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Kadai Paneer Gravy

4 from 1 vote

Kadai Paneer gravy is a delectable spicy gravy and commonly ordered in most of the Indian restaurants as a side dish for all Indian breads. Paneer is cooked in gravy made of onions, tomatoes, cashews and traditional Indian spices. My family is fond of paneer recipes and I always love making variety of paneer recipes. We enjoyed the mild smoky flavor of this recipe having cooked in Kadai.
Prep Time 20 minutes
Cook Time 30 minutes
Total Time 50 minutes
Served AsDinner, Lunch
CuisineNorth Indian
Servings 3


  • Puree for the gravy : 1 tbsp oil
  • 1 inch ginger
  • 6 garlic pods
  • 1 medium sized onion diced
  • 2 medium tomatoes diced
  • 12 whole cashews
  • ½ tsp kashmiri chilli powder
  • ½ tsp red chilli powder
  • ½ tsp turmeric powder
  • ¼ cup water
  • Masala : 2 or 3 spicy Red chillies dried (like Guntur variety)
  • 2 ½ tsp coriander seeds
  • ½ tsp whole pepper corns
  • 1 tsp cumin seeds
  • Kadai paneer : 1 ½ tbsp oil
  • 1 small onion cubed
  • 1 green chili
  • 1 small bay leaf
  • 200 Gms paneer cubed
  • 1 small or ½ capsicum cubed
  • Salt
  • ¾ tsp garam masala
  • ½ to ¾ cup water as required
  • ¼ tsp finely crushed kasuri methi
  • ½ tsp chopped coriander leaves
  • 1/8 cup 2 tbsp cream (Optional)


  • Puree for gravy : Heat oil in a kadai.
  • Sauté ginger and garlic.
  • Add onion and fry until they turn translucent.
  • Add tomato and cashews, fry for few minutes.
  • Add turmeric, kashmiri chili powder and red chili powder, sauté until the raw smell wafts away.
  • Turn off the flame and allow it to cool.
  • Grind to a fine puree using 1/4 cup of water.
  • Masala : Dry roast the spices of the masala section in the following order (Coriander seeds, cumin seeds, pepper corn and dry chilies) until they turn aromatic. Take care not to char the spices.
  • Allow it to cool, and grind it coarsely.
  • Kadai Paneer : Heat oil in a kadai, add the bay leaf and green chili. Sauté for few seconds
  • Fry the cubed onions and capsicum and saute for few seconds on high flame. Do not fry for a long time as the crunchiness of the veggies needs to be retained.
  • Add the puree and boil for 1 – 2 minutes.
  • Add 1 ½ tbsp of prepared masala powder.
  • Add salt and water and allow it to cook for 3 minutes.
  • Add the paneer cubes and garam masala. Cover and cook until the paneer is cooked completely (not more than 4 – 5 minutes).
  • Once the gravy consistency is reached, add kasuri methi and give a gentle mix. Turn off the flame.
  • Mix cream (optional) and garnish with coriander leaves.
  • Serve with hot chapathis or naan or phulkas.

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4 from 1 vote

Rajeswari Annamalai
Rajeswari Annamalai

Software professional turned into home maker and baker :)

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