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Restaurant Style Kadai Paneer

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Kadai Paneer will totally steal your heart! As I write this, I’m literally having leftovers from dinner last night and wow is it amazing! If you follow me on Instagram, then you saw that story of me enjoying leftovers for lunch! By the way, if you’re not following me on Instagram, then you definitely should so you can see sneak peaks for upcoming recipes and all of my kitchen experiments!

I can officially declare that Kadai Paneer is one of my favourite vegetarian dishes for sure! I’ve had it quite a few times at Indian restaurants and this version definitely reminds me of my wonderful experiences at the restaurants! This dish highlights a luscious creamy tomato gravy, soft chunks of paneer, and sautéed veggies, all paired with a wonderful spice blend that’s so aromatic and shines throughout!

Make sure to watch the video at the bottom of this post so you get a visual representation of how to make the the dish from start to finish! I’ll show exactly how to cook the veggies, make the gravy, and how to prepare the spice mixture. If you’re not already, be sure to subscribe to me on YouTube so you’re updated when the corresponding recipe video is live! I love filming the recipes since I find watching the demonstration is a nice complement to the written recipe and you’re set up for success! Let’s get cooking!

What is Kadai Paneer?

Kadai Paneer is a popular Indian vegetarian dish that features paneer as the protein source. In English, paneer is commonly translated to “Indian cottage cheese,” but please don’t substitute paneer for cottage cheese! You’ll regret it instantly, as I have done when I first arrived to Canada!

You can either make your own paneer, as shown in my recipe here, or buy it from a store. I like to buy my paneer for the simple reason that it’s more economical and saves time, but if you can’t find paneer, then making your own is easy - it just requires some patience, but it’s well worth it!

Why is this recipe called “kadai paneer"?" The dish is aptly named after the cooking vessel this dish originated from, a kadai (Indian wok). Kadai works well for a dish such as this since it is great for simmering stews or curries to really bring the flavours together. This dish has a drier curry, the gravy is not as runny as Paneer Makhani, and instead is thick. No worries if you don’t have an actual kadai though! Any wok or deep-set pan will work perfectly fine to make this recipe! As you’ll see in the video and the pictures, I certainly did not make this in a kadai!

Kadai paneer vs. paneer tikka masala

If you’ve seen my Paneer Tikka Masala recipe, you may see that the two recipes are very similar. Both dishes have peppers and onions in the gravy, both gravies are hearty and thick, and they really look identical! Are they interchangeable? Nope, there are subtle differences making them two separate dishes! The distinguishing factors between Kadai Paneer and Paneer Tikka Masala are:

  • The paneer for Kadai Paneer is not skewered and broiled or grilled. The raw paneer is added directly to the curry.

  • The main flavours from Kadai Paneer come from the homemade masala, called kadai masala. You’ll see how this is made in the recipe below.

is kadai paneer spicy?

No it’s not! Whenever I get asked this question, I answer that the dish is flavourful! Our kadai masala is loaded with aromatic spices that will totally transform your gravy, and all those amazing flavours will seep into the paneer and the vegetables. If you are sensitive to spice, you can reduce the amount of dried red chilies in the kadai masala.

Ingredients for Restaurant-style Kadai paneer

Let’s go over what we’ll need for our freshly ground kadai masala and for the curry itself. For all measurements with the full ingredient list, make sure to scroll to the bottom of this post for the FULL PRINTABLE RECIPE CARD, so you can save this recipe for later! The recipe card will also let you choose the number of servings you want to make, so you can easily scale all of the ingredients for the curry and the amount of masala to make the appropriate amount! I definitely recommend making more rather than less, since I think you’ll want leftovers to relive this wonderful paneer dish!

For the kadai masala

For the garnish

  • Paneer

  • Onions

  • Green pepper

  • Olive oil

For the gravy

How to Prepare Kadai Paneer

For the kadai masala

  1. Add all of the whole spices to a pan on medium to medium high heat. Roast for 5-10 minutes or until the spices are aromatic and have browned slightly.

  2. Let the spices cool for a few minutes and then transfer to a mortar and pestle or a spice grinder.

  3. Grind to a coarse consistency and store in an air tight container.

To finish the kadai paneer

Heat a wok on medium-high heat and add oil, sauté peppers and onion for 3-4 minutes. The veggies should get some colour but should still remain crisp. Transfer veggies to a plate and reserve for garnish.

For the gravy

In the same wok, add butter and rest of the oil, add cumin seeds and roast until they begin to change colour and become aromatic.

Add the diced onions, pinch of salt and sauté until soft. Stir often to ensure the onions don’t get too brown. Add julienned ginger and minced garlic, cook until the rawness of the ginger and garlic has cooked out. 

Add tomatoes, the juices released will help deglaze the pan. Cook for 1-2 minutes and the kadai masala and deggi mirch. Mix well and cook until tomatoes are on the verge of breaking down.

Add passata and bring to a simmer on medium heat. Then, add in a pinch of salt cook for 7 - 8 minutes, or until the sauce has reduced and is released from the pan easily. Stir occasionally to ensure sauce does not burn.

Add 1 Tbsp of honey. Mix well and taste, add more honey if you prefer the sauce to be sweeter. Cook for about 30 seconds

Add cream, mix well and toss in the paneer pieces and the sautéed veggies from step 1 and simmer for 1-2 minutes to achieve the desired consistency.

Serve hot and enjoy!

Tips for the Perfect Kadai Paneer

  • Ensure to lightly saute the veggies and paneer in oil to par-cook the veggies.

  • While preparing the homemade kadai spice, ensure to grind just enough to leave a coarse texture. This will add to the texture and flavour in the sauce.

  • If you cannot find passata or pureed tomatoes, you can substitute with freshly pureed tomatoes, 1:1 volume.

  • While you can use heavy cream instead of 10% table cream, you might need to use some water to dilute the sauce if it has thickened too much.

Serving Suggestions for Kadai Paneer

The thick and chunky gravy of Kadai Paneer makes Rumali Roti an ideal bread to pair with the dish, since the paper-thin bread can be smothered with the spicy tomato masala and paneer. I would also recommend serving with Homemade Tandoori Naan or Punjabi Lachha Paratha!

If you want rice in addition to or in place of bread, here are my recommendations!

MORE PANEER RECIPES!

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Watch How to Make Restaurant Style Kadai Paneer Here:

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