In a heavy-bottom sauce pan, fry your paneer on medium heat and make sure to keep turning the pieces so they cook evenly on both sides. Cook until golden brown.
In a separate pan, sauté onions in oil until translucent and then add in the sliced jalapeño.
Add the rest of the sauce ingredients and simmer for 5 minutes.
Once your paneer is done, add it in with your sauce, cover with a lid, and cook until all of the water cooks out.
Keep stirring every few minutes so the sauce doesn’t stick to the bottom.