Heat oil in a pan or kadai.
To it, add finely chopped garlic and cook till raw smell goes off.
Next, add diced onion. Mix well. Cook on a high flame for 2 mins.
Also, add diced tomatoes and capsicum. Mix well. Cook for2 mins on a high flame.
Lower the flame and add turmeric powder, red chilli powder, salt and paneer masala. Mix well.
To prevent from burning, add a dash of water so that spices do not burn.
Next, and add curd and mix well.
Finally, add paneer cubes. Mix well.
Serve hot with roti or paratha.