Heat the oil in a heavy-based saucepan or karahi over a medium heat and add the cumin seeds, whole dried chilli and about two-thirds of the shredded ginger, and fry for 30 seconds until aromatic.
Add the onions and green chilli and fry for 5–6 minutes, or until the onions are just softening but not browned and still have a little crunch. Add the peppers, salt, turmeric and chilli powder, and fry for a further 3–4 minutes.
Lower the heat, add the paneer to the pan and gently stir everything together for about five minutes, then add the tomato and heat through. Stir in the vinegar, ground cumin and garam masala, scatter with the remaining shredded ginger, and serve.
Paneer is easier and easier to get now, and available in most larger supermarkets. I have on occasion used the Cypriot cheese halloumi, which is similar though saltier.