Kadai Paneer is a hearty paneer dish made with cubes of paneer cooked with crunchy bell peppers, onions, in a richly spiced tomato and onion sauce. Can be served as an entree and pairs well with Naan or Basmati rice.

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About this recipe
Kadai Paneer or Karahi Paneer is typically made in a traditional wok known as ‘kadai’ or ‘karahi’, which gives it its name. This is a very popular North Indian restaurant-style recipe which pairs very well with naan or roti or even basmati rice. The flavors of this recipe stand out from other paneer recipes – The spices that are used to flavor kadai paneer are first lights roasted whole and then coarsely ground.
The use of fresh, whole spices makes this recipe unique, and gives a whole different dimension to the taste. This restaurant-style paneer recipe is made with no added water which makes it thick, and less saucy. Unlike so many other paneer recipes, there is no cream used to make the sauce, and the texture of the paneer is in contrast to the crunch of the tender-crisp bell pepper and onion.

Ingredients and Ingredient Notes
Here is all you will need to make karai paneer:
(head to the bottom of this page for detailed ingredient measurements)

Kadai Masala: The spices used to make fresh kadai masala are – bay leaves, coriander seeds, cumin, cardamom, cinnamon and fennel. These spices are roasted gently to release their aromas. Then they are coarsely ground and then added to the kadai paneer as it is being cooked. You can make this kadai masala ahead of time and store it in an air-tight container for up to 2 months.
Paneer: Paneer can be found at most major supermarkets, or look for them in your local Indian grocery store. Fresh paneer can be made at home, but supermarket paneer works very well for thsi recipe.
Bell Peppers: Use a mixture of red and green bell peppers. Ensure that you do not overcook the bell peppers and onions because you want to retain their crunchy texture for kadai paneer.
Tomatoes: I prefer to use canned tomatoes for this recipe. You can also use diced fresh roma tomatoes, instead of canned tomatoes.
Kasuri Methi (dried fenugreek leaves): This is a slightly bitter, earthy herb that is added to many Indian recipes. Its cuts through the richness of curries and gravies and is used in cream-heavy recipes like Butter Chicken and to add flavor to the paneer-based filling for Paneer Kathi rolls.
Step-by-step recipe
Start by preparing the kadai masala. To make the masala, heat all the whole spices for the kadai masala on a hot pan. Use a spatula to move them around so that they do not burn. Once the spices are aromatic, turn off the heat. Transfer the spices to the jar of a blender and grind until coarsely ground. Store them for later or keep aside to use now.

In the same saucepan, heat some ghee. Add the chopped bell peppers and onions and lightly sauté them until the veggies are tender crisp. Do not over cook them. Keep the bell peppers and onions aside.

Heat a wok (karahi) and add ghee. Add the chopped onions, and saute until translucent. Add the ginger-garlic paste and the tinned tomatoes (or use diced, fresh tomatoes). Saute for 3-4 minutes until onions are cooked, and the water from the tomatoes has escaped.
At this point, you will see the oil separating from the onion-tomato mixture.

Add the turmeric, kasuri methi, and 1 heaped tablespoon of the kadai masala that you prepared earlier. Add tomato paste. Mix well, saute for 2-3 minutes.
Then add the pre-sauteed veggies and the paneer to the kadai. Add two tablespoons of Greek yogurt (or sour cream), season with salt and mix everything together.

On a high heat, toss the ingredients together until the paneer is cooked. This should take around 3 minutes. Use a spatula to move everything in the wok quickly, so that nothing sticks to the karahi.

Paneer kadai or paneer karahi is now ready to be served with Naan or basmati rice.
You can also serve it as part of an Indian menu, alongside Vegetable Pulao and Raita.

Frequently Asked Questions
Kadai paneer is often thought to be similar to paneer tikka masala, which is another popular paneer-based Indian recipe. However, paneer tikka masala is made by cooking paneer in a creamy sauce made with cashews, cream and tomatoes. Kadai paneer is made in a wok, with no added cream, and has little-to-no gravy. While making Kadai paneer, crispy bell pepper and onion are cooked on high heat with paneer - almost stir-fried, retaining their crunch and texture.
The amount of spice in Karahi paneer can be controlled as per your spice tolerance. I have used Kashmiri chilis in this recipe, which are very low on spice (heat), yet impart a nice reddish color. Karahi or Kadai paneer is usually not too spicy.
Similar Recipes

Kadai Paneer (Karahi Paneer) Recipe
Equipment
- Wok
- Sauce Pan
Ingredients
- 2 teaspoon Ghee
- 250 grams Paneer cut into cubes
- ½ Green bell pepper cut into 1-inch pieces
- ½ Red bell pepper cut into 1-inch pieces
- 1 large Red Onion cut into 1-inch pieces
- 1 medium Red Onion fined chopped
- 1 teaspoon Tomato paste
- ½ cup Tinned Tomato or use fresh Roma tomatoes, diced
- 1 tablespoon Ginger garlic paste or use freshly minced ginger and garlic
- 1 teaspoon Kasuri Methi
- ½ teaspoon Turmeric powder (haldi)
- 2 tablespoons Greek yogurt or use regular yogurt or sour cream
- 1 teaspoon Salt to season
Kadai Masala
- 1 tablespoon Coriander seeds
- 1 tablespoon Cumin seeds
- 1 teaspoon Fennel seeds
- 1 inch Cinnamon stick
- 5 Cardamom pods
- 2 Kashmiri chilies dried red chilies
- 2 Bay leaves dried bay leaves
Instructions
Kadai Masala
- To make the masala, heat all the whole spices for the kadai masala on a hot pan. Use a spatula to move them around so that they do not burn.
- Once the spices are aromatic, turn off the heat. Transfer the spices to the jar of a blender and grind until coarsely ground. If you are storing the masala to be used later, transfer to an air-tight bottle and store for later.
Kadai Paneer Instructions
- In a wok, heat 1 teaspoon ghee.
- Add the chopped bell peppers and onions and lightly sauté them until the veggies are tender crisp. Do not over cook them. Keep the bell peppers and onions aside.
- Add 1 teaspoon ghee to the wok. Add the chopped onions, and saute until onions start to turn translucent.
- Add the ginger-garlic paste and the tinned tomatoes (or use diced, fresh tomatoes). Saute for 3-4 minutes until onions are cooked, and the water from the tomatoes has evaporated.
- The oil will start to separate from the onion-tomato mixture.
- Add the turmeric, kasuri methi, and 1 heaped tablespoon of the kadai masala that you prepared earlier.
- Add tomato paste. Mix well, saute for 2-3 minutes.
- Then add the pre-sauteed veggies and the paneer to the kadai.
- Add two tablespoons of Greek yogurt (or sour cream), season with salt and mix everything together.
- On a high heat, toss the ingredients together until the paneer is cooked. This should take around 3-4 minutes. Use a spatula to regularly move the ingredients in the karahi, so that nothing sticks to the bottom.
- Paneer kadai is now ready to be served with Naan or basmati rice.