Crumble the paneer into a small bowl, breaking it into small, crumbly pieces with your fingers or a fork. Set aside.
Heat a non-stick pan over medium heat and add the oil. Once shimmering and fragrant, add the cumin seeds and let them crackle for about 30 seconds.
Add the finely chopped red onion to the pan. Sauté, stirring occasionally, until it turns translucent and slightly golden, about 3-4 minutes. The aroma should deepen and onions should soften.
Stir in the chopped green chili and cook for another minute until fragrant, stirring constantly to prevent burning.
Add the diced tomatoes to the pan and cook until they soften and release their juices, about 2-3 minutes. The mixture should look saucy and vibrant with bright colors.
Sprinkle the turmeric and salt into the mixture. Stir well to evenly coat the vegetables with spices, releasing a warm aroma.
Gently fold in the crumbled paneer, reducing the heat to low-medium. Mix carefully so the paneer doesn’t break apart too much, and cook for 2-3 minutes until fragrant and heated through.
Check the texture; it should be crumbly yet moist, with a fragrant aroma. If it looks dry, add a splash of water or a squeeze of lemon to add moisture and brightness.
Remove from heat, then stir in chopped cilantro and a squeeze of lemon for a fresh, tangy finish.
Serve immediately with warm bread, chapati, or paratha, and enjoy the fragrant, crumbly yet juicy paneer bhurji.