Heat oil in a pan and fry the capsicum till lightly fried.
Be careful that it doesn`t burn.
Keep aside in a bowl.
Grind in a mixer tomatoes, onion, ginger and garlic to a fine paste.
In the same oil which the capsicum was fried, add the ground paste and mix for a minute or so.
Add all the masalas one by one, (cumin, coriander power, dry mango powder, garam masala, red chilli powder, turmeric powder) and mix it in well with the ground paste.
Add the fried capsicum and paneer to this paste.
Add the salt and cook till done, constantly tossing it in the tomato masala.
Garnish with freshly chopped coriander leaves and serve with flavoured rice or chapathis.
Note: You may fry one to two slit green chillies along with the capsicum and add it to the masala for extra spice. Also, all the dry spices are to taste and you can vary them according to your preference.