Gather your ingredients: crumble the paneer, finely chop the onion, and dice the tomatoes. Set everything nearby for easy access.
Heat the oil in a non-stick pan over medium heat until shimmering. Add the cumin seeds (if using) and wait until they crackle, releasing a fragrant aroma.
Add the chopped onions to the pan. Sauté for about 3-4 minutes until they turn golden and soft, filling your kitchen with a sweet, caramelized scent.
Stir in the turmeric, garam masala, and chili powder, cooking for 20 seconds until the spices are fragrant and slightly toasted.
Add the diced tomatoes and cook, stirring occasionally, for about 4-5 minutes until they soften and release their juices, creating a bright, fragrant base.
Gently fold in the crumbled paneer, mixing well to coat it with the spiced tomato mixture. Cook for another 2-3 minutes until the paneer is heated through and slightly tender.
Taste and adjust the salt as needed. Squeeze in fresh lemon juice for brightness, then stir to combine all flavors.
Remove the pan from heat and garnish with chopped cilantro. Let the dish sit for a minute so flavors meld and it cools slightly.
Serve hot with flatbread or toast for a satisfying, comforting meal.