How to connect Perplexity MCP to Cursor in its new UI?

I'm not getting the option to integrate MCP server like this on cursor even though i'm on the Pro plan. I'm only seeing the Tools & Integrations tab on the left and the option to add a custom mcp server, I try adding the following json but it says no tools or prompts - see second screenshot:

{

"mcpServers": {

"perplexity-ask": {

"command": "npx",

"args": [

"-y",

"server-perplexity-ask"

"env": {

"PERPLEXITY_API_KEY": "YOUR_API_KEY_HERE"

}

What do I need to do?

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