Heat oil and add garlic paste. As it turns light brown, add chopped onion. Fry onion until the onion becomes soft and translucent.
Add poppy seed paste, green chill paste, coriander powder, salt, sugar and cook it for about 5 minutes.
After 5 minutes, add green peas and yogurt. Cook the same for about 3 to 4 minutes. Once the green peas are soft, add paneer cubes and give a stir.
Add 1/2 cup of warm water and let it cook for 5 minutes. After 5 minutes, add cashew nut paste and cook for about 7 to 8 minutes.
Check seasoning and garnish it with some chopped coriander leaves and give a stir. Malai Matar Paneer is ready to serve.