In a pan dry roast coriander seeds, sesame seeds, fennel seeds and black pepper until nice aroma comes. Keep aside to cool.
In the same pan, roast the peanuts. Allow to cool. Grind everything together to a fine powder.
Puree the tomatoes and set aside. Coarsely grind green chilly, ginger and garlic.
De-seed the capsicum and cut into dices.
Add 1 tsp oil to a pan on medium heat and add the diced capsicums. Fry the capsicum till they become soft. Set aside.
In the same pan add 1 tbsp oil and add jeera. When it sizzles, add the green chilly-ginger-garlic paste and fry for a minute.
Now add the onions and fry till the onions become golden.
Add turmeric powder, red chilly powder, ground peanut masala powder, kasuri methi and mix well. Fry this for around 3-4 minutes.
Then add the tomato puree, salt and saute this till the tomato mixture becomes thick.
Now add 1/2 cup water and bring to boil. Simmer and add garam masala and capsicum.
Let capsicum simmer in the gravy for 3-4 minutes, then remove from heat.