Kadai Paneer is almost like a stir-fry of onions, bell peppers, and paneer. The sauteed mixture is then added to a tomato-based masala sauce with freshly ground spices.
What is Kadai Paneer?
Kadai Paneer is essentially an Indian cheese (paneer) dish that is cooked in an iron wok. For this recipe, I am not using an iron wok, but rather a nonstick wok.
Kadai Paneer is typically a dry subzi that consists of onions, bell peppers, and paneer first sauteed and added to a tomato masala mixture.
This dish goes pairs perfectly with roti.
Can I make this recipe vegan, gluten-free?
For a vegan option: Substitute paneer with tofu. The taste will not be the same, but tofu resembles paneer.
This recipe is already gluten-free.
Tips on making Kadai Paneer:
- Make the Kadai Masala.
- Soak the paneer for 20 minutes in hot water.
- Chop all the ingredients needed for the recipe.
- Saute the paneer and veggies.
- Prepare the tomato masala sauce.
- Add the paneer and veggies to the sauce.
Ingredients you’ll need for Kadai Paneer:
Kadai Masala: I strongly recommend making your own Kadai Masala for this recipe because fresh always tastes better. To make freshly ground masala, you will need coriander seeds, dry red chilies, cumin seeds, fennel seeds, green cardamom, and black peppercorn. If you don’t want to make homemade masala, you can always use a store-bought version.
Paneer: I always use store-bought. The key is to soak it in hot water for 20 minutes which results in soft paneer. Alternatively, you may use homemade paneer.
Bell Peppers: I used a combo of red and green bell peppers, but feel free to use any combo you like – red, green, yellow, or orange.
Onions – You will need onions twice in this recipe. First, cube the onions for the saute, and then chop the onions for the masala sauce.
Tomatoes: Be sure to puree the tomatoes for this recipe. I used 4 plum tomatoes here.
Kadai Paneer is:
Mouthwatering
Delicious
Vegetarian
Gluten-free
Perfect with Roti
How to make Kadai Paneer recipe step by step?
Prep
1. In a nonstick wok, dry roast the Kadai Masala spices for a few minutes until slightly golden brown.
2. Use a coffee grinder to grind the spices into a powder consistency.
3. Cube the paneer. I used store-bought.
4. Soak in hot water for 20 minutes. This will help soften the paneer.
5. Cube the onions, red & green bell peppers.
6. Chop the red onions, ginger, and garlic.
7. Puree the tomatoes.
8. Tomatoes are pureed.
Saute the Paneer & Veggies
1. Heat up a wok on medium heat, once hot, add 1 tbsp avocado oil. Add the cubed onion, red & green bell peppers.
2. Immediately after, add the cubed paneer that has been drained properly. Saute for about 4 minutes. The idea is to saute the vegetables, but don’t overcook them.
3. Top with 1 1/2 tbsp kadai masala. Gently stir. Cook for 2 minutes at most else the paneer will become rubbery.
4. Once done, set aside.
Cook the Kadai Paneer
1. In the same wok, add oil. Once hot, add cumin seeds and turmeric powder.
2. Add ginger, garlic, and red onions. Saute for 5 minutes until slightly browned.
3. Add red chili powder and season with a little salt. Cook for a minute.
4. Pour the tomato puree over the onions. Stir.
5. Cover and cook the mixture for 10-12 minutes or until a paste-like consistency form.
6. Add 2 tbsp kadai masala to the tomato paste. Mix well.
7. Now add the sauteed paneer and veggies. Also, add kasoori methi (rub between the palm of your hands). Cook for a minute.
8. Finish off with another 1 tbsp of kadai masala. Stir. Turn off the stove.
9. Garnish with fresh cilantro leaves.
Enjoy!

More Paneer Recipes!
Kadai Paneer
Equipment
Ingredients
for kadai masala
- 4 tbsp coriander seeds
- 4 dry red chilies
- 1 cumin seeds
- 1 tsp Fennel seeds
- 4 green cardamom
- 1/2 tsp black peppercorn
for sauteed paneer
- 1 tbsp avocado oil
- 1/2 red bell pepper cubed
- 1/2 green bell pepper cubed
- 1 medium onion cubed
- 400 grams paneer cubed
- 1 1/2 tbsp kadai masala made earlier
- salt to taste
for kadai paneer
- 2 tbsp avocado oil
- 1 tsp cumin seeds
- 1/4 tsp haldi
- 1 cup red onion chopped
- 1 tsp red chili powder
- 1 1/2 inch piece ginger chopped
- 6 cloves garlic chopped
- 5 plum tomatoes pureed
- 2 tbsp kadai masala made earlier
- 1/2 tsp red chili powder
- add sauteed paneer
- 1 tbsp kasoori methi
- 1 tbsp kadai masala made earlier
for garnish
- fresh cilantro leaves chopped
Instructions
Prep
- In a nonstick wok, dry roast the Kadai Masala spices for a few minutes until slightly golden brown.
- Use a coffee grinder to grind the spices into a powder consistency.
- Cube the paneer. I used store-bought.
- Soak in hot water for 20 minutes. This will help soften the paneer.
- Cube the onions, red & green bell peppers.
- Chop the red onions, ginger, and garlic.
- Puree the tomatoes.
- Tomatoes are pureed.
Saute the Paneer & Veggies
- Heat up a wok on medium heat, once hot, add 1 tbsp avocado oil.
- Add the cubed onion, red & green bell peppers.
- Immediately after, add the cubed paneer that has been drained properly. Saute for about 4 minutes. The idea is to saute the vegetables, but don't overcook them.
- Top with 1 1/2 tbsp kadai masala. Gently stir. Cook for 2 minutes at most else the paneer will become rubbery.
- Once done, set aside.
Cook the Kadai Paneer
- In the same wok, add oil. Once hot, add cumin seeds and turmeric powder.
- Add ginger, garlic, and red onions. Saute for 5 minutes until slightly browned.
- Add red chili powder and season with a little salt. Cook for a minute.
- Pour the tomato puree over the onions. Stir.
- Cover and cook the mixture for 10-12 minutes or until a paste-like consistency form.
- Add 2 tbsp kadai masala to the tomato paste. Mix well.
- Now add the sauteed paneer and veggies. Also, add kasoori methi (rub between the palm of your hands). Cook for a minute.
- Finish off with another 1 tbsp of kadai masala. Stir. Turn off the stove.
- Garnish with fresh cilantro leaves.
Nutrition
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! ❤️
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!!!