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Kadai paneer is made with fresh and fried paneer cubes cooked with diced onions and capsicum. It typically has a rich, thick and creamy gravy base comprising onion and tomato paste, Dahi and other spices. It is quite easy to make kadai paneer at home. Follow my recipe to create it in your kitchen.

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KEY TAKEAWAYS

Kadai paneer is widely consumed in North India and other Indian regions as well.
Serve it hot with plain roti, tandoori roti, any naan or kulcha for a wholesome meal.

Kadai paneer tastes slightly spicy, creamy, savory, and earthy.
Other similar recipes are paneer butter masala, shahi paneer, paneer masala, and paneer tikka masala.

The Ingredients:

200 grams paneer (cut into small cubes)
2 tsp ghee (clarified butter)
½ cup onion (large size, finely sliced)
½ cup tomato (large size, roughly chopped)
1 piece ginger (2-inch size, diced into small pieces)
12 cloves garlic (peeled, whole)
4 tbsp cooking oil
½ cup onion (cut into diamond shape)
½ cup capsicum (medium size, cut into diamond shape)
1 tbsp sabzi masala powder
1 tbsp Dahi
1.5 cups water
Salt to taste
Coriander leaves (chopped, as required)

This recipe was shared by the wife of our driver. During a function at our home, she had sent a dish made specially for my family. The aroma and look were very tempting and so I tasted it a bit. It was simply delightful! I asked her husband whether she would teach me how to make it, and she visited me the next day with a handwritten note.

I made it that weekend. My husband said it was “pure love,” and the boys loved its simplicity. Now, this is our heartfelt dish. It reminds me how generosity flows in quiet corners—from women who may not speak often but know how to feed with grace.

How to Make Kadai Paneer? (Step by Step Guide with Images)

Step 1: Fry 200 grams of small paneer cubes in 1 tsp of ghee (clarified butter) and keep them aside when done.

(Pro tip: Frying the paneer pieces in ghee adds to the flavor. If you prefer, you can fry them in cooking oil as well.)

Step 2: In the remaining ghee, fry 1 piece of ginger (2-inch size, diced into small pieces) and 12 cloves of garlic (peeled, whole) first, and then add ½ cup of onion (large size, finely sliced) and ½ cup of tomato (large size, roughly chopped) to it. Fry them until soft.

(Pro tip: You may add a few pieces of cashew nuts while frying the onions and tomatoes and blend it. This will make your kadai paneer richer and taste more delicious.)

Step 3: Remove them to a blending jar and make a fine paste.

Step 4: Fry ½ cup of onion and ½ cup of capsicum, both medium size and cut into diamond shapes, in 2 tbsp of cooking oil in the kadai. Remove them when done.

Step 5: Now, heat 2 tbsp of cooking oil in the kadai again. Fry the onion and tomato paste for about a minute or two.

Step 6: Add 1 tbsp of sabzi masala powder. Mix nicely and cover the kadai to cook it for about 3 to 4 minutes on a low flame.

(Pro tip: If you do not have sabzi masala powder at home, you can use a mixture of ½ tsp of cumin powder, 1 tsp of coriander powder, 1/3 tsp of turmeric powder, 1 tsp of red chili powder, and ½ tsp of garam masala powder.)

Step 7: Switch off the stove and let the masala cool down a bit before adding 1 tbsp of Dahi to it. Mix it nicely. Now, turn on the gas stove, cover the kadai and cook it for 3 to 4 minutes more on a medium flame.

Step 8: Add 1.5 cups of water to the masala and mix nicely. Cover the kadai and cook until the water comes to a boil.

Step 9: Add the fried paneer cubes, capsicum and onion to it. Also, add salt to taste and mix everything very nicely. Cover the kadai and let it cook for about 2 minutes on a medium flame.

Step 10: Finally, add a handful of finely chopped coriander leaves and 1 tsp of ghee to it and mix nicely. Cover the kadai and let it cook for another 30 seconds.