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    Whisk Affair » Recipes » Dal & Curries » Veg Curries » Restaurant Style Kadai Paneer (Dry & Gravy)

    Published: Nov 21, 2021 | Last Updated On: Nov 11, 2022 by Neha Mathur | This post may contain affiliate links. I earn from qualifying purchases.

    Restaurant Style Kadai Paneer (Dry & Gravy)

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    Jump to Recipe

    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 (dry & gravy) at home using my easy recipe.

    Here are some more paneer recipes that you may like – Paneer Tikka Masala, Lahsooni Methi Paneer, Paneer Masala, Restaurant Style Palak Paneer, Paneer Pasanda, and Restaurant Style Paneer Tikka Masala. 

    Kadai Paneer served in a bowl.
    Jump to:
    • About Kadai Paneer
    • Ingredients
    • How To Make Restaurant Style Kadai Paneer
    • Secret Technique For Smoky Flavor
    • Pro Tips By Neha
    • Frequently Asked Questions
    • Variations
    • Serving Suggestions
    • Storage Suggestions
    • You Might Also Like
    • Recipe Card

    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.

    Ingredients

    Kadai Masala 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 ilaichi), black peppercorns, and cinnamon sticks to make it.

    Kadai paneer ingredients 1
    Kadai paneer ingredients 2

    Paneer – Paneer is the star ingredient of this recipe. It 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. It is also available in many large grocery stores (Costco, Trader Joe’s, Whole Food, 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 Restaurant Style 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.

    Spices added to a 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.

    Roasted spices added to a grinder.
    Smooth powder made.

    Make Kadai Paneer Curry

    Heat 1 tablespoon vegetable oil in a pan over high heat.

    1 tablespoon oil heating in a pan.

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

    Remove on a plate and set aside.

    Sauteed onions and bell peppers.

    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 fry until they are lightly browned (4-5 minutes), stirring frequently.

    Onions frying in hot oil.

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

    Green chilies and ginger garlic paste added to the pan.

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

    Tomato puree and tomatoes added to the pan.

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

    Kadai masala, salt, red chili powder and garam masala powder added to the pan.

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

    Little water added to the pan.

    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.

    Paneer and sauted donions and bell peppers added to the pan.

    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.

    Ghee and lime juice added to the pan.
    Ready kadai paneer.

    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

    What is the difference between kadai paneer and paneer butter masala?

    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 which 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.

    What is the difference between shahi paneer and kadai 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

    Kadai Paneer Gravy – To make karahi paneer with gravy, add a cup of water to the final curry and bring it to a boil.

    Kadai Paneer Dry – To make the dry version, just cook the masala as mentioned in the recipe, and don’t add any water while cooking. Just add the veggies and paneer to the masala and give it a good mix.

    Vegan – To make vegan kadhai paneer, you can replace the paneer with tofu and avoid adding ghee and cream to the recipe. 

    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 will 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

    Loved this recipe?Click here to leave a review and give us a five star rating ★★★★★
    Kadai 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.

    Restaurant Style Kadai Paneer Recipe (Dry & Gravy)

    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 (dry & gravy) at home using my easy recipe.
    3.97 from 27 votes
    Print Pin Rate
    Course: Main Course
    Cuisine: Indian
    Diet: Vegetarian
    Prep Time: 10 minutes
    Cook Time: 20 minutes
    Total Time: 30 minutes
    Servings: 4 people
    Calories: 363kcal
    Author: Neha Mathur

    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
    • 2 whole black cardamoms
    • 5-6 whole black peppercorns
    • 1 inch piece of cinnamon stick

    For The Curry

    • 4 tablespoons vegetable 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 ounce paneer (250 g, cut into 1-inch cubes)
    • 1 tablespoon ghee
    • 1 tablespoon freshly squeezed lime juice
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    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 vegetable 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). We 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 fry until they are lightly browned (4-5 minutes), stirring frequently.
    • Add green chilies and ginger garlic paste and fry until onions turn golden brown in color (6-8 minutes). Stir frequently while frying.
    • Now add tomato puree and chopped tomatoes and fry for 2-3 minutes.
    • Add the ground kadai masala powder, salt, chili powder, and garam masala powder, and mix well.
    • Add half a 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.

    Video

    https://www.youtube.com/watch?v=FfuixYLrFGQ

    Notes

    Make Smoky Curry – Heat a piece of coal or a whole cinnamon stick for 5-6 minutes over direct flame until it is red hot. Keep rotating it using a tong so that it heats evenly on all the 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.
    If using frozen paneer, make sure to thaw it until it is soft.
    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.
    You can also make a big batch of kadai masala and keep using it for up to a month.
    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.

    Nutrition

    Calories: 363kcal | Carbohydrates: 13g | Protein: 10g | Fat: 30g | Saturated Fat: 12g | Cholesterol: 50mg | Sodium: 113mg | Potassium: 321mg | Fiber: 4g | Sugar: 4g | Vitamin A: 825IU | Vitamin C: 57.5mg | Calcium: 343mg | Iron: 1.4mg
    Pin this recipe for later use!I LOVE to see your creations so pin and mention @WhiskAffair!
    Sign up for regular updates?I would love to have you as part of my journey. Click to sign up!

    More Veg Curry Recipes

    • Shahi Paneer Korma is a Mughlai-style paneer dish where paneer cubes are cooked in rich onion-based gravy. This Indian curry is rich and creamy and goes well with Indian bread (vegetarian, gluten-free).
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    • This easy Bombay Potatoes (Indian Style Spicy Potatoes) recipe is made using baby potatoes, onions, tomatoes, and a few basic Indian spices. Serve it with paratha or roti for a delicious meal (vegan, can be easily made gluten-free).
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    • A dish widely prepared in Uttar Pradesh, this traditional UP Style Matar Ka Nimona is a delicious curry made using fresh green peas and a few spices. This is a soupy curry that goes well with rice or paratha. Make it with the most tender winter peas while they are in season (vegetarian, gluten-free).
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    • Kashmiri Dum Aloo is a delicious yogurt based potato curry flavored with dry ginger powder and fennel powder. Make it in traditional Kashmiri pandit style using my easy recipe (vegetarian).
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    Reader Interactions

    Comments

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      Recipe Rating




    1. foodiecorner

      March 28, 2014 at 4:52 am

      Looks perfect !! And beautiful snaps !!!

      Reply
    2. nandoos Kitchen

      March 28, 2014 at 5:30 am

      perfect yummy paneer.. Nice one dear

      Reply
    3. nandoos Kitchen

      March 28, 2014 at 5:31 am

      perfect, nice one dear.. Looks lovely!

      Reply
    4. nandoos Kitchen

      March 28, 2014 at 5:31 am

      perfect! Nice one

      Reply
    5. Maria John

      March 28, 2014 at 10:50 am

      Gorgeous clicks..mouth-watering..

      Reply
    6. Shweta Arora

      March 28, 2014 at 11:24 pm

      Rich and delicious looking paneer dish, great clicks too

      Reply
    7. Fauzia Hashmi

      March 31, 2014 at 2:16 pm

      Great recipe Neha… I m going to try it soon. I too love cooking and would like to meet you

      Reply
    8. Restaurants in indore

      May 06, 2014 at 12:35 pm

      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.

      Reply
    9. chowringhee

      May 15, 2015 at 6:14 am

      This recipe sounds rich and delicious.. Very well made Fabulous recipe. Looks so so so yummy!

      Reply
      • msnehamathur

        May 09, 2017 at 7:38 am

        Thnx

        Reply
    10. John Samuel

      June 05, 2016 at 1:49 pm

      Hai Neha, I am a big fan of variety of foods.You are a food stylist .Mouth watering Pictures.

      Reply
      • msnehamathur

        June 06, 2016 at 4:21 am

        Thnx John.

        Reply
      • msnehamathur

        May 09, 2017 at 7:38 am

        Thnx

        Reply
    11. Sreela

      December 13, 2016 at 8:57 am

      5 stars
      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.

      Reply
      • msnehamathur

        December 14, 2016 at 9:49 am

        You can buy the same coal that the press wala use. Ask them to give you a small piece.

        Reply
    12. Swasika Vikas

      March 06, 2017 at 8:04 am

      5 stars
      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..

      Reply
      • msnehamathur

        March 06, 2017 at 1:33 pm

        Thnx a lot Swasika. Do try the recipes and do not forget to leave your feedback 🙂

        Reply
    13. palak bhatti

      March 20, 2017 at 9:48 am

      wow awesome recipe

      Reply
      • msnehamathur

        March 20, 2017 at 11:30 am

        Thnx

        Reply
    14. Anindya Sundar Basu

      May 13, 2017 at 2:50 am

      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

      Reply
      • msnehamathur

        May 14, 2017 at 2:08 am

        Just trying to add some more value to the posts 🙂

        Reply
    15. dtdc plus tracking

      June 28, 2017 at 3:42 am

      5 stars
      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.

      Reply
    16. Neha

      January 17, 2018 at 5:25 pm

      4 stars
      little different & twisty, must try.

      Reply
      • Neha Mathur

        January 18, 2018 at 3:26 am

        Thnx 🙂

        Reply
    17. PRANITA DESHPANDE

      September 08, 2018 at 1:52 pm

      Your all recipes are fantastic, especially this one is fantastic.

      Reply
      • Neha Mathur

        September 11, 2018 at 12:03 pm

        Thnx 🙂

        Reply
    18. PRANITA DESHPANDE

      September 08, 2018 at 1:55 pm

      I liked the discipline of this site. Everything is very clear. Thanks for the nice recipe.

      Reply
      • Neha Mathur

        September 11, 2018 at 12:02 pm

        Thnx

        Reply
    19. Chandni

      May 10, 2020 at 12:26 am

      4 stars
      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.

      Reply
      • Neha Mathur

        May 11, 2020 at 2:07 am

        Nice

        Reply

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