Add cashew paste and mix well. Season with salt. Add ½ cup more water and mix well. Simmer till gravy thickens and reaches required consistency.
Add fresh cream and simmer for 4-5 minutes. Do not let boil.
Add the paneer cubes and simmer for 2 more minutes. Add crushed kasuri methi and mix well.
Remove from flame. Add chopped coriander leaves, lemon juice and mix well gently without breaking the paneer cubes. Serve paneer lababdar hot with rice/roti.