Cut paneer into bite size cubes. Soak in lukewarm water. This step will soften the paneer and gives it mouth melting texture.
Heat 1 ¼ cup of water. Add onion, cashew, and ginger. Boil for 5 - 6 minutes to soften the ingredients. Turn off the heat. Allow to cool and grind to a smooth paste. Use boiled water if required.
To prepare the gravy, heat Ghee in a kadhai over medium flame. Add sliced ginger. Fry for a minute or till ginger turns light pink in color.
Add the onion paste and fry the paste stirring continuously. Till oil starts separating from the masala.
Once the Ghee gets separated from the masala add black pepper, garam masala, half of kasuri methi, and stir to combine. Cook for 10 - 20 seconds.
Next, add milk. Stir to combine. Allow the milk to simmer for 3 - 5 minutes or till the gravy thickens. We need a thick, creamy gravy.
Once the gravy thickens, add paneer cubes, leftover kasuri methi, and salt to taste. Mix nicely. Cover the pan with a lid. Cook paneer kali mirch for 5 - 6 minutes.
Garnish with fresh coriander leaves and
Serve paneer kali mirch warm with paratha or naan.