Kadai Paneer is a classic North Indian dish featuring soft paneer cubes, bell peppers, and onions in a bold, spiced tomato gravy. It's beloved for its smoky, aromatic flavors and signature chunky texture—just like your favorite Indian restaurant!
This recipe brings you that authentic taste, but is streamlined for home cooks. No special equipment or hard-to-find spices needed. If you’re craving a vegetarian main that truly delivers, this is it. Get ready for a dish that’s ready in under an hour and sure to impress.
2 tbsp heavy cream or coconut cream (optional, for richness)
Fresh cilantro, chopped, for garnish
Instructions
Dry roast coriander, cumin, peppercorns, dried chilies, and fennel seeds in a skillet over medium heat for 2 minutes until fragrant. Cool and grind to a coarse powder. Mix with garam masala; set aside.
Heat oil in a large skillet or kadai over medium-high. Add onions and sauté until translucent, 3-4 minutes.
Stir in ginger-garlic paste and green chilies. Cook for 1 minute until aromatic.
Add chopped tomatoes and cook until softened, 3-4 minutes.
Pour in tomato puree. Cook, stirring, until oil begins to separate (about 5-7 minutes).
Add bell peppers and sauté for 2-3 minutes (they should stay crisp).
Sprinkle in the prepared Kadai Masala and salt. Mix well.
Add paneer cubes and 1/4 cup water. Stir gently to coat paneer with masala.
Crumble in kasuri methi and add sugar. Simmer for 3-4 minutes. Stir in cream if using.
Garnish with cilantro. Serve hot with naan, roti, or rice.
Make It Your Way
Instant Pot Version
Use sauté mode for steps 1-5. After adding the paneer and water, secure the lid and cook on Manual (High) for 1 minute. Quick release, finish with kasuri methi, sugar, and cream.
Air Fryer Version
Air fry the paneer cubes at 375°F (190°C) for 6-8 minutes for a firmer, golden texture before adding to the sauce.
Ingredient Substitutions
If kasuri methi is unavailable, skip or use a pinch of celery seed. Substitute paneer with extra-firm tofu for a vegan version. Use canned tomato puree or passata if fresh tomatoes aren't available. Dried red chilies can be swapped with 1/2 tsp red chili flakes.
Expert Tips
Use fresh paneer or soak store-bought paneer cubes in hot water for 10 minutes to soften.
Dry roasting whole spices for the Kadai Masala is key to authentic flavor—don't skip this step.
Keep bell peppers crisp by cooking them briefly; overcooking makes them mushy.
Kasuri methi adds a signature aroma but use sparingly to avoid bitterness.
For extra richness, add a splash of heavy cream or coconut cream at the end.
Paneer can be lightly pan-fried before adding for a firmer texture.
What to Serve It With
Serve Kadai Paneer hot with soft naan, roti, or steamed basmati rice. Pair with a simple cucumber raita or a crisp salad for a complete meal.
Storage & Reheating
Store leftovers in an airtight container in the fridge for up to 3 days. Reheat gently on the stove or in the microwave. Paneer does not freeze well as it can become crumbly.
Frequently Asked Questions
What is Kadai Paneer?
Kadai Paneer is a North Indian curry made with paneer, bell peppers, onions, and a freshly ground spice blend called Kadai Masala.
Can I make Kadai Paneer vegan?
Yes! Substitute paneer with extra-firm tofu and use coconut cream or a vegan alternative instead of dairy cream.
Is Kadai Paneer spicy?
It has a medium heat level, but you can adjust the number of chilies to make it milder or spicier to your taste.
Can I use store-bought Kadai Masala?
You can, but freshly ground spices give the best flavor. If using store-bought, use 2-3 teaspoons.
How do I keep paneer soft?
Soak paneer cubes in hot water for 10 minutes before cooking, or add them at the very end and simmer briefly.
What can I use instead of kasuri methi?
If unavailable, skip it or use a small pinch of celery seed for a similar aromatic note.
Can I freeze Kadai Paneer?
Freezing is not recommended as paneer tends to become crumbly after thawing.
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