Combine ingredients of marinade into a medium mixing bowl. Add paneer and toss to coat with marinade. Cover with plastic wrap and let it marinate for 30 minutes to an hour.
Line a baking sheet with aluminum foil and spray with non-stick cooking spray. Spread paneer evenly on sheet and bake until light golden brown, 10 to 15 minutes.
Heat oil or butter in a wok or a frying pan until simmering. Sauté garlic-ginger paste with spices until fragrant, 2 minutes. Add tomato sauce, kasuri methi and stir to combine everything. Season with salt and sugar. Let it cook for 2 to 3 minutes.
Add the baked paneer and stir with the gravy. Adjust the seasoning and let paneer cook with gravy for 5 minutes, stirring occasionally so that gravy does not stick to bottom. Add heavy cream, stir and let the gravy cook for another 2 minutes.
Garnish with cilantro and serve warm with Nan or Paratha.
Recipe by Lovely Masala at http://www.lovelymasala.com/paneer-tikka-masala/