Add Plain Yogurt (1/2 cup) in a mixing bowl. To that add Ground Turmeric (1 teaspoon), Onion Powder (1/2 tablespoon), Garlic Powder (1/2 tablespoon), and Salt (to taste). Mix it all together.
Cut the Paneer (150 gram) in any shape you want, and add them to the bowl.
Coat the cubes well with the spiced yogurt mixture and marinate it for 30 minutes.
Heat Ghee (1/8 cup) in a pan and shallow fry the cubes till they turn light golden. Do not over-fry as it can become rubbery fairly quickly. Take the fried paneer onto a plate and keep it aside for now. Also, reserve the leftover yogurt mixture.
In a pan, add Cooking Oil (1 teaspoon) and once it's hot enough, Cumin Seeds (1 tablespoon), Whole Coriander Seeds (1 tablespoon), and Fenugreek Seeds (1 teaspoon) for 30-40 seconds or till it releases a nice aroma.
Then add Tamarind Paste (1 tablespoon), Dried Red Chili Pepper (4), and Garlic (6 clove). Continue to toast these for 1-2 minutes or till the garlic turns golden.
Next, you need to add the Coconut (1/4 cup) and toast for another 2 minutes or until the coconut turns light brown.
Take it all out onto a plate and let it cool down completely. Then transfer it to a blender and grind it into a smooth creamy paste by adding little water.
Use the same pan in which you fried the cheese earlier. In the remaining Ghee (1/8 cup), add the ground masala and fry it for 3-4 minutes.
Then add the Bell Pepper (1) and continue to saute for another 2-3 minutes.
Add the leftover yogurt mixture to the pan as well. Mix and continue to cook till it comes to a boil. Add Salt (to taste) and Granulated Sugar (1 teaspoon) to balance the sourness and spiciness.
Lastly, add the fried paneer cubes and mix it into the gravy.
Serve hot after garnishing it with some Fresh Cilantro (2 tablespoon).