Kadai Paneer Gravy Recipe (Restaurant style) (2024)

Published: May 24, 2023 · Last Modified: Feb 29, 2024 by Kanan Patel / 84 Comments

Restaurant style kadai paneer recipe - a super popular Indian paneer gravy dish made with soft paneer cubes, perfectly cooked bell pepper and a deliciously flavorful, spicy tomato-based gravy. Serve it with a homemade naan or lachha paratha to make it a meal.

❤️ About This Kadai Paneer Recipe

Meaning of the dish name: Kadai is the Hindi word for ‘Indian wok’ which is commonly used in everyday Indian cooking. So basically, a paneer dish made in kadai is known as kadai paneer.

It’s
- Easy to make at home
- Just like the restaurant one
- Super delicious and flavorful
- Perfect for everyday lunch dinner (b’coz it’s not creamy, rich)

Two types of kadai paneer:

1. Gravy version: I am sharing this version today. You will find this version in most of the North Indian restaurants here. It doesn’t have a smooth, velvety gravy-like other paneer gravy dishes shahi paneer, paneer butter masala.
2. Dry version (Sabzi-kind): To make this, follow the same instructions. Just skip adding water or use just a few tablespoons of water to moisten the tomato masala. In this one, the semi-dry tomato masala is coated with paneer and bell pepper.

🧾 Ingredient Notes

To make kadai paneer, a special, unique spice blend called kadai masala is used. This masala is aromatic, flavorful, spicy masala powder that lends a unique flavor to this kadai paneer gravy. It is made with 6 different spices.

You have few options for this masala:

1. Make a fresh batch every time you make this dish. I have given the amount details below in the recipe card.
2. Make a large batch and store it in the spice jars. Use as needed within 3-4 months. I have shared the detailed post about kadai masala. This saves a lot of time if you are making kadai dishes (kadai vegetable, kadai mushroom, kadai soya chaap, kadai bhindi) frequently.
3. Buy the store-bought packet of kadai paneer masala. This is my least favorite option.

• Paneer: Here in the USA, I always find paneer packets in the refrigerator or freezer section at any Indian grocery store. It’s hard to find the fresh paneer as we get in India. But if you have some time on hand, you can make paneer at home, it’s easy to make.

• Bell peppers (Capsicum): It adds texture and a nice crunch to the dish. I cooked capsicum until 80% done. Because I like crisp-tender bell pepper. If you prefer a softer texture then you can cook them all the way through.

• Tomatoes: Used in two different ways: finely chopped & pureed. Chopped one gives the texture and makes the gravy chunky. While the pureed one adds some thickness and depth of flavor to the gravy.
  • It is best to use ripe, fresh tomatoes, as we are using a good amount of them. If not used ripe then it may give the sour gravy.
  • TIP: What type of tomatoes to use? When it comes to the Indian gravy dishes, I highly recommend using Roma tomatoes. Stay away from the beefsteaks or wine-ripe tomatoes which make sour gravy.

• Garlic paste: If the paste is not handy then just grate 2 cloves of garlic using a small grater or Microplane zester.

• Ginger, julienned: Instead of using paste in the beginning, we are adding julienned ginger at the later stage after tomatoes are cooked. It lends a very unique flavor to the gravy.

👩‍🍳 How To Make Kadai Paneer Gravy? (Pics)

Making Kadai Masala:

1) Dry roast the spices with stirring constantly until aromatic. Remove it to a plate and let it cool down completely.

2) Then coarsely grind into the spice grinder.

Making Kadai Paneer Gravy:

1) Heat the oil in a kadai (or pan) on medium heat. Once hot add chopped onion.

2) Cook until onions are soft and light pink or translucent in color.

3) Add garlic paste.

4) Mix and saute for a minute or until the raw smell of garlic goes away.

5) Now add chopped tomatoes and pureed tomato along with salt.

6) Mix and let it cook until it thickens and oil starts to ooze out from the sides. This step takes some time, be patient.

7) Add kadai masala.

8) Mix and cook for about a minute.

9) Add bell pepper, ginger julienned and water.

10) Mix well and let it simmer for 5 minutes or until the peppers are crisp-tender (80% cooked).

11) Add kasoori methi and kashmiri red chili powder. Mix well.

12) Add paneer cubes.

13) Mix and simmer the gravy for a minute or two until the paneer gets hot and soft.

14) Add heavy cream, mix and turn off the stove as soon as gravy starts simmering.

💭 Expert Tips For Making Kadai Paneer

• Remove and discard the seeds and stems of dried chilies while making kadai masala. It reduces the spice level plus, they increase the body heat, not good for your gut health.
• To reduce the spice level of masala even more, use the kashmiri dried chilies instead of regular ones.
• Kashmiri red chili powder is used just for color, it doesn’t add heat or spicy taste to the dish. Please do not replace it with regular chili powder. Masala is spicy enough, you don’t need more chili powder.
• Always use fresh, ripe tomatoes. Unripe or less ripe tomatoes make the gravy tangy and sour.
• I do not recommend canned tomato product here otherwise it’ll be too sour.
• If gravy becomes sour by any chance, add a little amount of sugar to balance the flavor.

🍽 Serving Ideas For Kadai Paneer Gravy

• Serve kadai paneer with homemade naan or garlic naan or lachha paratha. To make it a complete meal serve sliced onions and lemon wedges with salted lassi on the side.
• The dry version is perfect to pack into the lunch box along with some roti or tawa paratha.

PS Tried this kadai paneer recipe? Please leave a star rating in the recipe card below and/or a review in the comment section. I always appreciate your feedback! Plus, Subscribe to my newsletter and follow along on Pinterest, Instagram, and Facebook for all the latest updates.

📋 Recipe Card