Kadai Paneer is a popular North Indian dish made with paneer cooked in a spiced tomato-based gravy along with onions and capsicum. The dish is flavored with freshly ground kadai masala and traditionally cooked in a thick-bottomed kadai. This version has a bold, slightly smoky taste and is commonly served with Indian breads.
In a spice-grinder or mixer-grinder or mortar-pestle take the coriander seeds and red chilies.
Grind to a semi-fine powder or fine powder and set aside.
Making kadai paneer
In a kadai or frying pan, heat oil. Add finely chopped onions and sauté them till they turn translucent.
Then add ginger-garlic paste. Saute till the raw aroma of ginger-garlic goes away.
Now add the finely chopped tomatoes. Saute tomatoes for 3 to 4 mins.
Then add the ground kadai masala to the tomatoes.
Saute the tomatoes till the whole mixture become like a paste and starts to leave oil. The mixture will also look glossy and you will see oil releasing from the sides.
Now add the capsicum julienne. Saute the capsicum for about 3 to 4 minutes.
Then add green chilies and water.
Mix very well and saute till the capsicum is half-cooked.
Add salt and garam masala powder. Mix these well.
Next add the paneer cubes and gently stir to combine with the sautéed masala base.
Serve kadai paneer, hot or warm with Indian flat breads - roti, paratha or naan.
You can also serve it with a soft bread or fluffy dinner rolls and even jeera rice or peas pulao or steamed rice. Remember to serve with a side of thinly sliced onions and lemon wedges.
You can make grilled sandwiches, toasties or a wrap or roll with the dry kadai paneer. Add some melting cheese when making these warm sandwiches or rolls.
Another idea is to make a pizza with the semi-dry kadai paneer and mozzarella cheese as toppings.
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Notes
No kadai: You can easily make this in a frying pan or a wok. Kadai masala: Made with coriander seeds and dried red chilies. You can add a little cloves, cinnamon and green cardamom for extra flavor.
Dry red chilies: Use chilies with low to medium heat. Kashmiri red chilies are a good choice as they add color without too much heat.
Grinding spices: Grind in a small grinder or spice grinder. If using a mortar-pestle, lightly roast the spices first to make grinding easier.
Paneer: Homemade paneer works best, but store-bought is fine. If using frozen paneer, soak in hot water before adding.
Tomatoes: Use ripe, red and slightly sweet tomatoes. Avoid very sour ones.
Onions: Both red and white onions can be used.
Capsicum: Green capsicum is traditional, but red or yellow can be used for a slightly sweet taste. Slice into strips or julienne for quicker cooking.
Garnish: Finish with ginger julienne and coriander leaves. Ginger adds a fresh, sharp flavor.
Vegan option: Use tofu instead of paneer and oil instead of butter or ghee.