Heat oil in a pan and sauté onions until golden brown.
Add ginger-garlic paste and cook for a minute.
Add tomato puree, red chili powder, garam masala, and salt. Cook until oil separates.
Add paneer cubes and kasuri methi. Mix well and cook for another 5 minutes.
Heat a piece of charcoal until red hot. Place it in a small bowl and put the bowl in the pan. Drizzle a little oil on the charcoal and cover the pan immediately to trap the smoke. Let it sit for 5 minutes.
Remove the charcoal and serve hot with naan or rice.