Start with grating the paneer in a bowl. Set aside.
Place a pan on medium heat and add ghee to it. Once it melts completely, fry cumin seeds and onion in the melted ghee.
Now fry garlic, ginger, and green chili in it.
Next, add the tomatoes, chili powder, coriander powder, and turmeric. Use a spatula to ensure everything cooks fine.
Add some water to the mixture and cook for 5 to 7 minutes.
Now add the capsicum, paneer, and salt.
Add the cheddar cheese and keep cooking for 3 to 5 minutes.
Turn off the heat and garnish with fresh coriander and a tablespoon of butter.