For making the Matar Paneer Masala paste

Heat peanut oil in a pan and add in the whole pod of garlic and the green chillies. Add in the sliced onions and the cashews. Saute for a few minutes till the onions are soft.
Add in the tomatoes and the sugar. Make sure to deseed the tomatoes. Mix well. Cover the pan with a lid and cook on a low flame for five minutes till the tomatoes are soft and mushy.
Let the mixture cool a bit. Grind this mixture to a smooth paste. Set aside.

For making Dhaba Style Matar Paneer Gravy

Heat oil in a pan and add in the cumin seeds. Let the cumin seeds crackle. Add in the finely chopped onions and saute for a couple of minutes.
Turn the flame of the gas stove to low. On a low flame, add in the red chilli powder, turmeric powder and the garam masala. Saute on a low flame for a few seconds. Add in the boiled peas and the salt. Add in the butter. Cook for a minute.
Add in the ground masala paste and a cup of water. Let the mixture cook on a low flame for a couple of minutes.
Add in the paneer and cook for a minute more to heat up the paneer.
Finally garnish the gravy with coriander leaves.
Serve hot.