Heat 1 tablespoon oil in a large skillet and pan-fry paneer cheese until slightly browned, about 5 minutes. Remove from skillet and set aside. Heat 1 tablespoon oil over medium heat and cook onion until soft and translucent, about 5 minutes. Add cumin and coriander; stir-fry for 1 minute. Add tomatoes, ginger, garlic paste, red pepper flakes, turmeric, chili powder, and garam masala. Bring to a simmer and cook for about 10 minutes. Remove from heat and let cool slightly.
Carefully pour about 3/4 of the mixture into a blender. Cover the top of the blender with a kitchen towel and blend until smooth. Pour back into the skillet. Add water, peas, and paneer. Cover, bring to a boil, reduce heat, and simmer until flavors are well combined, about 10 minutes.
