Handi Paneer Recipe Dhaba Style | Paneer Diwani Handi Recipe


Paneer handi is a popular and delicious dish from North India. Gravy is made from tomato puree, on-ion-cashew paste, and many different spices. Then fresh paneer is cooked in gravy. The gravy is thick, rich, and spicy in taste. This dish needs to be cooked in a handi, which is a traditional deep, wide-mouthed, and flat-base clay pot. But we can make this dish in a kadai or copper handi if a traditional handi is not available. This recipe is very simple and easy to make. Try this dish for your next dinner.


Top view photo of paneer handi masala served ready in a clay pot on a table, a recipe by homemakerjob.com
Paneer Handi by Homemakerjob


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Paneer handi masala served ready in a clay pot on a table, a recipe by homemakerjob.com

Paneer handi recipe | Paneer diwani handi masala dhaba style

Paneer handi, or handi paneer, is a rich and delicious dish from North India. It is a spicy, sour, and thick gravy. Usually, it is made in a handi, which is a clay or copper pot for cooking.
Prep Time 15 minutes
Cook Time 30 minutes
Total Time 45 minutes
Course Main Course
Cuisine Indian, North Indian
Servings 4 people


  • 350 gm paneer cubes

For paste

  • 1 cup onions, chopped
  • ¼ cup curd
  • 12 cashews
  • 1 tbsp oil

For gravy

  • ½ cup tomato puree
  • 2 tbsp ghee (clarified butter)
  • ½ tsp cumin seeds
  • 2 green cardamoms
  • 3 cloves
  • ½ inch cinnamon
  • 1 bay leaf
  • 1 tbsp ginger garlic paste
  • 2 green chilies chopped
  • 1 tsp kashmiri red chili powder
  • ½ tsp red chili powder
  • 1 tsp coriander powder
  • ½ tsp cumin powder
  • ¼ tsp turmeric powder
  • ½ tsp salt
  • ½ tsp garam masala
  • 1 tsp kasuri methi
  • 1 tbsp coriander leaves, chopped
  • 1 tbsp butter (optional)


  • Heat 1 tbsp oil in a pan on medium heat. Add 1 cup chopped onions and fry for 5-6 min. Then add 12 cashews and fry for a minute. Transfer it to a plate to cool it down.
  • Add fried onions, cashews, and ¼ cup curd to the mixer jar. Blend till you get a smooth paste.
  • Heat 2 tbsp ghee in a kadai or handi on medium heat. Add ½ tsp cumin seeds, 2 green cardamom, 3 cloves, ½ inch cinnamon, and 1 tejpatta, and fry for 10-15 seconds.
  • Add 1 tbsp ginger garlic paste and mix well. Fry for 2 min. Then add 2 chopped green chilies and fry for 2 min.
  • Add 1 tsp kashmiri red chili powder, ½ tsp red chili powder, and1 tsp coriander powder. Then, add ½ tsp cumin powder, ¼ tsp turmeric powder and mix well. Add ½ cup tomato puree and mix well with spices. Cook for 4 min.
  • Next, add the onion-cashew paste and mix well. Cook for 2 min and add ½ tsp salt and ½ cup water. Stir well and cook for 2-3 min.
  • Add paneer cubes to the gravy and combine well. Let it cook for 10 min.
  • Add ½ tsp garam masala and 1 tsp kasuri methi. Stir well.
  • Finally, add 1 tbsp chopped coriander leaves and 1 tbsp butter and mix well. Cook for 2 min and turn off the heat.
  • Serve hot paneer handi with roti, naan, or rice.


  • Adjust the spice level as per your taste.
  • You can add 2 tbsp fresh cream if you like.
  • Whisk the curd before using it, to make it lump-free. You can also use yogurt instead of curd.
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