The Best Kadai Paneer Recipe (Video)

Kadai Paneer - the name that we all drool on!  A very popular Indian dish of soft paneer cooked with bell peppers, onion, tomato and freshly ground homemade kadhai masala. My restaurant style kadai paneer recipe is delicious, perfectly spiced and pairs best with naan and parathas. A must try dish for weekday or weekend meal all year round.

Paneer is one of the most common ingredient that goes in most Indian recipes. And to me, its best companion is capsicum and then green peas. I love cooking them together for my family very often.

About Kadai paneer

Kadai Paneer or Karahi Paneer is a delicious dish of paneer or Indian cottage cheese cooked in onion, tomato gravy with bell peppers and special freshly ground karahi masala. This masala powder offer a very delicate and unique flavor to the curry that really stands out from other paneer dishes.

Kadai paneer one of the most popular Indian paneer recipes and our favorite! It is that one dish many people frequently order at all Indian restaurant and dhaba worldwide.

The dish gets its name because it is cooked in special Indian wok called kadai or Karahi . We use kadhai mainly for stir fries, deep frying, tossing or basic Indian cooking. However, if you do not have one, not to worry. You can cook it in a simple wok or a regular pan.

The curry is really simple and easy to cook at home with a few basic pantry staples. Another good thing I love about this dish is, I can make it either dry or with gravy, and of course, you can too 🙂 .

Homemade kadai masala spice mix

The key to cooking good kadai paneer is this special spice powder - the kadhai masala. The unique mix of whole spices give the best of the flavors and aroma to the dish.

This masala has the blend of certain spices. They are whole coriander seeds, cumin seeds, black peppercorns, dried red chillies and a piece of cinnamon stick. The ratio of these whole spices plays a key role in giving the unique flavor to the kadai recipes.

Do keep in mind that coriander seeds should be in more quantity. Whereas cumin seeds should be ¼ quantity that of coriander seeds. The amount of dried red chilies is totally up to you to add. I would highly recommend you to go for the mentioned amount for the best result.

Some people like to add fennel seeds to the kadhai masala. Ideally, it doesn't need fennel seeds at all. However, you may add if you like. Dry roast the spices until it releases lovely aroma. Then, grind it to a coarse powder.

You can use this masala for kadhai sabzi, Indian style chicken or karahi gosht (mutton or beef) as well. Believe me, if you follow the mentioned ratio, you will a have fool proof homemade kadai masala recipe with you forever.

Storing the masala

You can make a big batch of it. Store it in clean airtight container up to a month on counter. It stays good up to 6 months in freezer.

So, to make big batch of kadai masala, increase the ratio in folds and go on ahead. I always store it in my freezer. So, the extra step of making masala saves so much of time. Cooking kadai paneer takes no time to get to the table, only 20 minutes. 🙂

Expert tips and ingredients substitutions

Paneer

Using fresh homemade paneer always makes a huge difference to any dish. The same goes here! You can use the store bought also, no harm! Just remember to do the following: you can either microwave the paneer cubes dipped in water for 2- 3 minutes. Or, just soak it in hot water for 5-7 minutes.

If you're looking for vegan version, then consider using tofu instead.

Kadai Masala

Please do not substitute this masala to any regular masala powder or even garam masala powders. I would insist on you to make this masala at home and use it. Homemade ground spices adds so much aroma and taste to the Kadai Paneer.

However, if you're genuinely in hurry to cook and you don't have this masala handy, then you can simply add coarsely crushed coriander seeds, red pepper flakes, roasted cumin powder and freshly ground black pepper. You will still have the flavor close to kadhai masala. Replacing it with garam masala powder is a big "NO".

Chillies

Use good quality dried red chillies to make kadai masala. I prefer using either Kashmiri red chilies or byadgi red chilies. Try not to use very spicy variety of chilies here. It will ruin the dish adding too much of heat.

I like to use Kashmiri chilies here because it gives both, subtle heat and the bright colour. I have not added green chilli in this recipe, but if you want the dish a little spicier, you may add 1-2 or as you like.

Ginger Juliennes

The another main ingredient for kadai dishes, they are incomplete without ginger juliennes. It adds up to further elate the flavor and the aroma. I would recommend do not skip this.

Tomato Puree or Paste

Addition of tomato puree gives intense restaurant and Dhaba flavor to kadai paneer. Try adding it! You can also use tomato paste. 1½ teaspoon tomato paste is good to go for 250 grams of paneer.

Sugar or Honey, Cream and Butter or Ghee

• Honey or sugar : you may use any of the two for flavor balance.
• Cream makes the gravy rich doing only good to the dish. For vegan variation, use cashew cream or coconut cream.
• Tiny bit of either of butter or ghee enhances the whole aura of this dish. Skip in case if you are vegan.

Variations

The two simple variations are kadai paneer gravy and kadai paneer dry. All you have to do is add water as per the amount of gravy you need. For dry version, skip adding water toss everything on high until every thing mixes well. That's it!

How to make best kadai paneer at home?

Making Kadai Masala

I start by gathering:

• 2 tablespoons coriander seeds,
• ½ teaspoons black peppercorns
• ½ tablespoon cumin seeds
• 1 inch cinnamon stick
• 4-5 dried red chilies

Then, place the spices in a small pan and dry roast until slight brown and releases nice aroma. I ensure they do not burn.

Transfer the dry roasted spices to a grinder jar and grind it to a coarse powder. Set it aside.

In a kadai or pan, heat 1 tablespoon oil. Add:

• ¼ cup Onion
• ¼ cup Tomato
•  ½ cup Capsicum

Fry on high for 1 minute only. Do not overcook as we want to retain the color, flavor and crunch of these veggies.

Then, transfer them onto a plate. Set it aside.

Making the gravy

Now, in the same kadhai heat:

• remaining 3 tablespoons oil
• 1 tablespoon butter or ghee.

Add 1 teaspoon cumin seeds and then fry for 20-30 seconds.

Then, add ½ cup finely chopped onions and sauté until soft and pink.

Add 1½ ginger garlic paste and 1 teaspoon ginger juliennes. Fry for few seconds until raw smell goes off.

Then, add the ¾ cup ground or grated tomato and mix. Cook for 2-3 minutes on high heat.

Now, add 1½ teaspoon Kashmiri red chilli powder, 1½ teaspoon coriander powder, ¾ teaspoon turmeric powder, prepared karahi masala powder and 3 tablespoons tomato puree. Sauté for 2-3 minutes on medium heat.

Add approx ½ cup water, and salt. Cook for another 4-5 minutes or until it starts releasing oil.

Then, add 3 tablespoons heavy cream and mix, cook for 1-2 minutes.

Now, add the sautéed tomato-onion-capsicum, paneer cubes and mix.

Add 1 teaspoon sugar or honey and cook for 1 minute only. I do not prefer cooking paneer for too long as it make them rubbery and chewy.

A secret for restaurant smoky flavor

Do you love to enjoy curries at home that tastes exactly like your favourite restaurant or dhaba? Give the charcoal dhungar to infuse smoky flavor to the dish. And you will never ever regret doing it.

Here's how you do it:

1. Place small steel bowl or a piece of foil over the gravy. Put hot charcoal in the bowl.
2. Pour a teaspoonful of ghee or oil over the hot coal.
3. Immediately cover the kadai with tight fitting lid and let it rest for 4-5 minutes. This will help in infusing the lovely smoky aroma to the gravy.
4. Finally, open the lid, discard the coal and sprinkle some more ginger juliennes.

Dish out and serve kadai paneer with hot naan, phulkas or parathas.

Serving Ideas

Kadai paneer makes a delicious meal menu for weeknight dinners. Pair it with delicious Garlic Naan , phulkas or Parathas. Just like I do, you can also serve it with some hot steamed rice, Vegetable Pulao, Spicy Matar Pulao, Jeera rice or Zafrani pulao.

Many other popular paneer gravies like Paneer Butter Masala, Matar Paneer, Palak Paneer and Paneer Bhurji also tastes so delicious with naan, rice that's perfect for weeknight dinners / weekend parties.

Storage Suggestion

To Store: Karahi paneer stays really well up to 4 days when stored properly in a clean air tight container. If you want to enjoy a portion for a meal, scoop out the required amount and reheat. In that case, I would highly recommend you to store in portions in small containers. Avoid reheating the whole again and again.