Kadai Paneer
Kadai paneer is a delicious North Indian dish made with paneer, kadai masala & bell peppers . Try this awesome gravy & semi-dry recipe..
- Total time
- 35 min
- Active time
- 10 min
- Yield
- 4, 4 people
- Difficulty
- Medium

Ingredients and Constraints
Ingredients
- Optional
Ingredient watchpoints9 watchpoints
Short requirements and tradeoffs to check while gathering ingredients; detailed source notes stay expandable.
Onion
1 cup (125 grams) onions ((sliced or diced, 1 large))
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Tomatoes
1½ to 2 cups (300 grams) tomatoes ((chopped, 2 large or 3 medium))
The source row includes a form, size, temperature, preparation, or handling detail.
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Oil
1 to 1½ tablespoon oil (or ghee (divided ½ + ½))
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Ginger Garlic Paste
1 teaspoon ginger garlic paste ( or crushed)
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Kashmiri Red Chilli Powder
½ teaspoon Kashmiri red chili powder ((adjust to taste))
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Garam Masala
½ teaspoon garam masala ((adjust to taste))
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Salt
½ to ¾ teaspoon salt ((adjust to taste))
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Onion
1 onion (Optional (medium, cubed, layers separated))
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Coriander Leaves
2 tablespoons coriander leaves ((cilantro chopped finely))
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Additional ingredient notes
How is Kadai Masala made?
Kadai masala is a unique blend of spices specially used to make kadai dishes.
It is much more flavourful and stronger than the regular garam masala that is used in regular Indian cooking. Kadai masala is made with coriander seeds, red chilies, cloves, cardamoms, cinnamon & fennel seeds. These whole spices are dry roasted to bring out the aroma and then ground to a slightly coarse powder. Here coriander seeds are used in higher quantity than it is used for the regular garam masala. So if you do not have all of these spices, then the simple trick is to use coriander seeds, red chilies & garam masala. Since most garam masala powders already have cinnamon, cloves, cardamoms and fennel seeds, sometimes I go the easy way and use coriander seeds, red chilies & garam masala. Related Paneer Recipes. Dhaba Paneer Curry Paneer Butter Masala Paneer Lababdar Malai Kofta Palak Paneer Matar Paneer Photo Guide.
Substitutions:
You can use any store bought kadai masala.
For a creamy version you can also use a few tablespoons of cream towards the end. You can easily substitute tofu for paneer in the recipe. If you do not eat onions and garlic, you may skip both of them completely. Without onions the dish will be on the tangy side. So to balance that you may need to add some cream at the last stage. Without onions, the quantity of the prepared kadai paneer will be lesser. For the gravy version, I have used cashews. You may substitute them with blanched almonds.
Notes
Make sure your dried chilies are not too hot else the dish can turn out too spicy.
Kadai masala is usually made of coriander seeds, red chilies, cardamom, cinnamon, cloves, jeera, saunf, pepper and a small piece of bay leaf. But coriander seeds are used in higher quantity when compared to any garam masala. Kadai masala can be made using all the above mentioned ingredients or can be substituted with any garam masala plus additional coriander seeds and dry red chilies.
Before You Cook
Constraints, controls, and warnings to review before starting.
Decisions before cookingDetails1
Reviewed comparisons and tradeoffs that affect the path before the first active step.
Faqs
What is in kadai paneer?
Bell peppers, onions, tomatoes, ginger, garlic, paneer, kadai masala (coriander, red chilies, cardamoms, fennel seeds, cloves and cinnamon) go into kadai paneer. What is the difference between kadai paneer and shahi paneer? Kadai paneer is made with kadai masala, bell peppers, tomatoes, kasuri methi & paneer. But shahi paneer uses none of these ingredients except for paneer. Kadai paneer is spicy & not creamy or sweet. But Shahi paneer is creamy, sweetish and is not spicy. How to reduce heat & spice in kadai paneer? To reduce the heat & spice, skip the red chilies completely or cut down to half the quantities in the recipe. If your cooked kadai paneer is too spicy and hot, then you can bring down the heat by adding some dairy cream or cashew cream.
Method Overview
Structured method notes that are separate from the step timeline.
Make Kadai Paneer Gravy
Add 1½ to 2 cups water and add ½ teaspoon salt.
Mix well and bring this to a boil on a medium high heat. Reduce the heat and cook until the gravy turns thick and flavorful. Make sure the gravy doesn’t look runny at this stage. After boiling it well, you will see traces of oil on top of the gravy. Next towards the end add 1 teaspoon crushed kasuri methi. Add the sauteed onion, capsicum and paneer that we had set aside. Mix well and turn off the stove. Taste test and add more salt and garam masala if required.
How to make best kadai paneer
Always saute the powdered kadai masala in oil until it turns fragrant.
This is the key to an aromatic kadai paneer. Smoky flavour: Kadai paneer served in some restaurants get a mild smoky flavor as the bell peppers & onions are tossed on a high flame on large burners. To get similar flavors toss the veggies on the highest flame as mentioned in the recipe. This lends a mild smoky aroma to the dish.
Source video
Source video
Method Timeline
Prep
ActivePrep
10 min
Prep time from the source recipe card.
Cook
ActiveCook
25 min
Cook time from the source recipe card.
Total
PassiveTotal
35 min
Total time from the source recipe card.
Step 1
To a small grinder jar, add red chilies, cardamoms, fennel seeds, coriander seeds, cloves & cinnamon. If you add more cinnamon it can ruin the dish. Make a fine powder and keep aside.

Image detailsspices for kadai masalaSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference 
Image detailsMake Kadai MasalaSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Inputs and tools7
Uses
- ½ teaspoon Kashmiri red chili powder ((adjust to taste))
- ¼ inch cinnamon ((Ceylon cinnamon and not cassia))
- 2 cloves
- 1 teaspoon fennel seeds ((saunf))
- 2 to 3 green cardamoms
- 1 to 2 Kashmiri dried red chilies ((deseeded, less spicy variety, leave out for kids))
- 1½ tablespoons coriander seeds ((daniya, I use 2 tbsps))
Step 2
Heat oil in a pan. Add onions & cashew nuts. Saute them on a medium high flame until the onions turn transparent or pink.

Image detailsfrying onions cashews to make kadai paneer gravy recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until the onions turn transparent or pink.
Checks1
Visual cueInfoVisualuntil the onions turn transparent or pink.
Expected state: until the onions turn transparent or pink.
Inputs and tools5
Uses
- 1 tablespoon oil
- 1 cup (125 grams) onions ((sliced or diced, 1 large))
- 6 cashew nuts ((can substitute with 3 tbsp cream))
- 1 to 1½ tablespoon oil (or ghee (divided ½ + ½))
- 1 onion (Optional (medium, cubed, layers separated))
Why and source
This step has reviewed source-backed guidance.
Step 3
Add tomatoes and saute until completely mushy.

Image detailscooking tomatoes for making kadhai paneer recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference 
Image detailsroasted ingredients for blendingSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until completely mushy.
Checks1
Visual cueInfoVisualuntil completely mushy.
Expected state: until completely mushy.
Inputs and tools1
Uses
- 1½ to 2 cups (300 grams) tomatoes ((chopped, 2 large or 3 medium))
Why and source
This step has reviewed source-backed guidance.
Step 4
Cool this completely and add to a blender jar. Blend to a smooth paste or puree. Set this aside.

Image detailsaddition of onion tomato to blender for kadai paneer gravy recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference 
Image detailssmooth masala paste for kadai paneer recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Checks1
HoldingMain recipeSource holding instruction
Cool this completely and add to a blender jar. Blend to a smooth paste or puree. Set this aside.
Inputs and tools1
Uses
- 1 teaspoon ginger garlic paste ( or crushed)
Why and source
This step has reviewed source-backed guidance.
Step 5
To the same pan, add oil and heat it.
Step 6
Saute onion and capsicum on the highest flame until half done. They must be slightly tender yet crunchy.

Image detailsfrying capsicumSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference 
Image detailssauteing veggies for kadai paneer recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until half done.
Checks1
Visual cueInfoVisualuntil half done.
Expected state: until half done.
Inputs and tools1
Uses
- ½ cup capsicum ((bell peppers cubed))
Why and source
This step has reviewed source-backed guidance.
Step 7
Add paneer and toss for 1 to 2 mins. Set all these aside. Do not over fry these.
Step 8
Heat the rest of the oil and saute ginger garlic paste until the raw smell goes off.

Image detailssauteing ginger garlic to make kadai paneerSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until the raw smell goes off.
Checks2
Visual cueInfoVisualuntil the raw smell goes off.
Expected state: until the raw smell goes off.
HoldingMain recipeSource holding instruction
Heat the rest of the oil and saute ginger garlic paste until the raw smell goes off.
Inputs and tools2
Uses
- 1 to 1½ tablespoon oil (or ghee (divided ½ + ½))
- ½ to 1 teaspoon ginger (julienne)
Why and source
This step has reviewed source-backed guidance.
Step 9
Next transfer the ground kadai masala and saute on a low to medium heat for 2 to 3 mins until it turns fragrant. Do not burn.
medium heat
Image detailssauteing kadhai masalaSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until it turns fragrant.
Checks2
Visual cueInfoVisualuntil it turns fragrant.
Expected state: until it turns fragrant.
TimingInfoTimingfor 2 to 3 mins
Target: 2-3 minute
Expected state: Next transfer the ground kadai masala and saute on a low to medium heat for 2 to 3 mins until it turns fragrant.
Inputs and tools1
Uses
- ½ teaspoon garam masala ((adjust to taste))
Why and source
This step has reviewed source-backed guidance.
Step 10
Add the ground onion tomato paste and saute for 2 mins.

Image detailsaddition of puree to cook kadai paneer recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Checks1
TimingInfoTimingfor 2 mins
Target: 2 minute
Expected state: Add the ground onion tomato paste and saute for 2 mins.
Why and source
This step has reviewed source-backed guidance.
Step 11
Next add garam masala and red chili powder. Saute for another 2 mins until the masala turns fragrant.

Image detailsaddition of garam masala to make kadai paneerSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference 
Image detailsfrying the spice blends with pureeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until the masala turns fragrant.
Checks2
Visual cueInfoVisualuntil the masala turns fragrant.
Expected state: until the masala turns fragrant.
TimingInfoTiminganother 2 mins
Target: 2 minute
Expected state: Saute for another 2 mins until the masala turns fragrant.
Why and source
This step has reviewed source-backed guidance.
Step 12
Pour 1 cup water and salt. If you feel the gravy is too thick, pour ¼ to ½ cup more water. Allow it to boil until the gravy thickens and traces of oil appear on top.

Image detailsaddition of water to make kadai paneer gravySwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Visual cue
until the gravy thickens and traces of oil appear on top.
Checks1
Visual cueInfoVisualuntil the gravy thickens and traces of oil appear on top.
Expected state: until the gravy thickens and traces of oil appear on top.
Inputs and tools3
Uses
- 1 to 1½ tablespoon oil (or ghee (divided ½ + ½))
- ½ to ¾ teaspoon salt ((adjust to taste))
- 1½ to 2 cups water (for gravy)
Why and source
This step has reviewed source-backed guidance.
Step 13
Then crush and add kasuri methi. Stir well again. Taste the gravy and add more salt or garam masala as needed.

Image detailsaddition of kasuri methi for kadai paneer recipeSwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Inputs and tools1
Uses
- 1 teaspoon kasuri methi ((dried fenugreek leaves))
Step 14
Add the sauteed paneer, capsicum and onion.
Step 15
Stir well & finally add ginger juliennes and coriander leaves.

Image detailsginger coriander leaves for garnishing kadai paneer gravySwasthis Recipes · Kadai Paneer Recipe (Dry & Gravy)Dev reference Inputs and tools1
Uses
- 2 tablespoons coriander leaves ((cilantro chopped finely))
Step 16
Cover and rest for 2 mins. Transfer to a serving bowl and rest for at least 15 mins for the paneer to absorb the flavors.
Step 17
Enjoy kadai paneer gravy with roti, butter naan, paratha or jeera rice.
Learn More
Extra cooking notes, tests, and source details kept out of the step-by-step method.
Testing notes
Useful tests and side-by-side notes after the method is clear.
Pro Tips
Kadai masala: The key to a good kadai paneer is in using the right combination of spices to make kadai masala.
So use them as mentioned in the recipe. Substituting it with a regular or normal garam masala will give you a regular paneer curry. However it will still taste good but you won’t find any kadai flavors in it. Dry roasting the whole spices before grinding is optional. But if you do not have a good grinder/blender then you may roast them to crisp up. I do not roast them as I keep all my spices in the fridge and they remain crisp. Dried red chilies are used in this recipe as they impart a smoky flavour to the dish. Using good quality dried red chilies that are not too spicy or pungent is very important. I usually use Kashmiri or byadgi red chilies.
Testing photos
Photos that support the article's cooking notes.

Source: Kadai Paneer Recipe (Dry & Gravy)
Recipe structure
Components and intermediate outputs created by the method.
Main recipe
Recipe card ingredients and steps.
4, 4 people
Paste
Source step 4 creates or uses paste.
Extra useful notes
Short source-backed recommendations and facts that do not need a step.
Make sure your dried chilies are not too hot else the dish can turn out too spicy.
Make sure your dried chilies are not too hot else the dish can turn out too spicy. Leave out for kids.
Kadai masala is usually made of coriander seeds, red chilies, cardamom, cinnamon, cloves, jeera, saunf, pepper and a small piece of bay leaf.
Kadai masala is usually made of coriander seeds, red chilies, cardamom, cinnamon, cloves, jeera, saunf, pepper and a small piece of bay leaf. But coriander seeds are used in higher quantity when compared to any garam masala.
Kadai masala can be made using all the above mentioned ingredients or can be substituted with any garam masala plus additional coriander seeds and dry red chilies.
Kadai masala can be made using all the above mentioned ingredients or can be substituted with any garam masala plus additional coriander seeds and dry red chilies.
Video for recipe 2 – kadai paneer dry. You can find the written instructions for this recipe as well in this post.
Video for recipe 2 – kadai paneer dry. You can find the written instructions for this recipe as well in this post.
Mention @SwasthisRecipes or tag #swasthisrecipes!
Mention @SwasthisRecipes or tag #swasthisrecipes!
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Kadai Paneer Recipe (Dry & Gravy)
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