Kadai paneer is one of my favorite paneer dishes. It has soft paneer cooked in spicy masala along with bell peppers and onions. It goes incredibly well with my rustic tandoori roti or soft garlic naan. This dish has a robust flavor which comes from the use of freshly ground spices like whole coriander seeds and red chilies!

The dish is called kadai paneer because it was cooked in a kadai, which is like a deep, round, thick bottom cooking pot used in Indian cooking. Back in the days, dishes were named according to the cooking vessel in which they were cooked. Since this dish was made in a kadai, it was called kadai paneer.
But if you don’t have a kadai you can simply use a wok or any other pan. I did not make it in a kadai!
The flavor is in the fresh kadai masala!
The restaurant style taste comes from the use of freshly gound “kadai masala” which uses:
- whole coriander seeds
- dried red chilies
- green cardamom
- fennel seeds and
- cloves
The spices are dry roasted until fragrant and then ground to a fine powder. The fresh masala makes this dish pop! During my recipe testing, I made this masala with various combinations like there was one with black peppercorns that made it too hot or the other with extra dried red chilies that made it super spicy. This combination and quantity work the best in my opinion, it’s perfectly balanced.
If you want, you can make a big batch of this and store it in an airtight container. That way you don’t have to do the extra step of making the fresh masala when making kadai paneer.
Other than the fresh kadai masala, what makes this kadai paneer restaurant-style is the addition of tomato paste, it adds a depth of flavor to the dish. The tiny bit of sugar helps in balancing the flavor. And I always prefer using fresh homemade paneer for this recipe, the one that you get here in the US is usually chewy and not up to the mark. Enjoy!

Dhungar Method (But it is optional)!
You can also use dhungar method to infuse smokey flavor to your kadai paneer. I have not done it here, but you may. For the dhungar method, heat a piece of coal, place it in a bowl and then place that bowl in the middle of your kadai paneer pan.
Pour ghee over hot coal. You will see fumes coming out of it, immediately cover the pan with a lid. Let it stay covered for 10 minutes until the sabzi gets infused with the smokey flavor. Do not leave it for way too long else it will become very smokey.
A lot of dhabas (streetside restaurants) in India do smoke their paneer dishes for that extra flavor.
Let’s make restaurant-style Kadai Paneer
- Prepare the fresh kadai masala
Dry roast the spices on medium heat for 3 to 4 minutes. I have used coriander seeds, fennel seeds, green cardamom, cloves and dried red chilies. Once roasted, transfer them to a spice grinder and grind to a fine powder.


- Then work on the masala base
Which is made of freshly chopped onion, ginger garlic paste, green chilies, and tomatoes. I also like adding tomato paste for extra flavor.


- Dry spices go in next!
Now is the time to add the prepared kadai masala along with garam masala and some Kashmiri red chili powder for color. I also like adding ginger juliennes for extra flavor.


- Stir in the paneer and peppers
Once the spices are cooked, add some water, cream, salt and sugar and then add the paneer and bell peppers. You want the peppers not completely cooked, so cover and cook until they are slightly softened. Finish with kasuri methi!


Storage and Reheating It
Store in an airtight container in the fridge and eat within 2-3 days. I do not like eating paneer dishes beyond that time frame. The sauce will significantly thicken in the fridge. You can add some cream or butter while reheating in a pan (or microwave) but that’s optional. I usually don’t add anything- it’s still saucy enough to be enjoyed with naan.


Kadai Paneer (Easy, Restaurant-Style)
Ingredients
Kadai Masala
- 2 tablespoons coriander seeds
- 2 dried red chilies
- 4 green cardamom
- 1 teaspoon fennel seeds
- 3 cloves
Kadai Paneer
- 1 tablespoon butter, unsalted
- 1 tablespoon oil, 15 ml , I used avocado oil
- 1 medium red onion, 150 grams , finely chopped
- 1 green chili, sliced
- 2 teaspoons ginger garlic paste
- 3-4 medium tomatoes, 450 grams , finely chopped
- 1 tablespoon tomato paste, optional
- ¼ teaspoon garam masala
- ¾ teaspoon kashmiri red chili powder
- 1 inch ginger, julienned, divided
- ½ cup water, 120 ml
- 2 tablespoons heavy cream, 30 ml
- ¾ teaspoon salt, or to taste
- 1 teaspoon sugar
- 1 large green bell pepper (capsicum), cut into 1-inch pieces
- 225 grams paneer, cubed, if using store-bought paneer soak it in warm water for 20-25 minutes before using
- 1 teaspoon kasuri methi, dried fenugreek leaves
- 1 & ½ tablespoons cilantro, chopped, to garnish
Instructions
Make the Kadai Masala
- To a small kadai or pan on medium heat, add 2 tablespoons coriander seeds, 2 dried red chilies, 4 green cardamom, 1 teaspoon fennel seeds, and 3 cloves. Roast the spices for 3 to 4 minutes stirring constantly until fragrant.
- Remove kadai from heat and transfer the roasted spices to a spice grinder. Let it cool down a bit and then grind it to a fine powder. Set aside. You can also make this kadai masala in advance and store it.
Make the Kadai Paneer
- In a large kadai or any other pan, now melt 1 tablespoon butter with 1 tablespoon oil on medium heat. Add 1 medium red onion (chopped) and sauté for 3 minutes until softened. Then add 1 green chili (sliced) and 2 teaspoons ginger garlic paste and sauté for another 1 to 2 minutes.
- Then add 3-4 medium tomatoes (chopped) and 1 tablespoon tomato paste. Mix and cook for around 6 minutes until tomatoes are really soft.
- Then add 3 to 4 teaspoons of the kadai masala that you prepared earlier (or add the whole thing if you like it spicy). Also add ¼ teaspoon garam masala, and ¾ teaspoon Kashmiri red chili powder. Add half of the ginger juliennes (prepared from 1-inch ginger). Stir the spices and cook for 30 seconds.
- Now, add ½ cup water and stir. Add 2 tablespoons heavy cream, ¾ teaspoon salt and 1 teaspoon sugar and mix. Cook for one minute.
- Add in 225 grams paneer (cubed) and 1 large green bell pepper (cut into 1-inch pieces) and mix. Cover the pan or kadai with a lid and cook for 5 to 6 minutes on medium heat until bell peppers are slightly softened. You only want them half cooked here.
- Crush 1 teaspoon kasuri methi between your palms and add to the pan. Garnish with remaining half of the ginger juliennes and 1 & ½ tablespoons cilantro (chopped). Serve kadai paneer with naan or paratha.
Video
Notes
- Use double the amount of red chilies while making the kadai masala.
- Use the entire kadai masala in the recipe. I have used 3 to 4 teaspoons of the masala and was left with some.
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.















Turned out too good!!! Loved it!!!
Perfection, as always with Manali’s recipes!!! I made the extra spice version and used tofu instead of paneer since I am vegan, and it was beyond delicious!!!!! Thank you for sharing your incredible meals!!
welcome Chelse! 🙂
Loved being able to roast and grind my own spices. Great flavours!
Very good recipe , it was an absolute hit with everyone! Many thanks !
Very nice and very very tasty
Really yummy. Thanks for another great recipe, Manali. I ate this with basmati rice and it was of course still extra delicious. The kadai masala blend is amazing.
ya yummy kadai panner this tasty
Great recipe! Easy to make and comes out great. I couldn’t get cream, so I used yoghurt instead (with a bit of corn flour) and it was great. 🙂
Hi Manali,
Does the taste change if u fry the paneer a little before you cook it in the gravy.. Do let me know?
it’s a personal preference, you can definitely fry it. I just prefer softer paneer and hence add it directly.
I made this today for my family. So so easy to make and soooo deeeelicious!!!! Thank you x
I tried this yesterday. Really good, everyone loved it.
Rediscovering cook with Manali during these times!
Love the tips that make the difference!
This recipe was simply the best! It beat all the kadai paneer I’ve tried at different restaurants! Thanks for sharing!
Hey I Made Kadhai Paneer today and everyone just loved it…… awesome recipe dear !!
glad to know!
Yumm.. I made this today and it was absolutely amazing.. My husband and daughter both enjoyed eating it… Thank you for the lovely recipe…
Great recipe! Very filling and flavorful.
good to know 🙂
Thank you so much for all your hard work on putting out these recipes! I am learning to make some of my fav Indian dishes from you! Just a quick question, how do you come up with the nutritional content/calories on these recipes?
Hi Dia, that is calculated automatically by a plugin. It just divided the total calories by number of servings in the recipe. Not 100% accurate but gives a rough estimate. Hope this helps and happy cooking! 🙂
The ingredients you mentioned here are easily available. So I luvd this recipe very much and luking forward to apply it at home. Even my brother too luvs kadai paneer very much. Thanku so much for this wonderful recipe. ☺️
The recipe is amazing…i made it….i even doubled the recipe…it tastes awesome ??
This was delicious. Thanks for including the nutrition facts per serving. Could you kindly tell us how many servings this recipe makes?
the recipe serves 4, it’s written in the recipe card.
No Doubt Your Recipes Are Awesome & Tasty Thanks For Sharing
My wife doesn’t like it.
This has to be the most aromatic dish I’ve ever had. I made the cheese it tastes like milk, i.e. no flavor.
well paneer is just curdled milk so of course it will taste only like milk. If you want you can herbs and spices while curdling the milk to flavor it.
Easy, delicious, enjoyed by the whole family. Your recipes are truly tried and tested. Keep posting new ones.
glad to know 🙂
This was a great recipe. I followed it to a Tee. Thanks for socializng. The Kadai masala is the secret sauce 🙂
So delicious. This will become a new favourite in this house. Thank you so much. Xxx
Just wow! Mouth watering recipe.just one question, I am a bachelor , can I store this Recipe For few days. Thank you very much for sharing a authentic Recipe. Good luck madam ?
This recipe turned out such a hit. Really nice.
good to know!
Hi Manali,
Looks beautiful, want to give a try but dont have cream at the moment Any alternative to heavy cream?? Yogurt??
give it a go! 🙂 coconut milk would also work!
This was a huge hit in my house. Thank you.
This is my new favourite Paneer recipe. It’s quick, easy, and so delicious! The recipe online is laid out well and it’s very easy to follow. Thank-you for sharing it.
After reading your article, water came in my mouth. ???Really this paneer will be very tasty. Now I try to make it this way.
This was the easiest recipe and excellent flavor.
This was so yummy and easy to make. Excited to try some more of your recipes. Going to attempt to make paneer next weekend!
Made this twice already and my family absolutely loves it!! Used the dhungar method for smokiness and it creates a world of difference! Amazing recipe, thank you!
welcome! 🙂
Great recipe. Made it 3 times and each time it turned out very delicious and perfect. My family loved it. Thanks for sharing such a well detailed recipe with pictures. Makes cooking new dishes even simpler.
It was sooo yummy that my picky eaters wiped clean the pan! Thanks a lot for the “perfectly perfect” kadai paneer recipe.
you are welcome! so glad you all enjoyed it 🙂
I really appreciate the way you prepare all the ingredients.
This Paneer recipe is looking very delicious.
It’s so easy to cook such a delicious recipe within less time
Thank you for sharing this.
Welcome Divya!
A wonderful paneer dish. Tried it today n it came out so delicious. Curry got over in no time. Thank you so much for a tasty n yet easy recipe!!
You are welcome ?
Manali, thank you for the recipe. I loved it. Next try will be with home made paneer. I just found you this morning and I already know I will be coming back for more recipes.
Welcome!:) Hope you enjoy other recipes as well!
I prepared today and trust me it was jst awsm and delicious; my family loved it
Thanks manali
You are welcome! glad you all enjoyed it
Awesome manali…..my kids loved it…it turned out so well and the masala taste was yum???first time made it and it was great
Good to know Pallavi!
I tried it and it came out so delicious. Thanks for Sharing such beautiful recipe. Just need some advise my gravy comes out watery even if I fry it properly all masala and put very little water. Actually when served on plate there is difference can be seen masala separated and water
Hi Rashmi, glad you liked it. Hmm not sure what’s wrong if you are cooking the masala well and adding little water. It shouldn’t come out water at all. If you want it really thick, blend some cashews and add to the curry, that should make it really thick.
I had some red peppers and the dish looks colorful. It’s come out tasty too. Thx for the recipe.
You are welcome!
Is this good both mushroom and paneer in kadai masala?
yes will work for both!
My kid liked this delicious kadai Paneer, your dishes always looks great and tempting.
What a presentation ,Simple and easy to cook. hats off Manali.
glad you guys liked it!
Oh Manali! What do I say? Never had such a delicious Kadhai Paneer before. Just cooked it for dinner and we all loved it. Loved the simplicity of the recipe. Easy and quick to make. You are amazing. ?? Keep rocking!!
Thank you Sneha, such positive comments always motivate me to do better! So thanks for taking out the time to leave a feedback, I really appreciate it! 🙂
Which cream is used??
heavy whipping cream is what I have used here, that’s what we get in US. You can use any , if you live in India use Amul cream!
Best version of Kadai Paneer I ever made! Absolutely very tasty and better than restaurants.
Awesome! Thank you Anitha, glad you enjoyed it!
I have tried this kadai paneer recipe at home. Very nice taste
Never having heard of Kadai Paneer before I find that your luminous photographs and clear instructions are enticing me to try my hand at it. Thank you. I’m grateful to have discovered your wealth of recipes.
Hi!
Great and simple recipes. I am trying this one today and litti chokha on valentine’s, that’s tomorrow 🙂 As my husband is a litti chokha fan.
Can you please add an email share option as well?? Thanks
Hope you liked both the recipes Monika! 🙂 you can email me at cookwithmanali@gmail.com
My mouth is watering. Feel like having along with hot butter Naan now..