Kadai Paneer Recipe (Restaurant & Homestyle) (2024)

Kadai Paneer is a vibrant, tangy, deeply spiced paneer recipe that is perfect for enjoying all year round. Made with pantry staples like onions, tomatoes, capsicum (green bell peppers) and Indian spices, this bright dish comes together in 30 minutes. I share two ways to make this curry – a semi dry restaurant style version and a spicy home style gravy.

What is Kadai Paneer

As the name suggests, Kadai Paneer is a recipe using Indian style cottage cheese a.k.a Paneer which is a soft cheese that does not melt.

Paneer is a fresh cheese made by curdling milk with lemon juice or vinegar. Unlike American style cottage cheese that is loose and has individual curds, paneer is firm (like tofu), non-melting and can be easily cut into cubes.

Due to its texture, paneer makes an excellent addition in many Indian curry recipes like Paneer Butter Masala, Palak Paneer, Shahi Paneer and Matar Paneer.

The word kadai refers to a humble piece of Indian cookware; a kadai is similar to a Chinese wok, but with steeper sides and more depth. This entire dish is made in the kadai, and thus the dish is named “Kadai Paneer” or “Karahi Paneer”.

Aside from the paneer itself, the three quintessential ingredients added to kadai paneer are: onions, capsicum (green bell peppers) and tomatoes.

A freshly ground spice mixture made from coriander seeds and dry red chillies – known as kadai masala is also added.

If you do not have these whole spices to grind at home, you can simply add ground spices like turmeric, red chili powder, garam masala and coriander instead.

That said, the freshly pounded kadai masala does lend a beautifully bold flavor to the recipe – if possible, I recommend you make it fresh.

Kadai Paneer is one of the easiest and most delicious paneer recipes around. It is a perfect recipe for when you have unexpected guests, or you are too tired or in no mood for an elaborate dish. Seriously, this is one of those recipes you should keep on hand for hectic weeknights!

This restaurant style kadai paneer recipe makes for a semi-dry and mildly spiced curry. It uses a freshly ground kadai masala that is made with whole spices. While many spices are used in the masala, coriander seeds and Kashmiri chiles are the most notable.

I adapted this simple kadai paneer recipe from the cookbook “Prashad – Cooking with Indian Masters”by Jiggs Kalra.

Step-by-Step Guide

How to Make Kadai Paneer (Restaurant Style)

Recipe 1

Make Kadai Masala

1. In a spice-grinder, mixer-grinder or mortar-pestle, take 1.5 tablespoons coriander seeds and 5 to 6 Kashmiri red chilies.

TIP: Tear or break the dry chillies and remove the seeds before you make the kadai masala. Also ensure that your spices are fresh and without any molds or insects.

2. Grind to a semi fine powder or a fine powder if you prefer. Set aside.

Sauté onions, tomatoes & spices

3. In a kadai, heat 3 tablespoons oil. Add ⅓ to ½ cup finely chopped onions.

4. Sauté onions on medium-low to medium heat until they soften and turn translucent.

5. Then add 1 teaspoon ginger-garlic paste.

6. Sauté for a few seconds till the raw aroma of ginger-garlic goes away.

7. Now add 2.5 to 3 cups finely chopped tomatoes. The tomatoes have to be ripe, red and sweet. If tomatoes are not in season, I recommend using canned tomatoes that you pulse in a food processor or finely chopped cherry tomatoes.

8. Mix well and sauté tomatoes for 3 to 4 minutes on a medium-low to medium heat.

9. Then add the ground kadai masala to the tomatoes.

10. Mix well. Sauté the tomatoes till the whole mixture turns into a paste and starts separating from the oil. (This method is called ‘bhunao’ in Hindi.)

This tomato masala paste will also begin to thicken and become glossy.

Sauté capsicum

11. Now add ¾ to 1 cup capsicum julienne (thin slices).

12. Sauté the capsicum for 3 to 4 minutes on medium-low to medium heat.

Note: You can use red, orange, yellow or green colored capsicum, or a mix of various colored bell peppers can also be added.

13. Add 1 to 2 green chilies or 1 small serrano pepper (slit) and about ½ cup water. Add less or more water as required.

14. Mix very well and sauté until the capsicum is al dente. If you prefer, you can cook the capsicum completely, but I prefer a bit of crunch to the dish.

15. Once the capsicum is cooked to your liking, add garam masala powder and salt as required. Mix these with the rest of the masala.

Assemble Kadai Paneer

16. Now add the paneer cubes (250 grams).

17. Again, mix very well.

18. Lastly add 1 teaspoon crushed kasuri methi (dried fenugreek leaves), ginger julienne (from 1 inch ginger) and 2 tablespoons coriander leaves. Mix again and turn off the heat.

NOTE: If you do not have kasuri methi, then simply omit them. Fresh ginger is a must, so do not skip; it imparts a great deal of fresh, zesty flavor to the dish.

19. Serve Kadai Paneer hot from the pan with roti, naan, Paratha or pudina paratha.

Serving Suggestions

This semi-dry version of kadai paneer tastes good with any kind of Indian flatbreads like naan, roti or paratha; though you can also have it with bread or dinner rolls to sop up the sauce. Serve with a side of onion rings and lemon wedges.

A more innovative idea would be to make grilled sandwiches, toasties or a wrap or Kathi Roll with the restaurant style kadai paneer; they’ll taste awesome! Add some melting cheese to make these warm sandwiches even more tasty.

You could also make a pizza with the semi-dry kadai paneer and mozzarella cheese as toppings.

Step-by-Step Guide

How to make Homestyle Kadai Paneer Gravy

This is spicy and tasty Kadai Paneer recipe has a curry or gravy base. The curry is slightly spicy and tangy than the version of the dry kadai paneer which I have shared above.

NOTE: This kadai paneer gravy recipe uses a lot of tomatoes – so make sure they are ripe and sweet.

The curry variation also includes the kadai masala. As I have mentioned above, the kadai masala made with freshly ground coriander and dry red chillies add a lot of flavor in the dish.

Kadai Paneer Gravy is best eaten with roti, paratha or rumali roti or naan and also with plain steamed rice or cumin rice.

Step-by-Step

Recipe 2

1. First roast 5 teaspoon coriander seeds and 4 to 5 dry Kashmiri red chilies (seeds removed) in a pan on a low heat till aromatic. Take care not to burn them.

2. When the spices cool, grind both of them in a spice-grinder or mixer-grinder to a semi-fine or fine powder.

Avoid keeping the powder coarse as then the gravy has grits and the masala comes in the mouth while eating.

3. In a pan heat 4 tablespoon butter or oil or ghee (clarified butter). Then add the ginger-garlic paste (1.5 inch ginger, chopped + 7 to 8 medium sized chopped garlic, crushed in a mortar-pestle to a fine paste). Sauté till their raw aroma disappears.

4. Then add 2 medium sized chopped onions (100 grams) and sauté till translucent.

5. Add the freshly ground coriander and kashmiri red chilli powder. Also add 1 to 2 chopped green chillies (about 1 teaspoon chopped chillies).

6. Mix and stir well.

7. Add 2 small to mediums-sized finely chopped tomatoes. Sauté until the tomatoes soften and become pulpy. You will also see oil releasing from the sides of the onion-tomato masala.

When the chopped tomatoes have softened completely, then only add the tomato puree (5 small to medium-sized tomatoes, pureed in a blender).

8. Stir well and continue to sauté till you see oil leaving the sides. About 9 to 10 mins on a low to medium-low heat.

9. Add 1 small to medium sizedcapsicum (green bell pepper) julienne. Stir and simmer for 2 to 3 minutes on a low to medium flame.

You could add any variety of capsicum or bell pepper – green, yellow or red. Adding a mix of different colored bell pepper look lovely as well as taste great.

10. Add ½ to ¾ cup of water and salt (as required). Continue to simmer for some 7 to 8 minutes. Once the gravy is done, you will some oil specks on the top.

11. Then add ½ tablespoon crushed kasuri methi (dried fenugreek leaves) and ¾ to 1 teaspoon garam masala powder. Stir the gravy.

Skip if you do not have the dried fenugreek leaves.

12. Then add 250 to 300 grams paneer cubes or slices. Mix gently.

13. Switch off the heat. Don’t overcook the paneer as then it will become chewy and you won’t get the desired texture in the paneer.

You can also add 2 tablespoons light cream or low-fat cream or 1 tablespoon heavy cream at this step and gently mix the cream in the gravy.

14. Garnish with chopped coriander leaves, ginger julienne or grated paneer. Do not skip on either coriander leaves (cilantro) or ginger julienne.

Both add plenty of freshness, especially the ginger hits you with its warm and pungent taste.

Serve kadai paneer gravy with roti, naan, steamed rice or cumin rice or peas pulao or biryani rice.

Expert Tips

• No Kadai? No problem. Simply use a frying pan or a wok.
• Homemade Kadai Masala: Coriander seeds and dried red chillies go in the kadai masala, making it aromatic and pungent. You can also add a bit of cloves, cinnamon, green cardamom in the masala if you like.
• Use chili peppers which have low-medium heat. Highly pungent hot chilies will make the recipe too spicy. If you can, I suggest using Kashmiri Red Chillies, as they are low in heat and impart a vibrant orange-red color in the recipe.

  If Kashmiri chilies are unavailable, then use any Indian dry red chillies which have a low-medium heat quality. Change the quantity depending on the heat and pungency of the chilies. Since red chilies are added in the recipe, you do not need to add red chili powder.

• How to grind the spices: The spices for kadai masala can be easily ground in a small grinder or a spice grinder. To make the pounding easier in a mortar pestle, dry roast the red chilies and coriander seeds first.
• Use High Quality Paneer: It is always better to use Homemade Paneer whenever possible, though you can use packaged store-bought paneer in a pinch. Read the instructions on the package on how to use the paneer. Frozen paneer cubes need to be soaked in hot water before adding them in the dish.
• Choose Ripe Tomatoes: Use tomatoes which are ripe, red and sweet. Do not use tart, green or sour tomatoes.
• Any Onions Will Do: You can use either red, yellow or white onions.
• Capsicum (Bell Pepper) Color Isn’t Important: Usually, green bell pepper is added in this dish, but you can break the norm and use red or yellow bell pepper. With red or yellow bell pepper, the dish will have nice, subtly sweet tones.
• Don’t Forget a Garnish: Do not forget to garnish your finished kadai paneer with some ginger julienne and fresh coriander leaves!
• Vegan Option: Use tofu instead of paneer and use oil instead of butter or ghee.

FAQs

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This Kadai Paneer recipe from the archives was first published in September 2009. It has been updated and republished on December 2021.