In a medium sized pot, heat the oil and add the chopped onion. Fry until it’s a light golden brown.
Add the ginger garlic paste and fry for about 45 seconds or so, while stirring continuously.
Now add the spices and cook for a minute or so. Add some water, and cook for about 30 seconds.
Now add the chopped tomatoes and cook for a few minutes on high heat. Add about 1/4 cup water, lower the heat, and cover the pot. Cook for about 10 minutes or so, until the tomatoes have softened and are cooked through.
Cook on high flame, while stirring, for another 5 minutes or so until the oil separates from the curry.
Add the fried paneer.
Now add the sugar, water and frozen peas. Cook for a few more minutes until the peas are cooked through.
Finish with garam masala and chopped coriander. Serve with white rice or naan.