For this recipe, the most important thing is to mince the onions and tomatoes relatively finely. You don't want to purée them, but you don't want large chunks. I used my Kuhn Rikon Pull chopper to get small, even pieces.
Add all the ingredients listed under Pressure cooking to the inner liner of your Instant Pot and mix well.
Cook at high pressure for 5 minutes, and allow it to rest undisturbed for 5 minutes. Then release all remaining pressure.
Turn your pot on Sauté. Add remaining 1/2 cup of water now. (Please read the post to understand why the two stage water additions).
Add the remaining ingredients and allow them to heat through, stirring occasionally, for about 5-8 minutes.
Although I have provided nutritional information, I don't entirely trust it as it will depend a lot on the type of paneer you use. Please calculate macros based on your final ingredients.
This recipe was made in a Mini and a 6-quart duo. If you use an 8-quart, either double the recipe or add an extra 1/4 cup water to the pressure cooking cycle.
If you want to add other vegetables, they need to either be veggies that will cook on Sauté (such as corn), vegetables that need 5 minutes of pressure cooking time, or vegetables you cook PIP in five minutes (such as cauliflower florets)