To make the kofta, mash the paneer and boiled potatoes in a mixing bowl.
Add cornflour, all-purpose flour, garam masala, red chili powder, and salt. Mix everything well to form a dough.
Divide the dough into small portions and shape them into balls.
Heat oil in a pan for deep frying. Fry the kofta balls until they turn golden brown. Drain them on a paper towel and set aside.
To prepare the gravy, heat oil in a pan and add onions. Saute until they turn golden brown.
Add cashew nuts and melon seeds. Fry for a minute.
Add ginger-garlic paste and saute for a minute.
Add finely chopped tomatoes and cook until they turn soft.
Remove the mixture from heat and allow it to cool. Once cool, blend it into a smooth paste.
Heat oil in a pan and add the blended tomato-onion paste. Cook for a few minutes.
Add Kashmiri red chili powder, turmeric powder, garam masala, and salt. Mix well and cook for a minute.
Add some water to adjust the consistency of the gravy. Cook for a few more minutes.
Add fresh cream and sugar. Mix well and cook for another 2-3 minutes.
To serve, place the kofta balls in a serving dish and pour the gravy over them.
Garnish with a dollop of fresh cream, coriander leaves, and grated paneer.
Serve hot with naan or rice.