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In a bowl, mix grated paneer, mashed potato, cornstarch, cashews, raisins, salt, cumin powder, and garam masala.
Form small round balls (about 1-1.5 inch size).
For frying: Heat oil in a pan and shallow fry the koftas until golden brown. For air-frying: Brush koftas with oil and air-fry at 375°F (190°C) for 10 minutes, shaking halfway through.
Remove and set aside.
Heat oil or butter in a pan and first go in with the whole spices and let that get fragrant (~30 seconds) then sauté onions, tomato paste and the spices (turmeric, red chili powder, coriander powder, and garam masala) until golden brown.
Blend with soaked cashews and a little water until smooth.
Heat 2 tbsp of oil in a pan and add 2 tsp cumin seeds and toast it before adding in the ginger and garlic. Let that cook for 30 seconds then add in the blended gravy.
Cook for 2 minutes, stirring occasionally, until fragrant.
Stir in cream, salt, sugar (if using), garam masala and kasuri methi. Simmer for 2 more minutes.
Add hot water to adjust the consistency to your liking. Adjust salt accordingly.
Add the fried koftas into the creamy gravy and simmer for 1-2 minutes to absorb the flavors.
Garnish with chopped cilantro and serve hot with naan or basmati rice!