What’s Cooking India? It is Kadai Paneer gravy recipe. Kadai Paneer masala gravy is a very popular Indian cottage cheese (Paneer) dish where the paneer is cooked with bell peppers and Kadai masala.

Adding fresh ground spices really makes a big difference in any recipe. Especially in Kadai Paneer.

Is it the magic of these ground spices that gives Kadai paneer recipe its special aroma and taste.

Paneer (Indian Cottage Cheese) made in tomato and onion gravy with freshly homemade Kadai masala. Kadai Paneer gravy masala is always made in a Kadai.

Kadai masala is made up of freshly pounded dry roasted Indian spices which include coriander seeds, Kashmiri dried red chilies, Kasuri Methi and garam masala.

Ingredients for Kadai Paneer Gravy

Steps to Make Kadai Paneer Gravy Recipe

How to Prepare Kadhai Paneer Gravy?

Step 1: First, take a grinder jar, add Coriander seeds, and Dry Kashmiri Red Chili and grind them until it becomes a fine powder.

Step 2: Now, in a frying pan, add 1 Tbsp of oil and fry 8 Cashewnuts and the chopped onion.

Step 3: As soon as the onions become translucent, add the chopped tomatoes and saute it till the tomatoes turn soft and start melting.

Step 4: Switch off the flame and let the mixture cool down at room temperature.

Step 5: Now, blend this mixture into a smooth paste and keep it aside.

Step 6: Now, in the same frying pan, add 1 Tsp of oil and bring the pan to heat.

Step 7: Add1 chopped onion and square-cut capsicum and cook it until half cooked.

Step 8: Then, add Paneer and saute it once again. Let it cool at room temperature.

You can also try our Butter Paneer Gravy or gulab jamun for your sweet tooth.

How to make Kadai Paneer masala?

Step 1: Take a Kadhai.

Step 2: Add 1 Tbsp oil, 1 Tsp Ginger Garlic paste and saute it until the smell of garlic and ginger goes off.

Step 3: Now, add the ground mixture and stir it for a minute or two.

Step 4: Add the Red Chili powder and Garam Masala. Saute it for another 2 minutes.

Step 5: Pour ¾ Cup of water and salt. Keep stirring while you add.

Step 6: Let the gravy boil until it thickens and starts releasing oil.

Step 7: Add crushed ¾ Tsp Kasuri Methi and let it boil.

Step 8: Lastly, add sauteed capsicum, paneer, onion and juliennes of ginger.

Step 9: Cover the Kadai with a lid and switch off the flame.

Your Kadhai Paneer Recipe is ready to be served with Parotta, Chapati, Kulcha, or rice.

Some Best Recipe Tips

1. Instead of chopping onions and capsicums, you can dice them.
2. You can increase and decrease the spice level according to your preference.
3. Add 1 to 2 Tbsp butter before closing the lid in the last step.
4. You can also make dry Kadai Paneer. Just skip the water and your dry Kadai paneer is ready.
5. Keep the size of the paneer big.
6. Garnish it with grated cheese and chopped coriander leaves.

Related Kadai Paneer Recipe Video