Except for the turmeric, salt and sugar, dry roast all the other ingredients in a pan on medium-high heat.
Add the paneer cubes and mix well.
Now, add the curd and a very small quantity of water. Cover and allow to cook until the curry begins to boil.
Uncover and continue cooking until the curry reaches desired consistency.
Top it with some crushed dry fenugreek leaves i.e Kasoori methi and serve hot with some naan bread.