Blend the cashews with 1/4 cup water or vegetable stock into a smooth paste and set aside.
Blend the onions, garlic, ginger and the paprika with 3/4 cup water or vegetable stock. Place the tofu cubes in a bowl and add half a cup of the onion-ginger-garlic-paprika puree to the bowl. Toss the tofu cubes in the puree.
Set the Instant Pot to the saute function. Add the oil and when it's hot, add the tofu cubes. Saute, stirring frequently, about 2-3 minutes. Then add the remaining onion-ginger-garlic-paprika puree, the tomato puree, coriander powder, cayenne and kasoori methi. Add salt to taste, give it a stir, and put the lid on. Set the Instant Pot to cook at high pressure for 10 minutes.
After cooking is complete, release pressure manually after 10 minutes. Open the lid.
If the butter tofu is too thick, you can thin it out with more vegetable stock or water. Stir in the garam masala, cashew cream or vegan butter, maple syrup or sugar and lemon or lime juice. Add more salt if needed. Heat the butter chicken tofu, especially if you added more stock or water, by turning the saute function back on. Once it's warmed through, remove to a bowl, garnish with coriander leaves, and serve hot with naan or roti or rice.