1. Peel and cut the potato into 6-8 pieces. Keep soaked in water. Cut paneer into triangles or squares.
2. Heat ghee on medium heat in a heavy bottom pot. Once nicely warm, add the whole spices. Heat for 10 seconds and then add the onions. Cook onions until they brown evenly.
3. Add the ginger & garlic and cook for a minute or so then add the powdered spices - coriander, turmeric, red chilli powder. Cook for 2 minutes in oil until you smell a toasty aroma.
4. Next add the tomatoes, sugar and salt to the pot. Cook for 5-6 minutes until you see oil separating on the sides and the tomatoes are beginning to pulp. Add the potatoes and mix well. Sauté the potatoes for 3-4 minutes with the masala.
5. Add 1 cup hot water, mix. Taste and adjust the salt of the masala and bring it to a slow boil. Once boiling, reduce the stove to medium low and cover the pot. Let cook on medium heat for 6-8 minutes or until the potatoes are almost cooked.
6. Once the potatoes are fork tender, add the paneer, kasuri methi and garam masala. Mix and cover again and let cook for another 5-8 minutes until potatoes are cooked through and the paneer has softened.
7. Let rest for 20 minutes before serving. Serve garnished with chopped cilantro.