Paneer ki Sabji is a popular Indian curry made with paneer (Indian cottage cheese) cooked in a spiced gravy. It is commonly served with roti, paratha, or rice and can range from dry to semi-gravy or rich curry versions. In my recipe, paneer is simmered in a flavorful onion-tomato gravy along with capsicum (green bell pepper), making it a delicious and satisfying dish that’s perfect for everyday meals or casual gatherings.
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 chillies 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.