Prep the paneer: Crumble the paneer into small, soft pieces and set aside. If refrigerated, soak in warm water for 5 minutes to soften.
Heat oil: In a non-stick pan, heat oil or butter over medium flame. Add cumin seeds and let them sizzle.
Add aromatics: Toss in the chopped onions and sauté until golden. Add green chili and stir for 30 seconds.
Build the base: Add tomatoes, turmeric, chili powder, coriander powder, and salt. Cook until the tomatoes break down and the oil separates from the masala.
Add paneer: Mix in the crumbled paneer and cook for 3–4 minutes. Add milk or cream to keep it soft and moist.
Finish it off: Sprinkle garam masala and chopped cilantro. Mix gently and turn off the heat.
Serve hot: Squeeze fresh lemon juice on top and serve with roti, naan, or toasted bread. For a cozy pairing, try it with Pureed Vegetable Soup Recipe or Chhole Masala Recipe