"Paneer tikka masala is a favorite dish both in North and South India although the dish itself may have originated in North India. Traditionally, paneer is roasted in a tandoor or a clay oven, but here you use your oven. The aroma of spices and paneer cooking in the oven is mouthwatering and makes one feel hungry right away. This recipe replicates the taste of paneer tikka masala served in restaurants while eliminating cream and milk that is typically used."
Soak 8 to 10 wooden skewers in water while you prepare the kebabs.
Process garlic and ginger in a food processor until a smooth paste forms.
Combine yogurt, mustard oil, lime juice of 1/2 lime, 1 1/2 teaspoons fenugreek leaves, 1 teaspoon garam masala, 1/2 teaspoon cayenne, and 1/2 of the ginger-garlic paste in a bowl. Whisk until smooth. Add paneer, green bell pepper, red bell pepper, and onion. Stir until coated.
Preheat the oven to 400 degrees F (200 degrees C).
Thread the coated paneer, peppers, and onion onto the soaked skewers. Place kebabs in a baking dish.
Bake in the preheated oven until kebabs are golden brown, 25 to 30 minutes.
Soak cashews in a bowl of hot water for 10 minutes; blend as finely or coarsely as desired.
Heat olive oil in a large saucepan over medium-high heat. Add cumin seeds; cook until sputtering, about 1 minute. Add remaining onion; cook and stir until translucent, about 5 minutes. Add the remaining ginger-garlic paste, 1 tablespoon fenugreek leaves, and 1/2 teaspoon garam masala. Cook and stir until flavors blend, about 2 minutes. Stir in tomatoes; cover and cook until tomatoes break down, about 5 minutes.
Stir the ground cashews into the saucepan with the tomato mixture. Add juice of 1/2 lime, coriander, 1 teaspoon cayenne, turmeric, and salt. Let simmer until sauce is thickened, adding some water if sauce gets too dry and sticks to the pan, about 5 minutes more. Add the baked kebabs to the sauce. Stir to coat evenly.