Kadai Paneer (Kadhai Paneer, Karahi Paneer) is a popular Indian curry made using paneer, onions, and green bell peppers cooked in spicy and flavorful gravy made using freshly ground kadai masala. It is one of the most popular dishes ordered in any Indian restaurant. Learn to make it at home using my easy recipe (vegetarian, gluten-free).

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About Kadai Paneer
Kadai Paneer (Kadhai Paneer, Karahi Paneer) is one of the most popular paneer recipes from the northern part of India.
Kadai = a large and shallow cooking pot and paneer = Indian cottage cheese.
Kadhai paneer is basically paneer, onions, and green bell pepper cubes cooked in a spicy onion-tomato-based gravy flavored with a freshly ground homemade kadai masala spice mix.
This special spice powder gives this curry a very unique flavor.
You will find this delicious recipe on the menu of almost every North Indian Restaurant. But let me tell you, this is a super simple recipe that can be made using a few basic ingredients in the comfort of your home.
You can make it with gravy, dry or semi-dry, that’s totally up to you. This dish can also be made without onion and garlic. I am sharing the methods below, so keep reading.
I am also sharing a technique to make the curry super smoky, just like the one you get at your favorite restaurant.
So paneer lovers, waste no time and make this restaurant-style kadai paneer recipe at home using my super easy recipe.
This recipe is vegetarian and gluten-free. You can easily double or triple it too.
Here are some more paneer recipes that you may like
- Paneer Tikka Masala
- Lahsooni Methi Paneer
- Paneer Masala
- Restaurant Style Palak Paneer
- Paneer Pasanda
- Restaurant Style Paneer Tikka Masala
- Paneer Butter Masala
- Paneer Bhurji
- Paneer Kathi Roll
- Dry Paneer Bhurji
- Paneer Korma
Ingredients



Kadai Masala – The curry gets its flavor from freshly ground kadai masala.
You will need whole spices like whole coriander seeds, whole dry red chillies, fennel seeds (saunf), cumin seeds, cloves (laung), black cardamoms (badi elaichi), black peppercorns (kali mirch), and cinnamon sticks (dalchini) to make it.
Paneer – Paneer is the star ingredient of this recipe. Paneer is Indian cottage cheese that is very different from the regular cottage cheese that you get commonly.
It is readily available in any Indian grocery store in their refrigerator or freezer section. Paneer is also available in many large grocery stores (Costco, Trader Joe’s, Whole Foods, etc) in the refrigerator section.
If using frozen paneer, make sure to thaw it until it is soft.
Sometimes the store-bought paneer is hard and chewy. In that case, soak it in warm water for 10 minutes before using it in the recipe.
Green Bell Peppers (Capsicum) – These add a lovely crunch to the gravy. You can also use mixed bell peppers.
Onions – Onions are required in 2 different ways, cubed and petals separated and finely chopped.
Spice Powders – You will need Kashmiri red chilli powder and garam masala powder. You can also add a little turmeric powder for a brighter color of the curry.
Tomatoes – Tomatoes add a lovely tang to the curry. You will need finely chopped ripe tomatoes and canned tomato puree. You can replace tomato puree with tomato paste but reduce its quantity as it is more concentrated.
Oil – Use any cooking oil to make the curry. A little ghee is added at the end to give it a rich flavor
Others – Apart from the above-mentioned ingredients, you will also need green chilies, ginger-garlic paste, and freshly squeezed lime juice.
You can also add some Kasuri Methi at the end for extra taste and flavor.
If you want to make it richer, add some unsweetened heavy cream at the end.
How To Make Kadai Paneer
Preparation
Rinse 8 oz (250 g) paneer, 1 large green bell pepper, and 1 large onion and cut them into 1-inch cubes.
Note – If using frozen paneer, make sure to thaw it.
Finely chop 1 medium red onion and 1 large tomato and slit 2-3 green chilies into half.
Gather the remaining ingredients.
Make Kadai Masala
Add
- 2 tablespoon whole coriander seeds
- 3-4 Kashmiri dry red chilies
- 1 teaspoon fennel seeds
- 1 teaspoon cumin seeds
- 2-3 cloves
- 2 whole black cardamoms
- 5-6 whole black peppercorns
- 1-inch piece of cinnamon stick
to a small skillet.

Dry roast on medium heat until lightly browned and fragrant (3-4 minutes), stirring continuously.
Remove the skillet from the heat and let the spices cool slightly.
Add them to a grinder or a food processor and grind them to make a fine powder. Your kadai masala is ready.
Tip – You can also make a big batch of this masala and keep using it for up to a month.


Make Kadai Paneer Curry
Heat 1 tablespoon oil in a pan over high heat.

Once the oil is hot, add
- 1 cup cubed onions (1-inch cubes, petals separated)
- 1 cup cubed green bell peppers (1-inch pieces)
and saute until they are slightly charred (3-4 minutes). You want them to be slightly crunchy.
Remove on a plate and set aside.

In the same pan, add the remaining 3 tablespoon oil and heat it on medium-high heat.
When the oil is hot, add ½ cup finely chopped onions and cook until they are lightly browned (4-5 minutes), stirring frequently.

Add 2-3 green chilies (slit into half) and 2 teaspoon ginger garlic paste and cook until onions turn golden brown in color (6-8 minutes). Stir frequently while frying.

Now add
- ¼ cup canned tomato puree (or 2 tablespoon tomato paste)
- ½ cup finely chopped tomatoes
and cook for 2-3 minutes.

Add
- ground kadai masala powder
- 1 teaspoon salt
- 1 teaspoon Kashmiri red chili powder
- 1 teaspoon garam masala powder
and mix well.

Add half a cup of water and cook for 2-3 minutes. Stir at regular intervals.

Finally, add 8 oz (250 g) paneer (cut into 1-inch cubes), and the sauteed onions and bell peppers and cook for 2-3 minutes. Add some hot water if the gravy is too thick.

Cook until oil starts to separate from the sides (2-3 minutes).
Note – This recipe will make semi-dry gravy. If you want more gravy, then add some hot water and bring the curry to a boil. If you want it dry, then cook it for a few minutes until the curry is dry.
Check for salt and add more if needed.
Add 1 tablespoon ghee and 1 tablespoon lime juice and mix well.
Serve hot.


Secret Technique For Smoky Flavor
You can give a smoky flavor to your kadhai paneer by using the dungar method.
Do not skip this smoking step if you want that restaurant-like taste in your homemade Kadai Paneer curry. But if you are in a hurry and want to make it without smoking, go ahead. It will still taste very good.
Heat a piece of charcoal or a whole cinnamon stick for 5-6 minutes over an open flame until it is red hot. Keep rotating it using a tong so that it heats evenly on all sides.
Keep a piece of aluminum foil over the curry and keep the piece of hot coal over it. Pour 1 tablespoon ghee on the hot coal and immediately close the lid for 15-20 minutes. Open the lid, discard the coal, and give the curry a stir.
Pro Tips By Neha
This recipe always tastes best when kept for one day. So you can make it one day in advance and reheat it when you are serving it.
Smoke the finished curry to get the restaurant-style smoky taste. If making it for everyday eating, you can skip smoking the gravy. Reserve the flavor for special occasions.
You can make the kadai masala powder in a big batch and store it for later use.
You can add more water if you like the gravy thin. Bring it to a boil and let simmer for 5 minutes. Then cover and let it rest for at least an hour before serving.
Frequently Asked Questions
Kadai paneer is a spicy gravy recipe that uses a lot of spices to give it a robust bold flavor.
However, paneer butter masala is a sweetish creamy cashew nut and tomato-based curry that uses mild spices and nuts. The gravy is much more subtle and rich and is slightly on the sweet side.
Karahi paneer has bell pepper added to the gravy along with paneer to give it that crunchy bite however in paneer butter masala, it’s only the paneer.
Shahi paneer as the name suggests is a rich and creamy curry that is made using almonds and cashews without the use of tomatoes which is flavored with everyday spices, whereas kadai paneer is made using a freshly roasted masala that adds a unique flavor to it.
Also, kadhai paneer has bell pepper as one of the main ingredients, which is not used in shahi paneer.
Variations
Vegan – To make a vegan kadhai paneer, you can replace the paneer with tofu and ghee with coconut oil.
No Onion No Garlic – Just skip adding these two ingredients and keep the rest of the recipe the same.
With Other Veggies – You can add sliced mushrooms, peas, cauliflower, etc to this curry along with paneer.
Serving Suggestions
Restaurant Style Kadai Paneer tastes great with any Indian bread like Roti, Lachha Paratha, Tandoori Roti, Butter Naan, Garlic Naan, or Tawa Paratha.
You can make the gravy a little thinner and serve it with Steamed Rice, Jeera Rice, or Veg Pulao.
Storage Suggestions
This curry will last in the fridge for 2 to 3 days when stored in an airtight container. Reheat it in a pan or microwave, until nice and hot.
If you are planning to freeze it, I recommend you freeze the gravy without adding paneer to it. When ready to serve, thaw the curry, heat it well, add paneer cubes, cook it for 2-3 minutes, and serve.
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Recipe Card

Restaurant Style Kadai Paneer Recipe
Ingredients
For Kadai Masala
- 2 tablespoons whole coriander seeds
- 3-4 whole Kashmiri dry red chilies (stalks removed)
- 1 teaspoon fennel seeds (saunf)
- 1 teaspoon cumin seeds
- 2-3 cloves (laung)
- 2 whole black cardamoms (badi elaichi)
- 5-6 whole black peppercorns (kali mirch)
- 1 inch piece of cinnamon stick (dalchini)
For The Curry
- 4 tablespoons oil (divided)
- 1 cup cubed green bell peppers (1-inch cubes)
- 1 cup cubed onions (1-inch cubes, petals separated)
- ½ cup finely chopped onions
- 2 green chilies (slit into half)
- 2 teaspoons ginger garlic paste
- ½ cup finely chopped tomatoes
- ¼ cup canned tomato puree (or 2 tablespoon tomato paste)
- 1 teaspoon salt (or to taste)
- 1 teaspoon Kashmiri red chilli powder
- 1 teaspoon garam masala powder
- 8 ounces paneer (250 g, cut into 1-inch cubes)
- 1 tablespoon ghee
- 1 tablespoon freshly squeezed lime juice
Instructions
Make Kadai Masala
- Add all the ingredients to a small skillet.
- Dry roast on medium heat until lightly browned and fragrant (3-4 minutes), stirring continuously.
- Remove the skillet from the heat and let the spices cool slightly.
- Add them to a grinder or a food processor and grind them to make a fine powder. Your kadai masala is ready.
Make Kadai Paneer Curry
- Heat 1 tablespoon oil in a pan over high heat.
- Once the oil is hot, add cubed onions and cubed green bell peppers and saute until they are slightly charred (3-4 minutes). You want them to be slightly crunchy.
- Remove on a plate and set aside.
- In the same pan, add the remaining 3 tablespoon oil and heat it on medium-high heat.
- When the oil is hot, add chopped onions and cook until they are lightly browned (4-5 minutes), stirring frequently.
- Add green chilies and ginger garlic paste and cook until onions turn golden brown in color (6-8 minutes). Stir frequently while frying.
- Now add tomato puree and chopped tomatoes and cook for 2-3 minutes.
- Add the ground kadai masala powder, salt, chili powder, and garam masala powder, and mix well.
- Add ½ cup of water and cook for 2-3 minutes. Stir at regular intervals.
- Finally, add paneer and the sauteed onions and bell peppers and cook for 2-3 minutes. Add some hot water if the gravy is too thick.
- Cook until oil starts to separate from the sides (2-3 minutes).
- Note – This recipe will make semi-dry gravy. If you want more gravy, then add some hot water and bring the curry to a boil. If you want it dry, then cook it for a few minutes until the curry is dry.
- Check for salt and add more if needed.
- Add ghee and lime juice and mix well.
- Serve hot.
Chandni
I made this for dinner today! If was pretty good. I used chopped green bell pepper and chopped purple onion in it. I will say that I would skip the peppercorn next time because I wasn’t a fan of the back spice it gave the dish, but I overall really liked the spices in this. Tasted similar in spice complexity to really good kadai paneer I’ve had at restaurants! I think I would add a bit more of the chopped onions+tomato+ tomato paste next time to make the gravy a bit chunkier [granted, I added extra water]. This made 5 servings. The lemon really added a good flavor and cut the spice a little. I paired it with some garlic naan, and it was a pretty good meal.
Neha Mathur
Nice
PRANITA DESHPANDE
I liked the discipline of this site. Everything is very clear. Thanks for the nice recipe.
Neha Mathur
Thnx
PRANITA DESHPANDE
Your all recipes are fantastic, especially this one is fantastic.
Neha Mathur
Thnx 🙂
Neha
little different & twisty, must try.
Neha Mathur
Thnx 🙂
dtdc plus tracking
I am kind of foodie and i just love paneer dishes and this karahi paneer recipe looks delicious thanks a lot for posting this and currently i am working on my project dtdc plus tracking and whenever i will get spare time from that i will surely visit your site for more recipes.
Anindya Sundar Basu
Not a Paneer fan as such but the smoky flavour gives a separate flavour and elevates the dish. I am observing a recent change in all your recipes where are you are sharing pictures of the preparation.
I think that makes it more helpful
msnehamathur
Just trying to add some more value to the posts 🙂
palak bhatti
wow awesome recipe
msnehamathur
Thnx
Swasika Vikas
Hi Neha… I love cooking.. But im not as much perfect in your level of cooking…. but i will definitely try this… I haven’t tried any paneer dishes before… Now the time has come.. here prize goes to your pictures.. that made me crazy about this… ohhhh!!!! yummy.. anyway thnx for your recipe, keep posting..
msnehamathur
Thnx a lot Swasika. Do try the recipes and do not forget to leave your feedback 🙂
Sreela
Wow. Perfect restaurant style kadai dish. I never tried giving smoke to my recipes till now. Want to try after seeing this yummy preparation. Can u just guide me where can I find coal in Bangalore. Feeling confused seeing lots of coal varieties online. Don’t know which one to buy.
msnehamathur
You can buy the same coal that the press wala use. Ask them to give you a small piece.
John Samuel
Hai Neha, I am a big fan of variety of foods.You are a food stylist .Mouth watering Pictures.
msnehamathur
Thnx John.
msnehamathur
Thnx
chowringhee
This recipe sounds rich and delicious.. Very well made Fabulous recipe. Looks so so so yummy!
msnehamathur
Thnx
Restaurants in indore
This is perfect blog for anyone who is looking for topics like this. It has got it all, information, benefits and overview. A perfect piece of writing. Good job.
Fauzia Hashmi
Great recipe Neha… I m going to try it soon. I too love cooking and would like to meet you
Shweta Arora
Rich and delicious looking paneer dish, great clicks too
Maria John
Gorgeous clicks..mouth-watering..
nandoos Kitchen
perfect! Nice one
nandoos Kitchen
perfect, nice one dear.. Looks lovely!
nandoos Kitchen
perfect yummy paneer.. Nice one dear
foodiecorner
Looks perfect !! And beautiful snaps !!!