Kadai Paneer Recipe | How to Make Spicy Kadai Paneer Dry & Gravy

Kadai paneer is a restaurant style spicy paneer recipe made with fresh ground kadai masala, paneer, onions, tomatoes & bell peppers. It is a full of flavors and one of the tasty paneer gravy recipes you can make at your home.

Ingredients (1 Cup = 250ml )

Ingredients for kadai masala

  • 2 tablespoons coriander seeds (daniya)
  • 4 dried red chilies (kashmiri or less spicy variety)
  • ¾ teaspoon fennel seeds (saunf) (optional but recommended)

Other for kadai paneer gravy

  • 1 cup onions (sliced or chopped, 2 large)
  • 1 cup tomatoes (chopped, 2 large)
  • 8-10 cashew nuts (can substitute with 3 tbsp cream)
  • 1 teaspoon ginger garlic paste or crushed
  • ½ teaspoon red chili powder (optional, just for color)
  • ½ to ¾ teaspoon garam masala
  • ¾ teaspoon kasuri methi (dried fenugreek leaves)
  • ¾ teaspoon salt (adjust to taste)
  • ½ to 1 teaspoon ginger julienne
  • 2 tablespoons coriander leaves (cilantro chopped finely)
  • 2 tablespoons oil (divided – ½ + ½ + 1 tbsp)
  • ¾ to 1 cup water for gravy

Other Ingredients

  • 1 onion Optional (medium, cubed, layers separated)
  • ½ cup capsicum (bell peppers cubed)
  • 250 grams paneer (Indian cottage cheese)



  • To a small grinder jar, add red chilies, fennel seeds (optional) and coriander seeds. Make a fine powder and keep aside.
  • Heat ½ tablespoon oil in a pan. Add 1 cup chopped onions & 8-10 cashew nuts. Saute them on a medium high flame until the onions turn transparent or pink. 
  • Add 1 cup chopped tomatoes and saute until completely mushy.
  • Cool this completely and add to a blender jar. Blend to a smooth paste or puree. Put this aside.
  • To the same pan, add ½ tablespoon oil and heat it. 
  • Saute 1 cubed onion and capsicum on the highest flame until half done. They must be slightly tender and yet crunchy. 
  • Add paneer and toss for 1 to 2 mins. Put all these aside. Do not over fry these.

How to make kadai paneer

  • Heat 1 tbsp oil and saute 1 tsp ginger garlic paste until the raw smell goes off.
  • Next transfer the ground kadai masala and saute for 2 to 3 mins until it turns fragrant. Ensure the raw flavor has gone from the masala.
  • Add the ground onion tomato paste and saute for 2 mins. 
  • Next add garam masala and red chili powder. Saute for another 2 mins until the masala turns fragrant.
  • Pour ¾ cup water and salt. Allow it to boil until the gravy thickens and traces of oil appear on top. 
  • Then crush and add kasuri methi. Stir well again. Taste the gravy and add more salt as needed.
  • Add the sauteed paneer, capsicum and onion.
  • Stir well & finally add ginger juliennes and coriander leaves. 
  • 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.
  • Enjoy kadai paneer gravy with roti, butter naan, paratha or jeera rice.

NUTRITION (estimation only)

Calories: 255kcal | Carbohydrates: 15g | Protein: 11g | Fat: 17g | Saturated Fat: 9g | Cholesterol: 41mg | Sodium: 104mg | Potassium: 357mg | Fiber: 4g | Sugar: 6g | Vitamin A: 810IU | Vitamin C: 35.8mg | Calcium: 353mg | Iron: 1.6mg


Kadai paneer 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 paneer 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.

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