How to make kadai paneer at home | Karahi paneer gravy recipe restaurant style


Kadai paneer is an aromatic, delicious, and popular dish from North India. This restaurant-style kadai paneer is a spicy and flavorful dish. Paneer (Indian cottage cheese), diced onions, and capsicum get cooked with a tomato paste along with freshly ground aromatic spices. Almost, all recipes made from paneer are really popular and tasty. You will find this dish on the menus of Indian restaurants that serve North Indian cuisine. This recipe is simple and can be prepared within 45 min. Follow my recipe to make this flavorful dish at home.


Top view photo of restaurant style kadai paneer served hot in a white bowl on a table, a recipe by
Restaurant-Style Paneer Kadai by Homemakerjob


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Top view photo of restaurant style kadai paneer served hot in a white bowl, a recipe by

Kadai paneer recipe

Kadai paneer is a popular and delicious dish from India. It is a spicy dish made with paneer (Indian cottage cheese), tomato paste, onions, and capsicum. It is a must-try dish if you love Indian cuisine.
Prep Time 15 minutes
Cook Time 30 minutes
Total Time 45 minutes
Course Main Course
Cuisine Indian, Punjabi
Servings 4 people


  • 300 gm paneer cubes (Indian cottage cheese)
  • 1 cup onions, chopped
  • 1 onion, diced
  • 1 capsicum, diced
  • ¾ cup tomatoes, chopped
  • 12 cashews
  • 2 tsp ginger-garlic paste
  • 2 tsp red chili powder
  • ½ tsp turmeric powder
  • 1 tsp salt
  • 1 tsp kasuri methi

For masala

  • 2 tbsp coriander seeds
  • 1 tsp cumin seeds
  • 1 tsp black pepper, whole
  • 3 kashmiri red chilies
  • 7-8 cloves
  • 1 inch cinnamon
  • 4 tbsp oil


  • Heat the pan on low heat. Add 2 tbsp coriander seeds, 1 tsp cumin seeds, 1 tsp black pepper whole, and 3 kashmiri dry red chilies. Stir and roast for 2 min.
  • Remove the roasted spices from a pan and spread on a plate. Let the spices cool down. Transfer the spices to a mixer jar and grind them till you get a fine powder.
  • Heat 2 tbsp oil in a kadai on medium heat. Add 1½ cups finely chopped onions, 1 cup chopped tomatoes, 1 inch ginger, 8 garlic cloves, and 10 cashews. Stir well and fry until the ingredients turn brown in color.
  • Transfer the fried ingredients to a blender jar and blend till you get the smooth paste.
  • Heat 2 tbsp oil in a pan on medium heat. Add the paneer cubes and sauté for 2 min. Remove the cubes and keep them aside. Add the diced onions and capsicum and sauté for 2 min. Remove them and keep them aside.
  • In a kadai, heat 2 tbsp oil. Add ¼ cup finely chopped onions and fry till they turn brown in color. Add the ginger and garlic paste and stir well. Fry for 1 min.
  • Add tomato-onion paste and stir well. Cook for 5 min or until the paste thickens and the oil starts separating from the paste.
  • Add 2 tsp red chili powder, ½ tsp turmeric powder, and 1 tsp salt. Mix well and add ½ cup water. Keep stirring and mixing everything well. Let the gravy simmer for 2-3 min.
  • Add roasted ground masala and mix well with the gravy. Then add the sautéed paneer, onions, and capsicum to the gravy and give it a good mix. Add 1 tsp kasuri methi and mix. Cook for 2-3 min then turn off the heat.
  • Serve hot kadai paneer with roti, naan, or rice.


  • You can add 1 tsp sugar if you like.
  • Adjust the spice level as per your taste.
  • Add more water if you want to make the gravy thinner.
  • Use ripened tomatoes; if they are not properly ripened, the gravy will taste sour.
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