Slice the paneer in about 1/8-inch-thick and about in one inch squares.
Mix ginger, salt, pepper, coriander, and yogurt with sliced paneer in a bowl, cover it and let the mixture marinate for at least an hour. It is better to have the paneer marinate in a refrigerator.
Blend tomatoes and green chilies to make a puree and keep aside.
Dissolve the corn starch in 2 tablespoons of water and keep aside. Corn starch is used to give thickness to gravy.
Heat 1 tablespoon of oil in flat frying pan on medium heat, making sure to oil the entire surface of the pan.
Next put the marinated paneer in frying pan and gently stir-fry for about 3 to 4 minutes until paneer becomes light brown. Take out the paneer in a bowl and use the same frying pan to make the gravy.
To prepare the gravy, add 1 table spoon of oil in a frying pan. Test the heat by adding one cumin seed to the oil; if seed cracks right away oil is ready. Add cumin seeds and asafetida after seeds crack add bay leaves and stir for a few seconds.
Add the tomato puree, coriander powder, turmeric, red chili powder, sugar, and cook for about 4 minutes on medium heat.
Add the corn starch mix stir for few minutes till the sauce thickens.
Add the stir-fry paneer in the tomato gravy and let it cook for 3 to 4 minutes on low medium heat.
Turn off the heat and add cilantro and garam masala stir slowly and cover the pan for few minutes.