Kadai Paneer Recipe (Semi Dry & Gravy Version)

Name: Kadai Paneer
Prep time: 15 min
Cook time: 20 min
Total time: 35 min
Ingredients: 6 dried red chilies; 2 tablespoons coriander seeds; 2 teaspoons cumin seeds; 1/2 teaspoon black peppercorn; 2 tablespoons butter (or oil); 1 small onion (finely chopped); 1/2 inch ginger (peeled and minced); 1 green chilli (slit); 4 garlic cloves (peeled and minced); 1 cup cubed onions (from 2 large onions); 1 cup cubed bell peppers (from 1 large bell pepper); 1.5 cups paneer (cubed); 2.5 cups tomatoes (very finely chopped or minced); 1/2 teaspoon turmeric powder; 1/2 teaspoon kashmiri chilli powder; 1/2 teaspoon garam masala; 1/2 teaspoon kasuri methi; Salt (to taste); ginger julienne (as required); 2 tablespoons chopped coriander leaves (cilantro leaves)

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Kadai paneer is a tasty paneer dish made with Indian cottage cheese, bell peppers and a special spice powder called kadai masala. In restaurants you will find two variations of this recipe( semi dry & gravy) and and I am sharing both here. It is one of the popular veg recipes in Indian restaurants.

This restaurant style kadai paneer recipe is a wonderful combination for butter naan, kulcha, jeera rice. Do try this out and enjoy!

For more paneer recipes please check paneer butter masala, palak paneer, shahi paneer, paneer tikka masala recipes.

restaurant style kadai paneer served in a copper pan with a spoon.

Paneer is one ingredient that we all love at our home. I cook with it at least twice a week. This kadhai paneer is a top favorite at home too. I usually make the kadai masala and store so making this recipe is a breeze. Here crunchy bell peppers or capsicum pairs well with soft paneer.

This kadai paneer recipe is an easy to make paneer curry that is not very rich and creamy. It has bold flavors and tastes delicious with mild rice varieties and bread. My easy recipe will help you make best kadai paneer at home.

Table Of Contents

What Is Kadai Paneer?

Kadai paneer is a popular Indian paneer curry just like paneer butter masala, palak paneer etc. Here paneer(Indian cottage cheese) and bell peppers (capsicum) are cooked in a spicy masala made of onions, tomatoes and spice powders.

The entire recipe is cooked in an Indian wok called kadai or karahi and hence this is called karahi paneer or kadai paneer.

Kadai is the most commonly used utensil in Indian cooking. It is used mostly for making everyday vegetables like stir fries, deep frying, sweets and more. It is usually made of cast iron or carbon steel.

You can however easily make this recipe in a regular pan if you do not have kadai.

Unlike many other recipes, the spice blend used for this curry is a special one known as kadai masala. It is blend of 3-4 whole spices. While it is easily available in stores, homemade kadai masala is much more flavorful and fresh. I have included the recipe for making the spice blend here.

There are two variations in this kadai paneer recipe

semi dry version
gravy version

Once the masala powder for kadai paneer is ready, it is a breeze to make kadai paneer. Here is my easy recipe with step by step photo. This dish is

ready in 30 minutes

pairs well with naan, paratha and rice

delicious and flavorful

treat for paneer lovers

vegetarian and gluten free

What Is Kadai Masala Made Of?

The kadai masala is a dry spice mix made of whole spices. The whole spices added to this blend varies. The common spice used is whole coriander seeds here.

I usually add

whole coriander seeds
dried red chilies
cumin seeds
black peppercorns

In some recipes you will also find bay leaf, cinnamon, cardamom but the above mentioned ones are what added in authentic kadai masala.

What I usually do is along with this spice blend I add a dash of garam masala powder while making the curry.

This karahi paneer is supposed to be spicier than any other paneer curry, so a good amount of black peppercorns and dried red chilies.

The addition of freshly powdered spices lend a wonderful taste and amazing flavor to this curry. The aroma of freshly roasted and ground spices is impeccable, don’t you think so?

You can make this kadai masala well ahead and store for weeks in airtight containers. This will save time for you while making kadai paneer.

I also use this kadai masala in many other recipes like veg kadhai in veg stir fries, to perk up the flavor of many veg curries. Just a small pinch will totally elevate the flavor.

Preparation

First of all, cube 2 large onions and measure out 1 cup cubed onions. Next chop 1 small onion finely. Chop the tomatoes very finely or puree them and measure out 2.5 cups. Chop 1 large green bell pepper or capsicum into cubes. Peel and mince the ginger garlic and set aside.

Next if you are using store bought paneer, cube them and keep immersed in hot water until use. If you made paneer at home, just remove from the refrigerator, cubed and set aside. You will need around 1.5 cups cubed paneer for this recipe.

To make masala powder, heat a small pan add the whole spices to it. Dry roast in low flame for 3-4 minutes.

roasting whole spices -coriander seeds, dry red chilies, cumin seeds and black peppercorns for kadai masala

Let cool and transfer to a dry grinding jar.

Grind to a fine powder. Set aside this kadai masala until use. You can use this in various curry recipes too.

How To Make Kadai Paneer Semi Dry

Heat a kadai or pan with 2 tablespoons butter or oil in medium flame. To the hot pan one by one add cumin seeds, finely chopped onions, minced ginger garlic and slit green chili. Saute well for a minute until the raw smell of ginger garlic leaves and onions get cooked a bit. You can also use 1 teaspoon ginger garlic paste in this kadai paneer recipe.

sautéing onion, ginger garlic and green chili in butter in a kadai

Now add the cubed onions and bell peppers. Saute in high heat for 2 minutes continuously. No need to do this in a separate pan and all.

cubed onion and bell pepper added to the sautéed onions

Next add the tomato puree or finely chopped tomatoes and tomato paste. Mix well and cook for 2 minutes in medium flame till they turn a bit soft.

tomato puree added to bell peppers for kadai paneer recipe

Add the ground masala powder, garam masala powder, Kashmiri red chilli powder, turmeric powder and salt to taste.

kadai masala, garam masala added to onion tomato base for kadai paneer recipe

Mix well and cook till the tomatoes are completely cooked and fat releases from the sides. You can add 1/2 cup water at this stage. This is the base masala for kadai paneer.

onion tomato base for making kadai paneer recipe

Add the cubed paneer pieces and mix gently. If you have made paneer at home just cube it an add. If using store bought paneer, cube and soak in hot water for 15 minutes, drain and add.

paneer added to prepared kadai gravy masala

Finally add the ginger julienne, crushed kasuri methi or dried fenugreek leaves and mix well.

kadai paneer garnished with ginger julienne

Transfer kadai paneer to a serving bowl and garnish with chopped coriander leaves. Serve kadia paneer immediately.

closeup shot of restaurant style kadai paneer

Kadai Paneer Gravy Recipe

To make kadai paneer gravy version of this simply increase the quantity of pureed tomatoes to 3.5 cups. Saute the cubed onions and bell peppers separately and remove to a plate.

Follow the semi dry kadai paneer curry recipe and at the stage of adding finely chopped tomatoes, add the tomato puree along with paste if using. Also add the kadai masala and other spice powders.

Mix well and cook till it leaves out fat. Add 2 cups water and simmer till the gravy consistency is reached. Once the gravy is thick to your liking add sautéed onions, bell pepper and cubed paneer. Mix well and remove from flame.

This kadai paneer gravy tastes wonderful with rice, naan, lachha paratha etc.

Expert Tips

Please go through these tips and follow them to make this recipe perfectly. I have curated these tips over the years and perfected the recipe.

Quality of paneer– The first tip for any paneer curry is to use best quality paneer or Indian cottage cheese. I always suggest homemade paneer because it is fresh, delicious and softest.

However if you are using store bought paneer or paneer from frozen section, you will have to soak it in warm water for 30 minutes before using.

Soaking the paneer in warm water makes it softer and also the flavor of masala gets absorbed well.

Kadai– Typically this dish is made in an Indian wok or kadai. It is a deep and broad cast iron pan that would withstand high heat. If you do not have a kadai use any regular cooking pan for this recipe.

If you have a carbon steel or cast iron pan, it would be ideal.

Kadai masala– the spice blend you use can make or break this dish. If possible, use freshly roasted and powdered kadai masala. Nothing like freshly pounded spices in any curry.

If you are making and storing a big batch, make sure to store in an airtight container and refrigerate or freeze. This will make your spice blend last long and flavors will be potent.

Spice levels- Please note that kadai paneer is one spicy curry compared to other paneer curries. To get the real taste and flavor refrain from adding cream or cashews in this recipe. They will totally alter the flavor. If you want to make it less spicy, just reduce the amount of red chilies and you can add a dash of butter just before serving.

Along with red chillies, I always add some black peppercorns to give that sharp spice note.

Red Chillies– we need dried red chillies for this curry. If you can handle the heat go head and add spicier ones like I did here. For mildly spiced curry you can use Kashmiri red chillies or byadgi chilies. They are mildly spiced but add vibrant color.

What I usually do is, add spicy dry red chillies to kadai masala and some kashmiri red chilli powder while making the curry to balance spice and color.

Color– the deep red color of this curry comes from kadai masala and tomatoes. Use ripe and red tomatoes for best flavor, taste and color. To deepen the color you can also add some tomato paste. It adds flavor and vibrant color to this dish.

Bell pepper– Bell peppers or capsicum are a must in this recipe. They add a wonderful crunch and flavor. You can use only green or mixed colored bell peppers.

Kasuri methi- Dried methi leaves or fenugreek leaves known as kasuri methi lends that wonderful flavor to this curry. So add it if you have.

Ginger Juliennes & coriander leaves– The most commonly used garish for kadai paneer is ginger juliennes. They add a good flavor, pungent taste and mild heat and tastes really delicious in this curry. Add as less or more as you like. Also add some chopped coriander leaves for flavor.

Serving Suggestions

This flavorful and delicious kadai paneer goes excellently well with naan, kulcha, paratha and other Indian breads. It also tastes very good with plain biryani rice, jeera rice, steamed basmati rice, ghee rice.

I sometimes use the semi dry version as sandwich filling or toss some cooked pasta to it, try it out yum!

This recipe of kadai paneer is one of the most requested recipes in our family gatherings. It has the perfect balance of spice, flavor and color. It tastes wonderful when served hot with some onion rings and loads of coriander leaves. Do try it out and tell me 🙂

delicious semi dry kadai paneer served in a copper pan

Frequently Asked Questions

How to make vegan kadai paneer?

Yes, just use extra firm tofu instead of paneer and oil instead of butter. Make sure to press the tofu for 20 minutes before cutting into cubes.

How to grind the kadai masala?

You can use the smallest dry grinding jar of an Indian mixer grinder to powder the spices. In the US you can use a coffee grinder or spice grinder and powder the spices easily.

What can I use if I don’t have kadai masala?

Just increase the garam masala by another 1 teaspoon and add 2 teaspoons roasted and ground coriander. Also increase red chili powder by another 1/2 teaspoon.

Is it necessary to dry roast the spices?

Yes, dry roasting not only crisps up the spice but also releases some essential oils and makes them very flavorful. So even if your are crisp and fresh, dry roasting them for few minutes is recommended.

How to infuse smoky flavor in this curry?

To make restaurant style kadai paneer with smoky flavors first you will have to saute onions and bell pepper in high flame as mentioned in the recipe. This alone will lend a mild smoky flavor to the dish.

For furthermore smoky flavor you can do dhungar method. That is infusing charcoal smoke in the curry.

To incorporate dhungar in this recipe heat a piece of charcoal until it is flaming hot. Place it carefully in a small bowl and place the bowl in the pan with curry. Add some oil or ghee to the hot charcoal and close the pan tightly. Let the flavor infuse for 3-4 minutes. Discard the charcoal with oil and serve the curry immediately.

What is the difference between kadai paneer and shahi paneer?

They are two different recipes entirely. While shahi paneer is a mild and rich curry with very delicate flavor from Hyderabad, kadhai paneer is robust, spicy and mildly pungent curry from Punjab.

What does kadai paneer taste like?

Kadai paneer has a spicier and robust taste with wonderful flavor from whole spices. It is not creamy like paneer butter masala as we are not using cashews.

How to make kadai paneer spicier?

To make this more spicy just double the red chili powder and add 1 more tablespoon of kadai masala powder.

More Curry Recipes

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