Restaurant Style Kadhai Paneer Recipe
Kadhai Paneer is one of those Indian dishes that can instantly make a simple meal feel special. Soft paneer cubes, colorful capsicum and onions are cooked in a rich onion-tomato gravy with aromatic Indian spices.
This restaurant-style Kadhai Paneer recipe has a creamy, flavorful gravy while the lightly sautéed vegetables retain a little crunch. The final touch of roasted coriander seeds and dry red chillies gives the dish an extra aroma and flavor.
It tastes wonderful with lachha paratha, naan, roti or jeera rice and makes a great choice for a family lunch or dinner.
Ingredients for Kadhai Paneer
Main Ingredient
- 500 g paneer, cut into small cubes
For the Gravy
- 2 medium onions, chopped
- 4 tomatoes, chopped
- 1 piece ginger
- 5–6 garlic cloves
- 2 green chillies
Vegetables
- 1 onion, diced
- 1 green capsicum, cut into small squares
- ½ red capsicum, cut into small pieces
- ½ yellow capsicum, cut into small pieces
Whole Spices
- 2 tbsp oil
- 4 cloves (laung), slightly crushed
- 3–4 black peppercorns
- 1 black cardamom (moti elaichi)
- 2 bay leaves (tej patta)
- 1 small cinnamon stick (dalchini)
Powdered Spices
- Salt to taste
- ½ tsp Kashmiri red chilli powder
- ½ tsp turmeric powder (haldi)
- ½ tsp garam masala
- 1 tsp coriander powder
- 1 tsp chicken masala*
- 1 tsp chana masala
- Kasuri methi (dried fenugreek leaves), as required
For Creaminess
- 2–3 tsp fresh cream or malai
- ¼ tsp sugar
- Water as required
Special Kadhai Masala Finish
- Coriander seeds (sabut dhania), a small amount
- 2 dry red chillies
- A little red chilli powder
Garnish
- Fresh coriander leaves
Note: If using chicken masala in this vegetarian recipe, check the ingredient label and choose a vegetarian spice blend. You can also substitute it with a suitable vegetarian masala if preferred.
HOW TO MAKE RESTAURANT STYLE KADHAI PANEER
Step 1 – Prepare the Gravy Base
Heat a little oil in a pan.
Add the chopped onions, tomatoes, ginger, garlic and green chillies.
Cook until the onions and tomatoes become soft and well cooked.
Switch off the heat and allow the mixture to cool.
Once cooled, grind it into a smooth paste. Keep aside.
Step 2 – Sauté the Vegetables
Heat a little oil in a separate pan.
Add the diced onion, green capsicum, red capsicum and yellow capsicum.
Stir-fry them on high heat for a short time.
Do not overcook the vegetables. Keeping a little crunch gives the Kadhai Paneer a much better texture.
Remove from the pan and keep aside.
Step 3 – Prepare the Whole-Spice Tempering
Heat approximately 2 tablespoons of oil.
Add:
- Cloves
- Black peppercorns
- Black cardamom
- Bay leaves
- Cinnamon
Allow the spices to release their aroma into the oil.
Step 4 – Cook the Kadhai Paneer Gravy
Add the prepared onion-tomato paste.
Cook the gravy properly until it becomes thick and the raw flavor disappears.
Now add:
- Salt
- Kashmiri red chilli powder
- Turmeric
- Garam masala
- Coriander powder
- Chicken masala
- Chana masala
Mix everything thoroughly and continue cooking the masala.
Add a little water as required to adjust the consistency.
Step 5 – Make the Gravy Creamy
Add 2–3 teaspoons of fresh cream or malai and approximately ¼ teaspoon sugar.
Mix well.
The cream adds richness to the gravy while the tiny amount of sugar helps balance its flavors.
Step 6 – Add Paneer and Vegetables
Add the sautéed onions and capsicums to the prepared gravy.
Now gently add the paneer cubes.
Mix carefully so that the paneer does not break.
Cook briefly so that the paneer and vegetables absorb the flavors of the gravy.
Step 7 – Prepare the Special Finishing Masala
Lightly roast some whole coriander seeds and 2 dry red chillies.
Crush them coarsely.
Add this mixture to the Kadhai Paneer along with a little red chilli powder.
This finishing masala gives the dish its lovely fresh coriander and chilli aroma.
Step 8 – Final Touch
Crush some kasuri methi between your palms and add it to the gravy.
Finish with freshly chopped coriander leaves.
Your Restaurant Style Kadhai Paneer is ready!
Serve hot with lachha paratha, naan or roti. (Roti Maker)
WATCH THE VIDEO 🎥
Watch Restaurant Style Kadhai Paneer Recipe
Prefer watching the recipe step by step? Watch my complete Kadhai Paneer video below and see exactly how the gravy, vegetables and paneer come together.
AAOCOOKKARE TIPS ⭐
Tips for Perfect Kadhai Paneer
- Do not overcook the capsicum. A slight crunch gives the dish a restaurant-style texture.
- Use fresh, soft paneer for the best result.
- Cook the onion-tomato paste thoroughly before adding the paneer.
- Add cream towards the later stage of cooking.
- Crush the roasted coriander seeds and dry chillies coarsely rather than making them into a fine powder.
- Add kasuri methi near the end for maximum aroma.
Recommended Kitchen Items
A good heavy-bottomed kadai helps cook the masala evenly without burning it.
Mixer Grinder for Making Smooth Gravies
You May Also Like
Restaurant Style Chicken Keema
Enjoy Your Homemade Kadhai Paneer!
This easy restaurant-style Kadhai Paneer is rich, colorful and packed with flavor. The creamy gravy, soft paneer and lightly crunchy vegetables make it perfect for a special lunch or dinner at home.
If you try this recipe, share it with your family and friends and explore more easy homemade recipes on Aaocookkare.

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