Heat 1 teaspoon of butter in a non stick/ceramic pan and add sliced onion to it. Simultaneously add green chilies and chopped tomatoes as well.
Cook these on medium heat for 6-7 minutes , till light brown spots starts to appear. Keep stirring in between.
Switch off the heat and let these cool off.
With the help of a blender, blend them into a smooth paste.
Now put up a pan on slow heat and pour the blended onion and tomato paste in the pan. Let it cook for 3-4 minutes and add 4 tablespoon of water.
Let it cook for another minutes or so and add skim milk, almond paste as well as paneer cubes.
Cook, it covered for 5-6 minutes and serve paneer butter masala hot.
