the chopped onions and cook until they become soft and slightly golden. Stir often so the onions do not burn.
Add the fresh tomato puree and mix well with the onions.
Cook the onion-tomato mixture for a few minutes until it starts to thicken.
Add salt, turmeric powder, cumin powder, and coriander powder. Mix everything well so the spices combine properly with the masala.
Continue cooking the mixture until it thickens and the oil starts to separate slightly from the masala.
Add the paneer cubes gently and mix carefully so they do not break.
Pour in some water to adjust the consistency of the gravy.
Cook for a few more minutes on low to medium heat. The paneer will start to absorb the flavors of the gravy.
In a small pan, lightly heat the kasuri methi for a few seconds.
Crush the warm kasuri methi gently between your palms and add it to the paneer masala.
Mix once, turn off the heat, and serve hot.