If you are using homemade paneer, you can crumble it with your fingers easily. If you are using the store bought paneer, you may grate it with a large hole grater.
Heat oil in a thick bottom pan.
Add cumin seeds. When they stop spluttering, add chopped onion.
Stir and let the onions cook till they look transparent.
Add chopped capsicums. Cook for a minute.
Add chopped green chilies, ginger paste. Keep stirring.
Add tomatoes and let cook for about 2 minutes.
Add the crumbled paneer.
Add garam masala, salt and red chili powder (if adding).
Mix well and cook for a minute.
Add chopped coriander leaves. Take off flame.