Heat oil in a large frying pan over medium-high heat.
Add garlic. Saute, stirring occasionally, for about one minute or until fragrant.
Add onions, tomatoes and bell peppers (capsicum). Saute for 2-3 minutes or until the onions are soft and bell peppers are tender.
Add oregano and chili flakes.
Season with salt and pepper.
Heat through. Remove from heat. Let the mixture cool completely.
Add the mixture to a food processor.
Add paneer and process to a smooth paste.
Add the paste back to the pan placed over medium-high heat.
Simmer for about 2 minutes. Add a little pasta water if the sauce is too thick.
Add your favorite cooked pasta. Garnish.