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Kadai Paneer or Cottage Cheese with Capsicum is ready

Kadai Paneer, Cottage Cheese with Capsicum Masala Recipe

Sumit Malhotra
Make this most popular restaurant style Kadai Paneer curry at home by following this easy recipe. This fried cottage cheese with capsicum is finger-licking good!
Prep Time 5 mins
Cook Time 10 mins
Total Time 15 mins
Course Main Course
Cuisine Indian
Servings 4 people
Calories 248 kcal


  • 200 grams Cottage Cheese Cut in 2.5 inch long strips
  • 1.5 tbsp Ghee
  • 1 tbsp Coriander Seeds
  • 1 tsp Cumin Seeds
  • 1.5 Piece Onions Medium sized
  • 2 Piece Tomatoes
  • 5 Cloves Garlic Crushed
  • 0.5 inch Ginger Crushed
  • 2 tbsp Tomato Puree
  • 1/2 tsp Red Chili Powder
  • 1/4 tsp Turmeric Powder
  • 1 tbsp Coriander Powder
  • 1 tsp Garam Masala Powder
  • 2 tbsp Cream
  • 0.5 Piece Capsicum Cut into strips of the size of paneer
  • 1 tsp Salt


  • Cut cottage cheese or paneer into 2.5 inch long strips.
  • Roughly chop onions and tomatoes. Slice capsicum or Shimla mirch into strips of the size of panner.
  • Heat ghee or clarified butter in a wok or a Kadai. If you don’t have a Kadai you can use any frying pan.
  • Add coriander seeds and cumin seeds to hot ghee and let them splutter.
  • Add onions and fry till just about brown.
  • Add tomatoes and salt to fasten the cooking process.
  • When slightly mushy add tomato puree and crushed ginger and garlic. Fry till the raw smell of ginger and garlic goes away.
  • Add powdered masalas and cook till they give out their fragrance and then add some cream to the masala. Cream adds a little richness to this recipe.
  • Add capsicum and mix well. Don’t let the capsicum wilt.
  • Once capsicum or Shimla mirch has mixed well add the paneer strips to the masala and mix again.
  • Leave it on slow fire for about 3-4 minutes and your Kadai paneer is ready to be served.
  • Enjoy it with roti, naan or parantha. Goes very well with yellow dal.


  • You can fry the paneer as well to make it crispier.
  • Can you make this vegan? Yes. Use extra-firm tofu, potatoes, cauliflower, mushrooms, or soya chunks instead.
  • Also for the marinade, you can use dairy-free plain yoghurt. If using mushrooms, no need to marinate it. Just mix it in the yoghurt mixture and fry.
  • Instead of frying the tofu in ghee, use coconut or vegetable oil instead.
  • Can you freeze this? While this prepared Kadai Paneer Curry stays good in the fridge for 2-3 days, you can freeze it as well. 
Keyword cottage cheese with capsicum, Cottage Cheese with Capsicum Recipe, Kadai Paneer, Kadai Paneer Recipe