Peel and cut the potato into 6-8 pieces. Keep soaked in water. Cut paneer into triangles or squares, as you wish, do not cut too thick or too thin.
Heat ghee on medium heat in a heavy bottom pot. Once nicely warm, add the whole spices. Crackle for 10 seconds and then add the onions.Cook onions till they brown evenly.
Add the ginger, garlic and cook for a minute or so till you smell a nice aroma.Then add the powdwered spices - coriander, turmeric, red chilli powder. Cook for 2 minutes in oil until you smell a toasty aroma. If you feel that the spices are getting dry, add a splash of water.
Next add the tomatoes,sugar and salt to the potCook for 5-6 minutes till you see oil seperating on the sides and the tomatoes are pulpy. Add the potatoes and mix well. Saute the potatoes for 3-4 minutes with the masala.
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 95 percent cooked.
Once the potatoes are fork tender, add the paneer, kasuri methi, cumin powder and garam masala. Mix and cover again and let cook for another 5-8 minutes until poatoes are cooked through and the paneer has softened.
Let rest for 20 minutes before serving. Serve garnished with chopped cilantro.