Kadhai Paneer Masala

A healthy paneer and capsicum masala dish that works well for a lunch or dinner party.

Kadhai Paneer Masala
Kadhai Paneer Masala

Preparation Time: 15 mins

Cooking Time: 30 mins

Serves: 4

Ideal for: Dinner/Lunch parties

Level of Cooking: Easy

Taste: Spicy



Vegetable oil (2 tablespoon)

Paneer (200 gms), cubed

1 tablespoon Clarified Butter

1/2 cup Milk (I used toned milk)



2 Onions medium sized, finely chopped

2 Tomatoes medium sized, pureed

2 Capsicums (bell peppers) medium sized, diced into 1/2 inch pieces. (You can use red, yellow and green bell peppers)

2 Green Chillis sliced into 2

3 tablespoon Garlic & Ginger Paste

Fresh Coriander for garnishing


Spices (as per taste):

Cumin seeds


Red Chilli Powder

Turmeric Powder

Garam Masala Powder

Coriander Powder

Amchoor Powder

2 Whole Dried Red Chillis (or more if you want more spicy)

1 Badi Elaichi



  1. Heat oil in a pan.
  2. Put cumin seeds, badi elaichi and whole dried red chilli into the oil.
  3. Once cumin seeds start to crackle, add chopped onions, green chillis and ginger & garlic paste.
  4. Saute onions till they are golden brown and the raw smell of onions, ginger and garlic disappears.
  5.  Add pureed tomatoes into the pan and add salt.
  6. Stir well and cook for 2-3 minutes.
  7. Add turmeric powder, red chilli powder, coriander powder, garam masala powder and amchoor powder.
  8. Mix well and add the butter and the milk.
  9. Cook for 2-3 minutes.
  10. Now add cubed paneer. Mix well and cook on low flame for about 10-15 minutes or till the puree is reduced to almost half.
  11. Garnish with fresh coriander and serve hot.

Note:  The key here is to reduce the onion and tomato masala to a thick consistency.


This spicy dish goes well with hot and fresh chapati or poori and raita.