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.















Thank you for blessing us with this recipe! We will eat it with love,,,,,and garlic naan…;)
Turned out to be so delicious. Definitely a keeper!
glad to know Priya!
Tried, tested and tasted this recipe. It is delicious. The kadai masala makes all the difference.
glad to know!
You have told very good how to make vegetable,
Hi! Tried the recipe yesterday. It was very good. Both my husband and my son enjoyed it. Thank you for the recipe.
I soaked my store bought paneer for n hot water for about 15-20 minutes or so. The paneer was still sort of hard.how do I avoid it next time?
Any suggestions, please?
change the brand of paneer please, there’s no other way to make if soft it is still hard after soaking in hot water
if the paneer is hard ,cook it in the water for 15 t0 20 mins ,it will become soft ,i read this tip some where and i am following it , its working for me
also can try soaking in warm water not hot water
the paneer do i cut them into cubes then soak in warm water or soak the big chunk of paneer in warm wter then cut into cubes
either way is fine, I usually soak the block
Can this dish keep in the fridge for a couple days?
yes
Hi Manali,
Whenever my family goes to dine in a restaurant we don’t forget to order Kadai Panner which is our favourite dish. The recipe given looks delicious will try the recipe
Tq
I like authentic taste of Kadhai paneer and used to make at home. Today I have to prepare for 20 people so I was searching for recipe for measurements… I was surprised to see many recipes with fancy ingredients. Manali I really liked your recipe … thanks and keep providing authentic recipes untouched from fancy / new add Ons.
Thanks Shikha
Thanks for the many recipes you have given.
Hi Manali! Loved your mattar paneer and excited to try this next. I don’t have a spice grinder and my processor won’t finely grind small quantity’s off whole spice. Any suggestions? Could I blend the whole roasted spices with the cooked tomatoes like in your mattar paneer recipe?
I don’t have cream, could I replace the cream for cashews or full fat milk?
Thank you!
no that would change the taste, I would not recommend. Do you have a mortar and pestle, crush the spices using that. it’s okay if it’s not too find. I would replacing the heavy cream with cashew cream and not milk.
I made paneer hundred times.. but it never was as good as today.. thanks a lot Manali..
welcome! 🙂
I never made this before i am going to make it tonight I love it
Hi, I tried this recipe and it came out very well. Thanks for sharing. How to measure the nutrition in such a recipe?
the nutrition that is given in the recipe card is calculated automatically by a plugin, it’s an estimate only
Hands down my favorite sauce recipe!! I made it with coconut cream instead of regular cream and I used chickpeas and green peas in place of the green peppers. I love love love the spice mix! Fennel is my favorite spice so I love the fragrance this meal gives off. I tripled the recipe and froze it for easy meals in the future. Thanks so much for all your awesome recipes!
awesome, so glad you liked it! 🙂
Delicious and very simple to make! Mine turned out to be a little too spicy for my liking, I will omit the chilli powder next time. Thank you, Manali
welcome!
Very nice recipe tried it last night. Loved the fact that the masala is home madeand unique. Thanks manali
Simply Delicious! I am glad I found this recipe, my husband loves it ?
Mexican-American wife here cooking for Punjabi husband.
Thank you.
Simply Delicious! I am glad I found this recipe, my husband loves it ?
Mexican wife here cooking for Punjabi husband.
Thank you.
This was indeed a simple yet delicious recipe, thanks a lot Manali, I absolutely enjoyed it and will be making it for friends.
I tried making this and the flavour is lovely but it’s not really the consistency as the curry you get from restaurant. Any thoughts ?
yeah this recipe does not have a gravy as such, it’s semi-dry, that’s how I like my kadai paneer and that’s how I ate it also growing up. You might want to check “paneer butter masala” or “matar paneer” recipe on the blog if you want that consistency.
this has become our family favorite! thank you Manali!!
Can we skip the heavy cream?
you may
Very delicious!
Hello Mam,
I have tried this recipe and everyone in my family liked it a lot.
Thank you so much mam for this amazing recipe.
What is that cream that they added to recipe
heavy cream
Tried this recipe today and It was really delicious ?. Thank you for sharing
welcome, good to know!
Amazing recipe, loved it. The smell of the fresh spices makes it even better
Can we use canned diced tomatoes instead of fresh tomatoes . I love all your recipes.
should work!
Thank u
hey manali,
i want to try this recipe but we dont eat onion and garlic and hing too. is there a way to make it without onion and garlic…
just skip those and maybe add bit more tomatoes
Loved this recipe!!!!
5star rating
Thank you so much
Loved this recipe!
Hi ,
My 11 year old daughter prepared this today by herself without my help , it was sooo yummmy n easy to prepare as she told n prepared in half an hour. Thank u soo much for such a wonderful recipe.
Yum! Was pretty good.
Hey Manali! This recipe is includes in one of my favourite recipes. Before yet I cooks kadai paneer at my home but I feels there something is lacking. After reading this I got a amazing teste which I expect. Thanks for sharing.
Most amazing recipe. I tried the smoked one and tasted perfect! Restaurant style. Thanks for sharing.
awesome!
Hello sister,
Personally I tried this recipe at home. It tastes great. Plz
Make a soup recipe with vegetables available in East India.
glad you liked it, will try!
Hello Ma’am..Thanks for this superb recipe. I have tried this recipe today and it came out truly yummy. Best Kadai Paneer recipe I have ever tried..Tonnes of thanks Ma’am.
you are welcome, glad you liked it 🙂
Tried the recipe of paneer kadai. Came out well specially the masala which gave the fresh smell of dhaniya. Since we buy organic raw masala the smell and taste was awesome. Today I had to give my wife and mother in law kitchen free day, everyone enjoyed the lunch. It was better than restaurant’s paneer kadai.
Thanks for sharing the recipe
welcome!
Can we use milk instead of the cream as a substitute?
You may, it just won’t be rich enough
Thanks for sharing wonderful recipe !
Tried this recipe and was a big hit in my family. Made it atleast 3 times! Thanks.
Can I use the same recipe for mixed veggies or can advise how to do.
yes you can, just use other veggies and follow rest of the steps as it is
Hello Manali,
I tried this recipe today. It was liked by my husband so much thatt he was falling short for words…… Thank you so much for such nice, easy n tasty recipe. I did little alteration instead of cream I used milk just a little bit as we are not big fans of cream…. but still it was so tasty. I thank you n love from Canada ??.
This is definitelly going to be part of every lunch/ dinner/ pot luck in office…Thank you ??????
Would love to speak to you about my experience!!!!
Regards!!!
Manny
glad to hear that Manny 🙂
Hi!! Do you have recipe for dry soyabean nuggets recipe?
Thanks!!
I don’t, but maybe I will put it soon 🙂
Hello Manali Ji,
Please upload dosa batter n process involved in video mode. Thanks n Regards!!
don’t have a video, here’s the recipe https://www.cookwithmanali.com/crispy-masala-dosa/
Made it today. Turned out very nice
I made this recipe today.Thank you so much Manali for the best recipe I tried so many other recipes for kadai panner but your comes the best.Thank you once again
welcome!
I made this recipe and absolutely loved it! Thank you for putting this online.
glad to know!
Perfect recipe in a long time. Thanks Manali.
welcome!
Very nice recipe! We added some more sugar and salt to eat it with rice 🙂 Thank you so much!
Came out very well, we all loved it …
Very nice recepie
Amazing recipe! I twitched it too by adding aniseed powder just a teaspoon gave a whole new taste! Amazing recipe thanks for sharing!
welcome! 🙂
I tried it today. It turned out amazing. Just like in restaurants.
Made it today. Made minor changes like added bay leaf and jeera. It was delicious with fresh rotis
glad to know!