Prepare the koftas: In a mixing bowl, combine grated paneer, mashed potatoes, cornflour, garam masala, red chili powder, and salt. Mix well to form a smooth dough.

Shape the mixture into small round balls or oval-shaped koftas. Ensure they are compact and without cracks to prevent breaking while frying.

Heat oil in a deep pan over medium heat. Gently slide the koftas into the hot oil and fry until golden brown. Remove and drain on paper towels.

Prepare the gravy: Heat butter in a pan. Add chopped onions and sauté until golden brown. Add ginger and garlic, sauté for another minute.

Add tomato puree and cook until the oil separates. Stir in turmeric, coriander, and cumin powder. Cook for 2-3 minutes.

Add cashew paste, fresh cream, and milk. Simmer the gravy on low heat for 5-7 minutes until it thickens. Adjust salt to taste.

Gently add the fried koftas to the gravy. Simmer for 2-3 minutes. Garnish with fresh coriander leaves and serve hot with naan or rice.