Dry roast raw skinless peanuts on the pan on low - medium heat. Once they start changing color to light brown (in about 2 to 5 minutes) and become fragrant remove them in a bowl and set aside.
Add oil to the pan on low-medium heat. Moreover, let the oil heat up. Next add in cumin seeds, fresh minced garlic and serrano peppers. Let them sauté for a minute until the cumin seeds splutter. Then add cilantro, coconut and sauté for an additional 2 to 3 minutes until the coconut becomes fragrant. Keep stirring. Transfer to the bowl with the peanuts and let the mixture cool down.
After the mixture has cooled, place everything in a blender, add salt and blend coarsely.
Mix the blended mixture with Greek yogurt. Dice the paneer in 2 to 3-inch pieces. Throw the chopped paneer in the marinade. Additionally, let the paneer marinate for 30 minutes.
When you are ready to cook, grease the air fryer basket with oil. I grease mine by rubbing, brushing, or spraying, a little bit of oil on the bottom grate. Furthermore, follow your air fryer directions for preheating to 350°F for 5 minutes. Finally, when it’s preheated, working in batches, place the paneer in a single layer.
Air fry at 370°F for 7 minutes.
Remove the paneer from the air fryer and serve.