In a large skillet or wok, heat oil. Add cumin seed and fry until they start to change color and turn fragrant. Add onions and saute until softened. Add ginger garlic paste and fry for 1 more minute.
Add tomatoes, tomato paste, turmeric, coriander, fenugreek and chile. Stir to combine. Cook for 5 minutes on high heat, until tomatoes soften and turn mushy.
Remove pan from heat. Using an immersion blender, puree the tomato-onion mixture. Alternately, you can transfer to a food processor or blender and puree. Return to the pan. It does not have to be completely pureed. It's good if it remains a little chunky so that the sauce has texture.
Add paneer and salt. Cook on medium heat for 5 minutes.