Dice the paneer into 1-inch cubes and slice the mushrooms. Finely chop the onion, mince the garlic, and grate the ginger. Chop the tomatoes.
Heat oil in a non-stick pan over medium heat until shimmering. Add the chopped onions and a pinch of salt, sautéing for about 8-10 minutes until they turn golden and fragrant, with a slight caramelization.
Add the minced garlic and grated ginger to the onions. Cook for 1 minute until fragrant, listening for a gentle sizzle and noticing the aroma filling the air.
Stir in the turmeric, chili powder, and garam masala. Toast the spices in the oil for about 30 seconds until they release a smoky, fragrant aroma, then add the chopped tomatoes.
Cook the tomato mixture for about 10 minutes, stirring occasionally, until it becomes jammy, thick, and fragrant with a deep red color.
Add the sliced mushrooms to the pan. Cook for about 5-7 minutes until they release juices, turn golden, and develop a rich, earthy scent.
Gently fold in the paneer cubes, making sure they are coated with the spicy gravy. Cook for another 5 minutes, allowing the flavors to meld and the paneer to warm through.
Pour in a splash of cream or coconut milk for extra richness. Stir well and cook for 2 more minutes until the sauce is glossy and fragrant, adjusting seasoning if needed.
Turn off the heat and garnish with freshly chopped coriander. Let the curry rest for a few minutes to allow flavors to settle before serving.
Serve hot with basmati rice or warm naan to enjoy the rich, aromatic flavors and tender ingredients in every bite.
