A kadai is a deep, thick, circular cooking pot with a rounded bottom similar to a wok. Traditionally kadai made of cast iron were used but today they are even made of stainless steel. The `kadai` is used for deep frying. Some gravy based dishes are also made in a kadai. And the paneer kadai is one such dish.
Paneer kadai has soft chunks of paneer immersed in a spicy tomato-onion based masala. They are usually semi dry but variations can be made as per taste. The dominant spices in a kadai gravy is coriander and dry red chillies. They are both lightly roasted and pounded in a mortar and pestle or a mixer coarsely and added to gravy. Capsicum is another ingredient that is a must in a kadai gravy.
While there are days I make a kadai gravy with freshly ground tomato paste, I sometimes rely on this simplified version for equally satisfying results. Here you may pound the the coriander-red chillies and add or if short of time opt for chilli powder and coriander powder straight from your spice rack. This dry kadai masala of coriander and chillies can be made in larger quantities and stored for few days and use when required.
And not to forget, this dish is perfect for your buffet table!
Paneer Kadai Recipe
- Total Time: 35 minutes
- Yield: 4 1x
Description
Paneer kadai has soft chunks of paneer immersed in a spicy tomato-onion based masala.
Ingredients
- Paneer cubes - 200 gms
- Capsicum - 1 small
- Green chillies -1-2
- Vegetable oil - 3-4 tbsp (45-60 ml)
- Onions - 2 medium to big
- Ginger garlic paste - 1 tsp
- Dry red chilli - 1, chopped and deseeded
- Tomato puree -150 ml (tetra pack) OR about 3-4 big tomatoes pureed to get 1 cup
- Turmeric powder - 1/4 tsp
- Garam masala powder - 1 1/4 tsp (or kitchen king masala)
- Red chilli powder - 1 tsp
- Coriander powder - 1 3/4 tsp
- kadai masala (recipe below) - optional
- Salt, sugar - to taste
- Kasuri methi - 1 tbsp plus 1/2 tsp
- Cashew paste -3 tbsp OR cream 3 tbsp
Instructions
- Wash capsicum and cut into medium cubes. Slit the green chillies. Peel and cube onions and grind to a paste. Grind about 2 tbsp cashew to a paste with little water if adding.
- Heat 1-2 tsp oil in a thick bottom pan/ non stick pan (else paneer will stick to pan), sauté together capsicum, slit chillies, paneer cubes and 1 tsp kasuri methi lightly till you get the aroma of capsicum. Remove and set aside.
- To make gravy, heat 3 to 4 tbsp oil in a saucepan or kadai. Add onion paste and fry till oil starts to separate. Add ginger garlic paste, chopped dry red chilli and fry 1 minute.
- Add turmeric, coriander powder, chilli powder/ kadai masala if adding, sauté 30 seconds.
- Add tomato puree. Mix and sauté for 5 mins or till oil separates.
- Add cashew paste if adding, little water for some gravy and cook for a minute.
- Add fried paneer-capsicum, salt, 1/2 tsp sugar, kasuri methi, garam masala. Stir and simmer for few mins. Do not cook for too long.
- Lastly add cream if adding, mix once and remove from heat.
- Serve hot with naan, kulchas, tandoori rotis, phulkas, roomali rotils, chapathis. Or try serving on top of toasted bread too!
Notes
- For homemade kadai masala, heat 1 tbsp oil (or dry roast) and fry 1 tbsp coriander seeds and 4 to 5 whole kashmiri dry red chillies till aroma emits/ roasted lightly.
- Remove from heat, cool and grind to coarse powder without water.
- Add to kadai gravy as per taste.
- In that case adjust/ add chilli and coriander powder only if needed.
- Prep Time: 15 mins
- Cook Time: 10 mins
- Category: Main Course
- Cuisine: Indian
Nutrition
- Serving Size: 1 serving
- Calories: 310
Find it online: https://honestcooking.com/paneer-kadai-recipe/
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Frequently Asked Questions
What is a kadai and do I need one to make this dish?
The article explains that a kadai is a deep, thick, circular cooking pot with a rounded bottom similar to a wok, traditionally made of cast iron and now also stainless steel. You do not need an authentic kadai — the recipe notes that using a non-stick pan prevents the paneer from sticking, so a heavy-bottomed saucepan or non-stick pan works fine.
What makes kadai masala distinct from regular curry powder?
According to the article, the dominant spices in a kadai gravy are coriander seeds and dry red chillies that are lightly roasted and coarsely pounded — not finely ground. The notes provide the recipe: heat 1 tbsp coriander seeds and 4–5 whole Kashmiri dry red chillies in oil until aromatic, cool, then grind coarsely without water.
Why saute the capsicum and paneer separately before adding them to the gravy?
The recipe instructs you to saute the capsicum, slit chillies, paneer cubes, and 1 tsp kasuri methi lightly in a separate 1–2 tsp of oil just until the aroma of capsicum is released, then set aside. This prevents the capsicum from going soggy and keeps the paneer intact during the longer gravy-cooking step.

I hav tried this. Very yummmmmmmy!!!!!.
Hi Prathima,
I tried out the recipe today. It came out pretty well and my family relished the dish. Thanks a lot for your post. Hope you would post more stuffs. :-)
This is an excellent recipe. It tasted soo good. Everyone loved it. Thank you.
Hi prathima
I firstly thanks to you forposting your receipe.
I tried your receipe and it come so good that all love it.
And i am looking forward for some more new receipes from you.
Keep. It up :)
Hello Prathima,
I am going to to try it.I hope it taste as good as your recipe that catches my eye.
I love to cook and would love to give you my feed back the soonest, before that I would like to remind you that I will be frank with my opinion.
Cheers
viji
Awesome recipe!!! Tried this today and my girlfriend loved it. She could not believe that I made this and not ordered from a restaurant :D
Thanks!!!
Thank u so much Balbinder for taking time to give your feedback..and glad it turned out well.. :) Have a great weekend ahead..