Make coconut paste by combining coconut, ginger, chile, cashews and 2 tablespoons of water in a food processor. Grind to a paste.
Heat oil. Add cumin seed. When they start to change color, add onion. Saute until they start to change color.
Add garlic paste, coriander and pepper. Saute for 2 minutes, stirring constantly.
Add coconut paste and white pepper. Saute for 4-5 minutes, until paste is thickened. Add 1-2 tablespoons of water as it sticks to the pan.
Add 1 1/3 cup water. Bring to the boil. Add paneer, fenugreek and garam masala. Simmer on medium heat for 5 minutes.
Add cream and salt. Stir to combine. Simmer for 3 more minutes.