In a pan pour 2 cups water and add in the cashewnuts, cubed bell peppers, cardamom pods, chillies. Bring to a boil over a medium-high heat. Once it comes to a boil, cover pan with lid and cook over a medium-low flame till the bell peppers turn fork tender. Stir in between.
This may take around 20 mins.
2) As it cooks, shallow fry the paneer cubes in few tsps oil till all sides turn a very light golden. Set aside.
Once the bell pepper is cooked, remove from heat and let cool a bit. Then blend the mixture to a smooth puree along with the cooking water. You can do the blending process in 2 batches too if the jar is too small.
3) Pour the smooth puree back to pan, add in the salt, chilli powder, paneer, cilantro or kasuri methi. Cover and simmer for 5 - 7 mins to let the paneer take in all the flavours of the spices and herb.
Serve hot with warm rotis, chapathis or as the book says, tastes good even with some buttered toasts!
Note
Do not fry the paneer too much. They will turn chewy. If they turn too dark, you can dip them in some salt water before adding to any gravy. This will make them soft.