Kadai Paneer is a popular Indian paneer dish made with paneer (Indian cottage cheese), onions, and bell peppers cooked in a spicy onion tomato gravy flavored with freshly ground Kadai masala. This Karahi Paneer is a famous side dish in Indian restaurants and is best served with roti, naan, or jeera rice.
I am sharing how to make Punjabi restaurant style Kadai Paneer recipe at home with homemade ground Kadai masala powder.
Kadai paneer is one of those restaurant-style meals that I enjoy making at home. I even make the Kadai masala powder from scratch as it makes it so much more flavorful.
I pair it with some homemade Laccha paratha or roti or even store-bought naan and my family loves it. Honestly, it's the best Kadai paneer recipe and is so easy and delicious!!
If you love easy paneer recipes try my Paneer butter masala and Paneer bhurji recipe.
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What is Kadai Paneer?
Kadai Paneer is a popular North Indian recipe made with cubes of soft paneer and crunchy onions, bell pepper in a spicy gravy flavored with a special ground spice mix called Kadai masala.
It is a staple dish on the menu of many Indian restaurants but easy to make at home too.
Kadai or kadhai is the name of a utensil popularly used in Indian cuisine. It is similar to a wok and is used in making stir fry recipes and deep-frying.
Kadai Paneer, also called Karahi paneer is made in Kadai and hence the name. However, you can also make this recipe without a Kadai in a pan or even in the Instant Pot.
You can make Kadai paneer dry or semi-dry and serve it with any Indian flatbread or make it with gravy to go with rice. Either way, it's delicious!!
Kadai Masala
The key to the best Kadai paneer is a freshly ground spice mix called Kadai masala.
You can buy this Kadai paneer masala powder from stores but it is really easy to make at home and is so much more flavorful.
The key ingredients for Kadhai masala are coriander seeds and dry red chilies. In addition, I also like using fennel seeds, cumin seeds, cardamom, black pepper, and cloves to boost the flavor.
All you need is to make this Kadai spice mix dry roast the spices until fragrant, cool, and grind them to a fine powder.
You can make this spice mix in bulk and store it for future use. It can also be used in making other recipes or sabzis to boost the flavors.
Recipe Ingredients
Paneer: Paneer is the main ingredient for this recipe. It is also known as Indian cottage cheese. You can use fresh homemade paneer or store-bought fresh or frozen paneer which is easily available in most Indian grocery stores. For frozen paneer, (I prefer the Haldiram brand) thaw it to room temperature then soak it in hot water until soft and it's as good as fresh paneer.
Onions: I use two types of onions for this recipe, yellow finely chopped onion for making the curry base and red onion for the cubes.
Bell Peppers: I love using a mix of red and green bell peppers (capsicum). They add a nice color appeal to the dish. You can use just green too.
Tomatoes: I have used fresh Roma tomatoes but you can use store-bought tomato puree too. When using fresh tomatoes I like to add a tablespoon of tomato paste to that boost tomato flavor and color.
Aromatics - you will also need some ginger garlic and green chili for flavoring the gravy.
Whole spices: For the Kadai masala, you will need dry Kashmiri red chilies, coriander seeds, cumin, cloves, green cardamom, black peppercorns, and fennel. Use good quality spices for the best flavor.
Spices - In addition to the freshly ground Kadai masala, I also use some Kashmiri red chili powder (for color without too much heat). Garam Masala and Kasuri Methi (dried fenugreek leaves) for flavoring the curry.
Oil - You can use oil, ghee, or butter to make the recipe. Ghee and butter give it a rich flavor.
Others - Some cream (optional), cilantro (coriander), and ginger julienne to finish the recipe.
Please refer to the recipe card for exact measurements of ingredients.
How To Make Kadai Paneer (Stepwise Photos)
Make Kadai Masala
1 and 2 - In a small pan or wok, add the whole spices for Kadai masala and dry roast on low heat for 3-4 mins until fragrant.
3 - Remove the pan from heat and transfer the spices to the grinder.
4 - Allow the spices to cool and then grind to a fine powder. Keep aside.
You can make this Kadai masala in advance and store it in an air-tight container.
Sauté paneer, onions, and bell pepper
This is optional, you can directly cook the onion bell pepper in gravy too but sauteing them on high heat lends them a smoky flavor, like those served in restaurants.
5 - In a kadhai or wok or pan, heat 1 tablespoon of oil or butter and add the onions and bell pepper.
6 - Saute on high heat for 1-2 minutes or until the veggies turn bright and lightly roasted yet crunchy. Do not overcook. Remove on a plate and keep aside.
7 - In the same pan, heat one more tablespoon of oil or butter. Add the paneer, and ¼ teaspoon of salt and saute paneer for 1 minute on each side.
8 - You don't have to brown the paneer. Do not overcook the paneer or else it will get hard. Remove on a plate with the onions and bell peppers. Keep aside.
Make Kadai Paneer (stove top)
9 - In the same wok (or pan), heat oil on medium heat and saute onions until lightly golden.
10 - Stir in ginger and garlic paste and saute until the garlic smell goes.
11 - Add the tomatoes and 1 teaspoon salt, and mix well.
12 - Cover and cook until the tomatoes are soft about 3-4 minutes. Stir intermittently to prevent tomatoes from sticking.
13 - Stir in the tomato paste, green chili, red chili powder, garam masala, and kadai masala.
14 - Cook until this onion tomato masala reduces in size and the oil starts separating from the sides.
15 and 16 - Stir in ½-1 cup of water to adjust consistency and bring it to a simmer. Start with a half a cup and add more if needed.
17 and 18 - Add the sautéed bell peppers, onion, and paneer. Mix and cook for 2 minutes or until the mixture starts simmering.
18 - Crush some Kasuri methi between your palms and add it along with cream, and ginger juliennes. Mix and cook for another 2-3 minutes on medium-low heat.
Garnish with cilantro and ginger juliennes. Kadai Paneer is ready to serve.
Instant Pot Kadai Paneer
You can also make this recipe in the Instant Pot (pressure cooker).
Start Instant pot on saute and dry roast the spices and grind to a powder.
Similarly saute the onions, bell pepper, and paneer in butter or oil. Remove them to a plate.
Now add oil and let it heat up. Then add in your onions, ginger garlic paste, and saute for a minute.
Then stir in the tomatoes, tomato paste, green chili, salt, and spices. Saute for another 1-2 minutes.
Add half a cup of water, deglaze the pot, and pressure cook for 5 minutes on high pressure followed by quick release.
Optional - At this point, you can puree the onion-tomato masala for smoother gravy if required.
Now start Instant pot back on saute mode and add your sauteed onions, bell pepper, and paneer, cook for two minutes and then add the crushed Kasuri methi, cream, ginger juliennes, and cilantro. Mix well and turn off the Instant Pot.
Instant Pot Kadai paneer is ready to serve.
Variations
You can make Kadai paneer either dry, semi-dry, or in gravy form. The recipe shared makes a semi-dry version so here is how you can modify this recipe for dry and gravy.
Kadai paneer dry - saute the onion tomato masala until completely dry and oozes oil from the side. Use just 1-2 tablespoons of water if needed to deglaze.
Kadai paneer gravy - add more water (1 to 1.5 cups) and bring it to a boil along with paneer and veggies. You can also puree the tomatoes for a smoother consistency and add more cream to make them creamy.
Serving Suggestions
Restaurant-style Kadai paneer pairs well with any Indian flatbread like naan, roti, paratha, chapati, or even with plain basmati rice or zeera rice.
You can also make Kadai paneer dry and use it as a filling for your wraps.
To make Kadai paneer wrap, smear some green chutney on a tortilla or paratha, layer Kadai paneer, add chopped red onions, sprinkle some chaat masala, and roll. So delicious!!
Recipe Tips
Use good quality paneer. If possible use homemade paneer but store-bought (fresh or frozen) works just fine too. Just soak it in hot water for 20-30 mins until soft.
Homemade freshly ground Kadai Masala powder is key to a delicious and flavorful Kadai Paneer. Highly recommend making it at home vs buying the store-bought one. You can make it in bulk and store it in an airtight container.
You can control the spice level in kadai paneer with the amount of dry red chilies in the Kadai masala. More chilies equal more spicy. I recommend using Kashmiri red chilies as they are mild and give a beautiful orange-red color to the gravy. Alternately use any dry Indian red chilies with low to medium heat.
For a smoky flavored Kadai Paneer, use the dungar method. I usually skip it and simply sauté the onion and bell peppers on high heat which infuses some smoky flavor.
Use store-bought tomato puree for even vibrant-looking curry. If using fresh tomatoes, add tomato paste for that flavor and color boost.
Last but not least, don't forget the ginger juliennes. It really brings the dish together and makes it taste just like the ones served at restaurants.
Frequently Asked Questions
Allow leftover kadai paneer to cool completely then store in an airtight container in the refrigerator for 3-4 days and in the freezer for 1-2 months.
Reheat in the microwave or in a pot on the stovetop until completely heated through before serving. Adjust consistency with water as needed.
Yes, simply replace the paneer with tofu in the recipe to make vegan kadai paneer. Also, skip the cream at the end.
Simply skip the onion and garlic in the recipe. You add a pinch of hing (asafoetida) in the oil before adding onions but is optional. The dish may be slightly tangy in which case balance it with some cream.
More Paneer Recipes
Hope you enjoy this Kadai Paneer Recipe !! If you give this recipe a try, please rate by clicking stars ⭐️ on the recipe card. Thank you ❤️! You can also follow me on Facebook and Instagram to see what’s cooking in my kitchen!!
Recipe Card
Kadai Paneer Recipe
Ingredients
For Kadai Masala
- 1 teaspoon cumin seeds
- 1 teaspoon fennel seeds
- 2 tablespoon coriander seeds
- 2 Kashmiri red chilies
- 5-6 whole black peppercorns
- 2 cardamoms
- 2 cloves
For Veggies and paneer
- 2 tablespoon butter or oil
- 1 bell pepper cut in cubes, using a mix of green and red bell pepper
- 1 medium red onion cut in cubes
- 350 grams Paneer cut in cubes
For Kadhai paneer
- 2 tablespoon oil or butter
- 1 medium yellow onion finely chopped (approx 1 cup chopped)
- 1 green chili sliced
- ½ tablespoon ginger paste
- ½ tablespoon garlic paste
- 2 tablespoon kadai masala from above
- ½ teaspoon kashmiri red chilli powder
- ½ teaspoon garam masala
- 1 teaspoon salt adjust to taste
- 4 tomatoes finely chopped or pureed (approx 2 cups chopped) or use ½ cup store bought tomato puree
- 1 tablespoon tomato paste
- ½ to 1 cup water to adjust consistency
- 1 tablespoon kasuri methi dried fenugreek leaves
- 2-3 tablespoons cream
- 1 inch ginger julienned
- ¼ cup cilantro for garnishing
Instructions
Make Kadai Masala
- In a small pan or wok, add the whole spices for Kadai masala and dry roast on low heat for 3-4 mins until fragrant.
- Remove the pan from heat and transfer the spices to the grinder.
- Allow the spices to cool and then grind to a fine powder. Keep aside.
- You can make this Kadai masala in advance and store it in an air-tight container.
Sauté paneer, onions, and bell pepper
- In a kadhai (wok) or pan, heat 1 tablespoon of oil or butter and add the onions and bell pepper.
- Saute on high heat for 1-2 minutes or until the veggies turn bright and lightly roasted yet crunchy. Do not overcook. Remove on a plate and keep aside.
- In the same pan, heat one more tablespoon of oil or butter. Add the paneer, and ¼ teaspoon of salt and saute paneer for 1 minute on each side. You don't have to brown the paneer. Do not overcook the paneer or else it will get hard.
- Remove on a plate with the onions and bell peppers. Keep aside.
Make Kadai Paneer (stove top)
- In the same wok (or pan), heat oil on medium heat and saute onions until lightly golden.
- Stir in ginger and garlic paste and saute until the garlic smell goes.
- Add the tomatoes and 1 teaspoon salt, and mix well. Cover and cook until the tomatoes are soft about 3-4 minutes. Mix intermittently to prevent tomatoes from sticking.
- Stir in the tomato paste, green chili, red chili powder, garam masala, and kadai masala.
- Cook until this onion tomato masala reduces in size and the oil starts separating from the sides.
- Stir in ½-1 cup of water (to adjust consistency) and bring it to a simmer. Start with half cup and then add more if needed.
- Add the sautéed bell peppers, onion, and paneer. Mix and cook for 2 minutes or until the mixture starts simmering.
- Crush some Kasuri methi between your palms and add it along with cream, and ginger juliennes. Mix and cook for another 2-3 minutes on medium-low heat.
- Garnish with cilantro and ginger juliennes. Kadai Paneer is ready to serve.
Instant Pot Kadai Paneer
- Start Instant pot on saute and dry roast the spices and grind to a powder.
- Similarly saute the onions, bell pepper, and paneer in butter or oil for 1-2 minutes. Remove them to a plate.
- Now add remaining oil and let it heat up. Add in your onions, ginger garlic paste and saute for a minute.
- Then stir in the tomatoes, tomato paste, green chili, salt and spices. Saute for another 1-2 minutes.
- Add half a cup of water, deglaze the pot, close the lid with went to sealing and pressure cook for 5 minutes on high pressure. Once cooking completes, do a quick release.
- At this point, you can puree the onion-tomato masala for smoother gravy if required.
- Start Instant pot back on saute and add your sauteed onions, bell pepper, and paneer, cook for two minutes.
- Add the crushed Kasuri methi, cream, ginger juliennes, and cilantro. Mix well and turn off the Instant Pot.
- Instant Pot Kadai paneer is ready to serve.
Video
Notes
Nutrition
Update Notes: This post was originally published on Sep 3, 2012, but was republished with, step-by-step instructions, new photos, tips, and a video in June of 2022.
Looking colourful dear...
Such a colorful, flavorful dish, Shweta. Well done.
Keep writing...
The colors are grogeous, and inviting. Lovely!
This looks really delicious. love the colours.
Wow...sounds very flavorful n delicious...loved your version!!
Tempting recipe..yummy..
Shabbu's Tasty Kitchen