Heat a non-stick griddle/tawa and toast paneer cubes with 1 tbsp oil till they turn light brown on all sides. Keep this ready in a separate bowl.
Add 1 tbsp of oil in a non-stick frying pan and when oil is warm, add cumin seeds and saute for few seconds till they crackle.
Now add sliced onions and saute till they turn light brown.
Add tomato puree and saute for few minutes till oil separates from the gravy.
Now add chopped capsicum and half cup of water and cook it for 3 minutes on low flame. Keep stirring in between.
Now add turmeric powder, garam masala, jalfrazie masala, sugar and salt and mix it well.
Add paneer cubes and cook on low flame for two minutes.
If you feel the the gravy is too thick, add little water. Transfer into a bowl and serve it hot with tandoori roti, phulkas.