Start the Instant Pot in sauté mode. Add oil and cumin seeds. Then add diced green chili pepper.
Once the cumin seeds start to splutter, add diced green chili, onion, ginger and garlic. Let this cook for 4 mins until the onions turn light brown.
On the side, grind tomatoes with the cashews. Once the onion is cooked, add the tomatoes paste and spices to the instant pot and cook for another 3-4 mins.
Add the cubed paneer, green peas and water to the instant pot. If anything is stuck to the bottom, deglaze the pot. Change the instant pot setting to manual or pressure cook mode for 2 minutes.
Once the instant pot beeps, quick release the pressure manually. Add garam masala, cream, and kasuri methi. Stir it all gently.
Garnish with cilantro. Mutter paneer is ready to serve.