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Kadai Paneer is a popular Punjabi dish made with paneer, bell peppers, and onions cooked in a flavorful onion-tomato masala. Traditionally made in a heavy-bottomed kadai, this easy one-pot recipe pairs beautifully with roti, naan, or rice.
One reader commented:
★★★★★
“I made the kadhai paneer today & it was a huge hit! I absolutely loved the softness the paneer gained by soaking in water. Thank you for this amazing recipe, Nisha! ❤️”
– Sukriti Kapur
Being Punjabi, you’d think I grew up eating paneer all the time – but not quite. At home, my mom often made Punjabi Chole, Rajma Masala, Punjabi Kadhi, and plenty of dals and sabzis. She tried to incorporate a variety of lentils and beans into our diet.
Paneer, on the other hand, was reserved for special occasions – Diwali, birthdays, or those times when we begged her enough. 😂 While paneer is super nutritious, it’s also cheese, which is high in fat, so my mom kept it more of a treat than a staple. Now that I do the cooking at home, paneer shows up in my kitchen much more often than it ever did in hers. 🙂
What is Kadai Paneer
Kadai Paneer is a classic Punjabi dish made with paneer (Indian cottage cheese), onions, and bell peppers, all tossed in a flavorful onion-tomato masala. Traditionally, it’s cooked in a heavy-bottomed kadai (wok), but for this recipe, I’m using a heavy-bottomed stainless steel pot instead.
This dish is typically a dry-style subzi. First, the aromatic kadai masala is prepared, then the onion-tomato base is cooked down, and finally, the veggies and paneer are added and gently sautéed to perfection.
More Paneer Recipes
If you love paneer, try these popular paneer recipes: Paneer Makhani (no butter, no cream), Matar Paneer, Paneer Tikka Rice Bowl, and Palak Paneer Instant Pot.
Kadai Masala
For Kadai Paneer, the key is the kadai masala – a special blend of whole spices including dry red chilies, fennel seeds, cumin seeds, coriander seeds, green cardamom, and peppercorns.
The spices are first dry-roasted until fragrant, then blended into a powder using a spice or coffee grinder. This freshly made masala elevates the flavor of Kadai Paneer to the next level, truly setting the dish apart.
I usually have leftover kadai masala, which I add to other sabzis, or even make a simple Jeera Aloo with this masala, which is delicious. Of course, you can always use store-bought masala, however, it tastes so much better when it’s fresh.
Ingredients & Substitutions
- Kadai Masala – For the best kadai paneer, it is recommended to make kadai masala at home, which is super simple. Dry-roast a few spices and grind them into a powder. Alternatively, you may use store-bought kadai paneer masala.
- Paneer – I always use store-bought. Cut the paneer into small cubes so you end up with 30 pieces. Soak it in hot water for 20 minutes, which results in soft paneer. Drain and add it to the masala mixture towards the end.
- Bell Peppers – I used a combination of red and green bell peppers, but you may also use just red or green peppers. Cut the bell peppers into 3/4-inch cubes.
- Onions – You will need onions twice in this recipe. First, cube the onions into 3/4-inch pieces, and then chop them for the masala sauce. See recipe card below.
- Vegan option – Kadai Tofu – Use tofu instead of paneer. To make Kadai Tofu, first press the tofu, then saute it lightly before adding it to the masala mixture.
*See the recipe card below for full information on ingredients and quantities.*
How to Make Kadai Paneer
Make Paneer Kadai Masala
Step 1. Dry roast dry red chilies, green cardamom, peppercorns, coriander seeds, cumin seeds, and fennel seeds for 5 minutes. Cool for a couple of minutes
Step 2. Blend the whole spices in a coffee grinder. Set aside.
Cook Kadai Paneer
Step 3. Heat a heavy-bottomed pot on medium heat. Once hot, add oil, then cumin seeds. Sauté for a minute.
Step 4. Add the red onions and season with a little salt. Sauté until the onions are golden-brown for about 8 minutes.
Step 5. Now, add grated ginger and garlic, as well as chopped green chilies. Sauté for a minute.
Step 6. Add the tomato puree, which was prepared earlier, and ground spices – 1 1/2 tablespoons kadai masala, Kashmiri chili powder, and turmeric powder.
Step 7. Stir well.
Step 8. Cover and cook on low to medium heat for 5 minutes.
Step 9. At this time, the tomatoes should have a paste-like consistency. If there is any sticking, deglaze the pot with a couple of tablespoons of water. Cook down until the water has evaporated.
Step 10. Add red and green bell peppers. Season with a little salt.
Step 11. Mix well, add a quarter cup of water, and cook for 3 to 4 minutes.
Step 12. Add the soaked and drained paneer to the pot. Cook for 2 to 3 minutes.
Step 13. Garnish with garam masala, kasoori methi, and fresh chopped cilantro.
Step 14. Stir and turn off the stove. Your Kadai Paneer is ready.
Nisha’s Recipe Tips
- Kadai Masala: Prep kadai masala first and set aside. Do not skip this step, as it makes a huge difference in flavor.
- Soak Paneer: Soak your store-bought paneer in hot water for 20 minutes.
- How to Cut Paneer: Cut the paneer into small cubes – about 30 in total – ideally arranged in a 6 × 5 grid.
- How to cut Bell Peppers & Onions: For best results, cut the bell peppers and onions into roughly 3/4-inch cubes. This ensures they cook evenly and blend perfectly with the masala.
- Tomato Onion Masala Mixture: Ensure the onions are cooked down until golden brown – this is where the flavor lies. Also, cook down the tomatoes until you have a paste-like consistency.
- Is food sticking?: If onions or tomatoes are sticking at any time, add 2 tablespoons of water to deglaze the pan. This is often done in Indian cooking to help deglaze.
- Do not overcook Paneer: Add the paneer at the end and cook it for 3-4 minutes maximum, or it will turn rubbery and chewy.
- For Less Spice: This dish is spicy. If you’re looking to tone down the spice, skip the green chilies in this recipe.
- For More Gravy: If you prefer Kadai Paneer with gravy, add more water when you’re adding the bell peppers. Once the bell peppers have cooked down a little, add the paneer.
Serving Suggestions
- I love Kadai Paneer with roti or Jeera Rice. Serve with a side or raita and kachumber salad, too.
- Additionally, Kadai Paneer is delicious in kathi rolls as seen in these Paneer Kathi Rolls.
Tried this recipe? If so, please leave a comment & rate this recipe. That would mean so much to me. If you’re on Instagram, please tag me so I can see your creations. I’m happy to share and mention you. Thank you!
Kadai Paneer (Easy One-Pot Recipe)
INGREDIENTS
For Kadai Masala
- 2 tbsp coriander seeds
- 2 dry red chilies
- 1/2 tsp cumin seeds
- 1 tsp fennel seeds
- 2 green cardamom
- 1/4 tsp black peppercorn
For Soaked Paneer
- 225 grams paneer, cubed into 30 pieces
- boiling water to cover paneer
For Kadai Paneer
- 2 tbsp avocado oil
- 1 tsp cumin seeds
- 1 cup red onion, chopped
- 1 inch piece ginger, grated
- 5 cloves garlic, grated
- 1 green chili, finely chopped
- 1 1/2 cups plum tomatoes (~ 3 tomatoes), pureed
- 1 1/2 tbsp kadai masala, made earlier
- 1/2 tsp Kashmiri chili powder
- 1/4 tsp haldi
- 1/3 cup onion, cubed into 3/4-inch pieces
- 1 cup green bell pepper (~ half bell pepper), cubed into 3/4-inch pieces
- 1 cup red bell pepper (~ half bell pepper), cubed into 3/4-inch pieces
- add soaked & drained paneer
- 1/4 tsp garam masala, made earlier
- 1 tbsp kasoori methi, rubbed
- 2-3 tbsp fresh cilantro, chopped
- 1/4 cup water (optional), to deglaze or for gravy
INSTRUCTIONS
- Make Kadai Masala. Dry roast red chilies, cardamom, peppercorns, coriander, cumin, and fennel seeds for 5 minutes. Cool, then grind into a spice blend; set aside.
- Soak Paneer. Cube paneer into 30 pieces (cut in a 6 x 5 grid). Soak cubed paneer in boiling water for at least 20 minutes.
- Cook Kadai Paneer – Prepare Masala. Heat oil in a heavy-bottomed pot and add cumin seeds. Sauté onions with a little salt until golden (about 8 min). Add ginger, garlic, and green chilies; cook 1 min. Stir in tomato puree, kadai masala, Kashmiri chili powder, and turmeric; cover and cook 5 min. Deglaze with a splash of water if needed and cook down.
- Add Bell Peppers & Paneer. Add bell peppers with salt, plus ¼ cup water; cook 3–4 min. Add paneer and cook 2–3 min. Finish with garam masala, kasoori methi, and cilantro. Serve hot.
NOTES
- How to Cut Paneer: Cut the paneer into small cubes – about 30 in total – ideally arranged in a 6 × 5 grid.
- How to cut Bell Peppers & Onions: For best results, cut the bell peppers and onions into roughly 3/4-inch cubes. This ensures they cook evenly and blend perfectly with the masala.
- Is food sticking?: If onions or tomatoes are sticking at any time, add 2 tablespoons of water to deglaze the pan. This is often done in Indian cooking to help deglaze.
- For Less Spice: This dish is spicy. If you’re looking to tone down the spice, skip the green chilies in this recipe.
- For More Gravy: If you prefer Kadai Paneer with gravy, add more water when you’re adding the bell peppers. Once the bell peppers have cooked down a little, add the paneer.
Nutrition
Love the Kadai masala part of this recipe. All these years been making paneer masala missed out on some of the spice ingredients never thought to use but made a world of difference in this recipe. It’s a keeper!!!
I made the kadhai paneer today & it was a huge hit! Absolutely loved the softness the paneer got by soaking in water. Thank you for this amazing recipe Nisha! ❤️