Dry roast the coriander seed and grind it coarsely.
Grind ginger and garlic to a paste.
Cut onion and tomato finely.
Heat oil in a pan, add cinnamon, cloves, red chillies and half the quantity of coriander seed powder. Saute for sometime.
Add onion pieces and saute for a minute. Put ginger garlic paste and saute it for sometime. Put the capsicum pieces into it and let them cook for a while
Put coriander powder, chilli powder, turmeric powder and mix them well.
Add tomato and salt. Mix and let them cook until they are mushy and the oil separates.
Keep the paneer ready to use by thawing them in warm water and cutting into small pieces.
Put the paneer pieces and half a cup of water to it.
Let cook for sometime. Garnish with coriander powder.
Kadai Paneer is ready to serve.