Kadai Paneer Recipe: Restaurant-Style in 30 Minutes

Chef Kunal Saxena

Executive Chef, S Kitchen

With over 15 years of culinary experience specializing in authentic North Indian and Punjabi cuisine, Chef Kunal has mastered the art of creating restaurant-quality dishes that home cooks can recreate. His approach combines traditional techniques with modern conveniences, making complex recipes accessible to everyone.

What is Kadai Paneer?

Kadai paneer is a semi-dry to medium-gravy North Indian curry featuring paneer (Indian cottage cheese) and bell peppers cooked in a tomato-onion base. What distinguishes it from other paneer dishes like paneer butter masala or shahi paneer is the use of kadai masala—a coarsely ground spice mix dominated by coriander seeds and Kashmiri red chilies.

This dish has its roots in Punjabi cuisine and is a staple in Indian restaurants worldwide. Traditionally prepared in a kadai (wok), the high heat and specific cooking vessel contribute to the slightly charred, smoky flavor that makes this dish so memorable.

Ingredients You’ll Need

For the Kadai Masala (Spice Blend)

• 2 teaspoons coriander seeds (dhania)
• 2 Kashmiri red chilies (for color and mild heat)
• 2 green cardamom pods

Main Ingredients

• 250 grams paneer (cottage cheese), cubed into 1-inch pieces
• 2 medium green bell peppers (capsicum), cut into strips
• 2 medium ripe tomatoes, finely chopped
• 1 medium onion, finely chopped
• 1 tablespoon ginger-garlic paste
• 1/4 cup tomato puree (optional, for richer gravy)
• 2 tablespoons ghee or oil
• 2 tablespoons fresh cream (optional)
• 1/2 teaspoon dried fenugreek leaves (kasuri methi)
• 1/2 teaspoon red chili powder
• Salt to taste
• Fresh coriander leaves for garnish

Step-by-Step Instructions

Step 1: Prepare the Kadai Masala

Heat a small pan over low flame. Add coriander seeds, Kashmiri red chilies, and green cardamom. Dry roast for about 1 minute, stirring continuously until you smell a pleasant, nutty aroma. The spices should become fragrant but not burn. Remove from heat immediately and let cool for 2-3 minutes.

Transfer the roasted spices to a spice grinder or mortar and pestle. Grind to a semi-coarse or fine powder, depending on your texture preference. Set aside. This fresh kadai masala is what gives the dish its signature flavor.

Step 2: Prepare the Paneer

If using frozen paneer, defrost it completely. Cut the paneer into 1-inch cubes. For softer paneer, place the cubes in hot water for 7-8 minutes, then drain and set aside. This step prevents the paneer from breaking during cooking and keeps it moist.

Step 3: Build the Flavor Base

Heat 2 tablespoons of ghee or oil in a kadai or heavy-bottomed pan over medium heat. Add the chopped onions and sauté for 3-4 minutes until they turn translucent and soft. The onions should not brown; we want them tender and sweet.

Add the ginger-garlic paste and red chili powder. Sauté for 1-2 minutes, stirring constantly to prevent burning. The raw smell of ginger and garlic should disappear, and the mixture should become aromatic.

Step 4: Cook the Tomatoes

Add the chopped tomatoes to the pan and mix well. Cook for 4-5 minutes until the tomatoes become soft and pulpy, and you see oil separating from the mixture. This is crucial for developing the right flavor and texture.

Now add the freshly ground kadai masala (from Step 1) and cook for 2 minutes, stirring continuously. This blooms the spices and releases their essential oils. If using tomato puree, add it now and mix well.

Step 5: Add Bell Peppers

Add the sliced bell peppers (capsicum) and salt to taste. Cook for 3 minutes, stirring occasionally. The bell peppers should soften slightly but still retain some crunch for the best texture and visual appeal.

Step 6: Incorporate Aromatics

Take the dried fenugreek leaves (kasuri methi) and crush them between your palms directly over the pan. This releases their aromatic oils and adds a wonderful fragrance to the dish.

Add 1/3 cup of water to create the gravy consistency. Stir well and cook for 3 minutes to allow all the flavors to meld together.

Step 7: Final Assembly

Gently add the paneer cubes to the curry. Mix carefully to avoid breaking the paneer. Cook for 3 minutes, allowing the paneer to absorb the flavors of the curry.

If using fresh cream, add it now and mix gently. Cook for just 1 minute—overcooking after adding cream can cause it to curdle. Turn off the heat.

Garnish with freshly chopped coriander leaves and a few julienned strips of ginger for a restaurant-style presentation.

Serving Suggestions

Kadai paneer is incredibly versatile and pairs beautifully with various Indian breads and rice dishes:

• With Breads: Serve with butter naan, tandoori roti, lachha paratha, or kulcha
• With Rice: Pairs excellently with jeera rice, pulao, or plain basmati rice
• Complete Meal: Accompany with raita (yogurt salad), kachumber (onion-cucumber-tomato salad), and a glass of lassi for an authentic Punjabi feast
• Party Presentation: Serve in a traditional kadai or cast-iron vessel for visual appeal

Storage and Make-Ahead Tips

Refrigeration

Store kadai paneer in an airtight container in the refrigerator for up to 3-4 days. The flavors actually develop and deepen overnight, making leftovers even more delicious.

Freezing

Kadai paneer can be frozen for up to 2 months. Freeze in portion-sized containers for convenience. Note that the texture of paneer may change slightly upon thawing—it can become slightly crumbly but still tastes great.

Reheating

Reheat gently on the stovetop over low heat, adding a splash of water or cream if the gravy has thickened. Microwave reheating works too—heat in 30-second intervals, stirring between each interval. Avoid overheating as it can make the paneer rubbery.

Make-Ahead Strategy

You can prepare the kadai masala up to 2 weeks in advance and store it in an airtight container. The base curry (up to Step 6) can be made a day ahead. Add paneer and cream just before serving for the freshest taste.

Nutritional Information

Per serving (serves 4):

• Calories: 285 kcal
• Protein: 14g
• Carbohydrates: 12g
• Fat: 21g
• Fiber: 3g
• Calcium: 320mg
• Iron: 2.1mg

Note: Nutritional values are approximate and will vary based on specific ingredients used and portion sizes.

Frequently Asked Questions

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

Kadai paneer features a rustic, spicier flavor profile with visible bell peppers and onions, enhanced by coarsely ground kadai masala. Paneer butter masala is creamier, milder, and has a smooth tomato-based gravy enriched with butter and cream. Kadai paneer has a drier, thicker consistency while butter masala is more gravy-based.

Can I make kadai paneer without cream?

Absolutely! Cream is optional in kadai paneer. The traditional version is actually made without cream. If you skip it, you’ll have a lighter, more health-conscious dish that still tastes authentic. The tomato puree also optional—you can omit both for a completely dairy-free version (apart from the paneer itself).

What is kadai masala and can I use regular garam masala instead?

Kadai masala is a specific spice blend dominated by coriander seeds and Kashmiri red chilies, often with cardamom or fennel. While you can substitute with garam masala in a pinch, the flavor will be quite different—less rustic and missing the signature kadai taste. For authentic results, take the 5 minutes to make fresh kadai masala.

Can I use tofu instead of paneer?

Yes! Firm or extra-firm tofu works well as a paneer substitute. Press the tofu to remove excess water, then cube it. You can even pan-fry the tofu cubes until golden for added texture. This makes the dish completely plant-based (just omit the cream or use coconut cream).

Why is my kadai paneer not as flavorful as restaurant versions?

The key to restaurant-style flavor is: (1) Freshly ground kadai masala—pre-ground spices won’t deliver the same punch, (2) Cooking the tomatoes until oil separates, (3) Using kasuri methi (dried fenugreek), and (4) High heat when sautéing bell peppers for that slight char. Don’t skip the kasuri methi—it adds an irreplaceable aroma!

How can I make kadai paneer less spicy?

Reduce the number of Kashmiri red chilies in the kadai masala to 1 or omit the red chili powder. You can also add more cream or a tablespoon of cashew paste to mellow the heat. Kashmiri chilies provide more color than heat, so the dish won’t be extremely spicy to begin with.

Variations and Customizations

Kadai Paneer Dry (Semi-Dry Version)

For a drier version perfect for wraps or as an appetizer, skip the tomato puree and reduce the water to just 2-3 tablespoons. Cook until most liquid evaporates, leaving the vegetables and paneer coated in thick masala.

Restaurant-Style Rich Version

Add 2 tablespoons of cashew paste along with the tomatoes for extra richness. Increase cream to 4 tablespoons and finish with a tablespoon of butter on top for that authentic dhaba-style richness.

Healthier Version

Use low-fat paneer, skip the cream, and use just 1 tablespoon of oil instead of ghee. Add more vegetables like mushrooms or baby corn for extra nutrition without extra calories.

Common Mistakes to Avoid

1. Over-roasting the spices: This makes them bitter. Roast just until fragrant, about 60 seconds.
2. Not cooking tomatoes enough: Undercooked tomatoes make the curry taste raw. Cook until oil separates.
3. Overcooking bell peppers: They should retain some crunch for the best texture.
4. Adding paneer too early: This can make it hard and rubbery. Add paneer in the last 5 minutes.
5. Boiling after adding cream: This causes curdling. Just warm through and turn off heat.

The Cultural Significance of Kadai Paneer

Kadai paneer has become a symbol of Punjabi hospitality and celebration. While its exact origins are debated, it gained popularity in the 1970s and 80s in North Indian restaurants and dhabas (roadside eateries). The dish represents the Punjabi love for bold, robust flavors and generous portions.

Today, it’s a menu staple at Indian weddings, festivals, and special gatherings. The use of ghee, fresh paneer, and aromatic spices reflects the agricultural abundance of Punjab and the region’s rich culinary heritage. Making kadai paneer at home connects you to this tradition of sharing flavorful, heartwarming food with loved ones.

Have you tried this kadai paneer recipe? Share your experience and any variations you loved in the comments below!