Paneer ki Sabji is a comforting North Indian curry made with soft paneer cubes and crunchy capsicum simmered in a flavorful, rich, spiced and tangy gravy. The sauce is a delicious blend of sautéed onions, tomatoes, cream, yogurt, cashews and a warming mix of spices, creating a dish that’s both hearty and indulgent – perfect for serving with roti, naan or rice. One of my go-to Paneer Recipes.
About Paneer ki Sabji
The word ‘sabji‘ or ‘sabzi‘ refers to a cooked vegetable dish commonly found in Indian cuisine. It typically involves sautéing or simmering vegetables with spices.
Paneer Sabzi is a variation where small cubes of Indian cottage cheese, called paneer are added to a spiced gravy, making it a flavorful main dish.
This Paneer ki Sabji recipe features a velvety, indulgent gravy enriched with fresh cream and golden-fried cashews.
The cream not only enhances the consistency but also lends a mellow richness that pairs wonderfully with Indian breads like roti and paratha.
I often toss in green capsicum for an earthy, mildly spicy twist – it adds a lovely depth of flavor. However, the dish still shines even without it, so feel free to skip it if unavailable.
The curry base I use here is similar to my vegetable curry (and a few other dishes), with a comforting mix of sautéed onions and tomatoes, familiar spices, and a smooth finish with cream.
What makes this dish stand out is the garnish of pan-fried cashews and slit green chilies – a touch I’ve adapted from my Vegetable Curry recipe.
The cashews add a gentle sweetness and crunch, while the chillies lend heat and bring a layer of texture that beautifully contrasts the creamy, smooth gravy.
This dish is simple to put together: first fry the cashews and chillies, then prepare the onion-tomato masala with yogurt, sauté the bell peppers, add water and make curry.
Lastly add paneer; then finish with a swirl of cream, fried cashews, and green chillies, and dry fenugreek leaves. I prefer using homemade Paneer – it’s fresher, more hygienic and cost-effective too.
Note that the fried cashews and green chillies are added directly to the gravy to enhance richness and flavor. You can optionally reserve a few to use as a garnish for added crunch.
This Paneer Sabzi is best served hot with paratha, phulka or even a bowl of jeera rice for a satisfying and wholesome meal.
If you enjoy paneer-based dishes, you might also like these popular recipes:
- Paneer Butter Masala – rich, creamy, and restaurant-style
- Kadai Paneer – spicy and flavorful with bold masalas
- Palak Paneer – comforting and made with fresh spinach
- Matar Paneer – a homestyle curry with green peas and paneer
How to make Paneer ki Sabji
Fry Cashews & Green chilies
1. Heat 3 tablespoons oil in a sauté pan or kadai. On medium heat, fry 10 to 12 cashews till golden in oil. Remove and drain on a paper towel to remove excess oil.
2. Then, fry 2 green chilies (slit lengthwise) in the same oil. Slitting them helps prevent the seeds from bursting in hot oil.
Tip: You can also remove the seeds before frying if you prefer less heat.
3. Remove and drain green chilies on a paper towel to remove excess oil. Place them aside.
Make Onion Tomato Yogurt Base
4. Now, in the same oil, add ⅓ to ½ cup finely chopped onions (about 1 medium-sized onion). Sauté the onions, stirring often, until they turn soft or light golden.
5. Next add 1 teaspoon ginger-garlic paste. Sauté until the raw aroma of the ginger-garlic paste dissipates.
6. Now, add 1 cup finely chopped tomatoes (2 medium to large tomatoes).
Sauté the tomatoes, stirring often, until they turn soft and pulpy and the oil starts to separate from the sides.
7. Reduce heat to a low and add the following ground spices:
- 1 teaspoon Kashmiri red chili powder
- 1 teaspoon turmeric powder
- 2 teaspoons coriander powder
- 1 teaspoon garam masala powder
Mix well and sauté for a minute on low heat
8. Next lower the heat or turn it off. Add 5 tablespoons fresh full-fat curd (yogurt).
Mix quickly and fast, so that the curd does not split or separate. Mix really well. Do not use toned milk yogurt as it will split in the gravy.
Add Bell Peppers
9. Add ½ cup thinly sliced capsicum (green bell pepper). Turn on the heat, if you had turned it off.
Note: Adding capsicum is optional. You can also use red or yellow bell peppers for more color and a subtle sweetness, if you have them on hand.
10. Add 1 cup water and salt as required.
11. Cook the capsicum over medium-low to medium heat, stirring often, for about 3 to 4 minutes until al dente (half-cooked with a slight crunch).
If you prefer them fully done, continue for 5 to 6 minutes until softened and tender.
Make Paneer Sabzi
12. When you see oil floating on the top of the curry, it is time to add paneer. Lower the heat and add 150 to 200 grams of chopped paneer cubes. Stir and mix well.
13. Next add 4 to 5 tablespoons cooking cream or light cream or low-fat cream. Mix the cream gently with the gravy. Turn off heat.
14. Lastly, add the fried cashews, fried green chillies and ½ teaspoon crushed kasuri methi (dried fenugreek leaves). Mix again.
If you prefer, garnish the Paneer Sabji with the fried cashews and green chilies just before serving.
Serving & Storage Suggestions
Garnish Paneer ki Sabji with chopped coriander leaves and serve hot with Roti, Paratha, or Tandoori Roti.
It also pairs well with Steamed Basmati Rice or jeera rice. For a richer meal, try serving it with plain Naan or Garlic Naan.
A side of Onion Raita, Boondi Raita, or a simple Kachumber Salad also complements the flavors well.
Paneer Sabzi is best enjoyed fresh, but leftovers can be stored in an airtight container in the refrigerator for up to 1 to 2 days.
Reheat gently on the stovetop or in a microwave, adding a splash of water if needed to loosen the gravy. Avoid freezing as the texture of paneer may become chewy or grainy.
Expert Tips
- Avoid frying the paneer: Frying paneer can sometimes make it chewy or tough. It’s best to skip this step to keep the texture soft and tender.
- Add paneer at the end: For the best texture, add the paneer 1 to 2 minutes before turning off the heat. Cooking it for longer can make it rubbery or chewy.
- Don’t skip the cream: While you can use less cream if preferred, I highly recommend keeping it in the recipe – it adds a delightful richness and enhances the overall flavor in the Paneer Sabzi recipe.
- Faster cooking: Sprinkle a pinch of salt over the onions and tomatoes as they cook. This helps them soften more quickly and blend into the gravy better.
- Lighter option: Watching your calorie intake? You can skip frying the cashews and green chilies. Just toss them in along with the capsicum – they’ll still bring flavor without the extra oil.
- Vegan version: To make this recipe vegan, replace paneer with extra-firm tofu. Use a plant-based yogurt (like cashew or almond yogurt) instead of dairy curd, and swap fresh cream with cashew cream or any neutral-flavored vegan cream.
FAQs
Yes, store-bought paneer works fine, but if you have the time, homemade paneer offers a fresher taste and softer texture. Just make sure to soak store-bought paneer in warm water for 10 to 15 minutes to soften it before using.
It’s not necessary to fry the paneer. In fact, skipping the frying keeps it soft and tender. Frying can make paneer chewy or rubbery, especially if overcooked.
Cashews add a natural sweetness and richness to the gravy, but if you prefer a nut-free version, you can omit them or replace them with melon seeds (magaz) or just use cream for the richness.
Capsicum is commonly added for its slight crunch and flavor. You can also toss in green peas, sweet corn or even baby corn for extra variety.
More Paneer Recipes To Try!
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Paneer ki Sabji (Easy Paneer Sabzi Recipe)
Ingredients
- 3 tablespoons oil
- 10 to 12 cashews
- 2 green chillies – slit lengthwise
- ½ cup or (1 medium ) onion – finely chopped
- 1 teaspoon Ginger Garlic Paste or 3 to 4 small to medium garlic cloves & 1-inch ginger crushed to a fine paste in a mortar
- 1 cup or (2 medium to large) tomatoes – finely chopped
- ½ teaspoon turmeric powder
- 1 teaspoon kashmiri red chilli powder or ½ tsp of any other variety of red chilli powder
- 1 teaspoon Garam Masala or sabji masala
- 2 teaspoons Coriander Powder
- 5 tablespoons Curd (yogurt), full-fat and made from whole milk
- ¾ to 1 cup or (1 medium to large) capsicum – sliced thinly or diced/cubed (green bell pepper or shimla mirch)
- 1 cup water or add as needed
- salt as required
- 150 to 200 grams Paneer – cubed (Indian cottage cheese)
- 4 to 5 tablespoons light cream or cooking cream or low fat cream (25% to 30% low fat)
- ½ teaspoon dry fenugreek leaves (kasuri methi)
- 2 to 3 tablespoons coriander leaves – optional, for garnish
Instructions
Preparation
- Heat 3 tablespoons oil in a pan or kadai. Fry the cashew on medium heat until golden.
- Remove them and drain on paper towels to remove excess oil.
- Then fry the slit green chillies in the same oil. Remove and drain them too.
Making Paneer ki Sabji
- Now in the same oil, add the finely chopped onions. Sauté the onions on medium-low to medium heat, till they soften or turn light golden.
- Add the ginger-garlic paste. Sauté until the raw aroma of the ginger-garlic goes away.
- Next add the finely chopped tomatoes. Sauté the tomatoes on medium-low to medium heat, until the they become mushy and the oil separates at the sides.
- Reduce the heat and add all the dry spice powders – turmeric powder, kashmiri red chilli powder, coriander powder and garam masala.
- Mix very well and sauté for a minute on low heat.
- Reduce the heat to its lowest or turn it off. Add the full-fat curd (yogurt). Mix quickly and fast, so that the curd does not separate or split.
- Next add thinly sliced capsicum. Add water and salt. Mix very well. Turn on the heat if you have switched it off.
- Cook the capsicum on medium-low to medium heat, stirring often, for 3 to 4 minutes until it is al dente – slightly tender with a bit of crunch. For a softer texture, cook for 5 to 6 minutes until fully done and tender.
- Once you see oil specks appearing on top of the gravy, add the paneer cubes and mix gently.
- Next, add the cream and stir gently to combine it evenly. Turn off the heat.
- Add the fried cashews, fried green chillies and crushed dry fenugreek leaves (kasuri methi).If you prefer, garnish the curry with the fried cashews and green chilkies just before serving.
- Mix again gently.
- Serve Paneer ki Sabji hot or warm garnished with coriander leaves.
Serving & Storing Suggestions
- Paneer Sabzi pairs beautifully with phulka, paratha, tandoori roti, or even jeera rice. A side of raita or salad makes it a complete meal.
- Store any leftovers in an airtight container in the refrigerator for up to 2 days. Reheat gently on the stovetop or in a microwave, adding a splash of water if needed to adjust the consistency.
Notes
- Capsicum is optional: You can skip it. If not using, cook the gravy until you see oil specks before adding paneer. Adjust water as needed.
- Avoid frying paneer: It can become chewy. For a soft texture, skip frying and add it directly to the gravy.
- Cooking paneer at the end: Do not overcook, as paneer can become chewy or rubbery if simmered too long.
- Don’t skip the cream: Even a small amount adds richness and brings the flavors together beautifully.
- Yogurt: Do not use toned milk yogurt or curd made from low fat milk, as it may split in the gravy.
- Speed up cooking: Add a pinch of salt while sautéing onions and tomatoes to help them soften faster.
- Optional: Skip frying cashews and green chilies. Add them raw with the capsicum for less oil and good flavor.
