In a sauce pan add water, little salt and bring to boil. Add the baby corn and cook over medium heat until it becomes soft, about 5-8 minutes.
Drain the water and wash in cold water. Trim the ends and cut into 1-inch long pieces. Set aside.
In a kadai, heat 2 tsp oil and add onion. Fry till onion turns translucent. Then add ginger-garlic paste and fry for 2 minutes.
Add capsicum, tomato and fry till the tomatoes have softened. Cool and grind with cashews to a smooth paste.
In the same kadai, heat 1 tbsp oil and add cumin seeds. When it sizzles add the ground paste and cook covered in medium heat for 8-10 minutes, stirring occasionally.
Add turmeric powder, coriander powder, red chilly powder, garam masala, kasuri methi and fry for 2-3 minutes.
Add the baby corn, salt and mix. Cover and cook for 2-3 minutes. Then add milk, cream and simmer for another 2-3 minutes.