In a wok, heat oil and add chopped onion. Fry it till it is light golden in color.
Add ginger-garlic paste and tomato puree. Cook for 1-2 minutes on a medium flame.
Add red chili powder, turmeric powder, and salt. Cook for another 1-2 minutes on a medium flame.
Add cubed onion.
Cook for another one minute.
Add cubed capsicum and cook for 30 seconds.
Add cubed tomato and water. Cook covered till it comes to boil on a medium flame for 3-4 minutes. Open, add fenugreek leaves and garam masala powder.
Add Paneer cube and mix it well. Cook, it covered for 1-2 minutes. Delicious Kadai paneer is ready to serve. Serve hot with chapatti and rice.