Paneer malai kofta is a luxurious vegetarian dish with creamy paneer-potato dumplings in a cashew-cream sauce. This rich, protein-packed vegetarian curry is a beloved family celebration dish.
Peel and boil the potato until tender; mash and cool completely before combining with crumbled paneer, 2 tbsp cornstarch, 0.5 tsp salt, and raisins.
Shape mixture into small balls (koftas), dust lightly with remaining cornstarch, and refrigerate for 20 minutes for firm texture.
Heat oil in a skillet on medium heat (do not overheat to smoking point). Shallow-fry the koftas in batches until golden-brown all around, turning gently. Drain on paper towels.
For the sauce, soak cashews in hot water for 15 minutes. Blend soaked cashews, onion, tomatoes, and green chili until smooth.
Wipe the pan and heat 2 tbsp oil over medium heat. Add blended paste and cook, stirring frequently, until oil separates (about 8 minutes). Add all seasonings and stir for 1 minute.
Dilute heavy cream with 3/4 cup water, then add to the sauce base. Simmer on low heat for 5 minutes, stirring gently.
Just before serving, arrange fried koftas in the serving bowl. Pour hot malai sauce evenly over the koftas, garnish with chopped cilantro, and serve immediately.