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Paneer Kadai Recipe

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5 from 1 review

  • Author: Prathima Rao
  • Total Time: 25 minutes
  • Yield: 4


Paneer kadai has soft chunks of paneer immersed in a spicy tomato-onion based masala.


  • Paneer cubes – 200 gms
  • Capsicum – 1 small
  • Green chillies -1-2
  • Vegetable oil – 3-4 tbsp
  • 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 – ¼ tsp
  • Garam masala powder – 1 ¼ tsp (or kitchen king masala)
  • Red chilli powder – 1 tsp
  • Coriander powder – 1 ¾ tsp
  • kadai masala (recipe below) – optional
  • Salt, sugar – to taste
  • Kasuri methi – 1 tbsp plus ½ tsp
  • Cashew paste -3 tbsp OR cream 3 tbsp


  1. 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.
  2. 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.
  3. 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.
  4. Add turmeric, coriander powder, chilli powder/ kadai masala if adding, sauté 30 seconds.
  5. Add tomato puree. Mix and sauté for 5 mins or till oil separates.
  6. Add cashew paste if adding, little water for some gravy and cook for a minute.
  7. Add fried paneer-capsicum, salt, ½ tsp sugar, kasuri methi, garam masala. Stir and simmer for few mins. Do not cook for too long.
  8. Lastly add cream if adding, mix once and remove from heat.
  9. Serve hot with naan, kulchas, tandoori rotis, phulkas, roomali rotils, chapathis. Or try serving on top of toasted bread too!


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
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