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The Sassy Foodie » Recipes » Mains

Kadai Paneer {Dhaba Style}

Published: Jun 21, 2022 by Sunena Anand · This post contains affiliate links. I make a commission from sales. As an Amazon Associate, I earn from qualifying purchases. · Leave a Comment

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This dhaba style kadai paneer is a simple and flavourful way to make paneer, and incorporate more meatless recipes in your weekly rotation - made in the style of an Indian "diner" or dhaba! Soft paneer comes together in a quick and easy masala made with punchy onions, tomatoes, and the right amount of spice. Ready in under 30 minutes, from scratch, and goes perfectly with homemade onion pulao, tandoori naan, or cheesy parathas!

Dhaba style kadai paneer served in a large skillet, with a wooden spoon.
Jump to:
  • Why This Recipe Works
  • Ingredients
  • Instructions
  • Expert Tip
  • Substitutions
  • Variations
  • Equipment
  • Make Ahead & Storage
  • Recipe FAQs
  • Kadai Paneer {Dhaba Style}
  • 💬 Comments

Why This Recipe Works

Fresh ingredients! You do not need to buy jarred masalas to make this paneer. With simple, pantry ingredients you can make a quick, homemade masala that is packed with bright flavours.

Fully vegetarian! If you have vegetarians in the family, this recipe will satisfy meat eaters and vegetarians alike! Paneer is extremely filling - you won't even miss the meat!

Make-ahead components! You can make the masala component of this paneer ahead of time, and keep it in the fridge. Keeping it on hand makes for quick cooking when you are ready to serve.

Ingredients

Ingredients for kadai paneer, labelled on a sheet tray.
  • Paneer: You can use a fresh brick of paneer, or the pre-fried and cubed paneer as well. You will often find paneer in the dairy section, or the freezer section if you are looking for pre-fried and cubed paneer.
  • White onion: White onion is the base of the masala. You will want to caramelize the onions for a deep flavour. White onions work best for this, as they are a little less pungent and sharp than red onions.
  • Fresh tomato: Fresh tomatoes are the other key component to making the kadai masala. Do not be alarmed - they will break down, and you will not have large chunks of tomato in the dish.
  • Tomato puree: Tomato puree adds acidity to the sauce for the paneer, while adding another depth of tomato flavour.
  • Spices & seasoning: You will need ground cumin, coriander, fennel seed, turmeric, and Kashmiri red chilli powder.
  • Heavy cream: The addition of heavy cream is optional. It adds a richness to the sauce, when finishing the paneer.
  • Red and green bell pepper
  • Red onion
  • Green chilli
  • Ginger & garlic paste

A full list of ingredients with measurements is located on the recipe card, below.

Instructions

Prep Work Before Cooking

Collecting all your ingredients - This will make cooking so much easier. Gather all the spices you will need, and keep them nearby. 

Prep the ingredients - Finely dice the white onion and fresh tomato. Roughly chop the red onion and bell peppers into bite-sized pieces. Cube the fresh paneer, and mince the green chilli.

Step by step instructions to prepare kadai paneer, in a collage.

Heat a large skillet over high heat. In a tablespoon of olive oil, brown the paneer cubes, red onion and bell pepper. Once the paneer is browned on all sides, remove from the skillet and set aside.

Add 2 tablespoons of oil to the same skillet that the paneer was browned in. Turn the heat to medium, and add the diced white onion. Let the onion fry until golden brown all around.

Add the diced tomato, green chilli and spices to the fried onions. Let the tomatoes cook through become soft. The tomatoes and onions should come together and form a paste-like consistency. Once the tomatoes have come together, add the tomato puree and cook through for 2-3 minutes.

Put the paneer, bell peppers and onions back in the masala. Add some water to the pan to loosen the masala, and combine. Add heavy cream to finish, and serve.

Expert Tip

Give the onions time! To get the right consistency masala, you need to give the onions time to get soft and golden brown. I also recommend making sure that you have enough oil in the pan. A dry pan will not get the onions to the consistency and colour that you need for this masala.

Substitutions

  • Paneer: You can use firm tofu in place of paneer.
  • Kashmiri red pepper: You can use a mix of paprika and red chilli powder to replicate kashmiri red pepper.
  • Heavy cream: You can use a little bit of yogurt in the masala to finish, instead of heavy cream. This will add another layer of tang.

Variations

  • Mild: Omit the green chilli to make this a mild recipe, and kid friendly.
  • Gravy: If you prefer a thinner gravy consistency, you can add more water to the pan to thin out the masala.

Equipment

This is what I used to make this recipe - Please be mindful that different equipment and cooking utensils may yield varying results. Most of my favourite equipment can be found on my storefront.

  • Large skillet

Make Ahead & Storage

Make Ahead Instructions

You can make the masala 3-4 days in advance. Store in an airtight container in the fridge, until you are ready to use.

You can make the paneer dish completely 2-3 days in advance, and you can reheat when you are ready to serve. Store cooked paneer in the fridge, or freeze for up to 3 months.

Storing Leftovers

Store leftover paneer in an airtight container for 2-3 days in the fridge, or freeze leftovers for up to 3 months. Reheat in the microwave, or on the stove.

Closeup shot of kadai paneer being served on a wooden spoon.

Recipe FAQs

What is kadai paneer?

Kadai paneer gets its name from the traditional cooking vessel that is used to prepare it. A kadai (or karahi) is a wok-style pot, that has high edges and retains heat well, just like a wok.

What is the difference between shahi paneer and kadai paneer?

Shahi paneer and kadai paneer are both popular paneer dishes, but are extremely different. Shahi paneer is made with a tomato-based gravy, with aromatic spices and cashews. Kadai paneer is much more savoury, with the addition of bell peppers and onions.

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Kadai Paneer {Dhaba Style}

This dhaba style kadai paneer is a simple and flavourful way to make paneer, and incorporate more meatless recipes in your weekly rotation - made in the style of an Indian "diner" or dhaba! Soft paneer comes together in a quick and easy masala made with punchy onions, tomatoes, and the right amount of spice. Ready in under 30 minutes, from scratch!
5 from 1 vote
Print Pin Rate Save Saved!
Prep Time: 10 minutes
Cook Time: 20 minutes
Total Time: 30 minutes
Servings: 4 Servings
Estimated Calories: 357kcal
Author: Sunena Anand

Ingredients

  • 350 g Paneer cubed
  • ½ Green bell pepper cut in bite-sized pieces
  • ½ Red bell pepper cut in bite-sized pieces
  • 1 Red onion cut in bite-sized pieces

For the Masala

  • 1 White onion finely diced
  • 1 Hot house tomato finely diced
  • 1 tablespoon Ginger & garlic paste
  • ¼ cup Tomato puree
  • ¼ teaspoon Turmeric
  • 1 teaspoon Ground cumin
  • 1 teaspoon Ground coriander
  • 1 teaspoon Ground fennel seeds
  • 1 teaspoon Kashmiri red pepper
  • 1 Green chilli minced
  • ½ cup Water
  • ¼ cup Heavy whipping cream
  • Salt to taste

Equipment

  • Large skillet

Instructions

  • Brown the paneer: Heat a large skillet over high heat. In a tablespoon of olive oil, brown the paneer cubes, red onion and bell pepper. Once the paneer is browned on all sides, remove from the skillet and set aside.
    350 g Paneer, ½ Green bell pepper, ½ Red bell pepper, 1 Red onion
  • Brown the onions: Add 2 tablespoons of oil to the same skillet that the paneer was browned in. Turn the heat to medium, and add the diced white onion. Let the onion fry until golden brown all around.
    1 White onion
  • Make the masala: Add the diced tomato, green chilli and spices to the fried onions. Let the tomatoes cook through become soft. The tomatoes and onions should come together and form a paste-like consistency. Once the tomatoes have come together, add the tomato puree and cook through for 2-3 minutes.
    1 Hot house tomato, 1 tablespoon Ginger & garlic paste, ¼ cup Tomato puree, ¼ teaspoon Turmeric, 1 teaspoon Ground cumin, 1 teaspoon Ground coriander, 1 teaspoon Ground fennel seeds, 1 teaspoon Kashmiri red pepper, 1 Green chilli, Salt to taste
  • Finish: Put the paneer, bell peppers and onions back in the masala. Add some water to the pan to loosen the masala, and combine. Add heavy cream to finish, and serve.
    ½ cup Water, ¼ cup Heavy whipping cream

Estimated Nutrition

Calories: 357kcal | Carbohydrates: 13g | Protein: 14g | Fat: 28g | Saturated Fat: 17g | Polyunsaturated Fat: 0.4g | Monounsaturated Fat: 2g | Cholesterol: 75mg | Sodium: 77mg | Potassium: 335mg | Fiber: 3g | Sugar: 6g | Vitamin A: 1333IU | Vitamin C: 43mg | Calcium: 467mg | Iron: 1mg
Course: Main Course
Cuisine: Indian
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Hi, I'm Sunena! I am a law student by day, and a homecook with a passion for food, by night! Welcome to my online kitchen, where I make easy, quick recipes that are tried and true family favourites!

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