This is a very famous restaurant Punjabi recipe for naans and parotas. When you have friends gathering for parties mark this for sure, every one would like it. Store bought paneer can also be used, since paneer preparation is easy I prepared it at home and given the procedure below. Do not waste the leftover water drained from milk while making paneer, it can be used for kneading chapati or paratha dough. It makes them soft.

Kadai Paneer

Kadai Paneer
Prep time
Cook time
Total time
Serves: 2
  • Paneer - 15 - 20 cubes
  • Big Onion - 2 ( Large)
  • Capsicum / Bell Pepper - 1
  • Red Chili - 5
  • Green Chili - 4
  • Sugar - 1 stsp
  • Ginger - small piece
  • Garlic - 7 nos
  • Tomato - 5
  • Coriander Powder - 1 tsp
  • Garam Masala - ½ tsp
  • Butter - 4 tbsp
  • Paneer Ingredients :
  • Milk - 1 liter
  • Lemon - ½ tsp
  • Curd - 2 tbsp
To Prepare Paneer :
  1. Take the Milk in a vessel or a heavy bottom pan. Bring it to boil, add lemon squeeze or add curd. Stir continuously, milk starts to form a white precipitate. After all the milk curdles take away from stove. We can see the curdled milk floating in the water. Filter the water in a food strainer by placing a cloth or kitchen tissue at the bottom, squeez the excess water by pressing in hands or spatula.
  2. Spread them in a little curved plate of half inch to one inch thickness by shaping them into Rectangular block. Cover the flat plate with another flat plate on top. Place a heavy weight on the top plate to give a pressure to form the paneer.
  3. After 30 min, we can see the excess water being floating around and the milk curdled formed into a white cake. Cut them into small square pieces. In an another pan pour oil - 5 tbsp and fry the cut pieces. Do not over fry, keep them soft.
To prepare Kadai Paneer Gravy :
  1. Cut onion and Capsicum. Grind Garlic, Ginger, Green Chili, Red Chili and tomato in to a fine paste.
  2. In a pan heat butter - 2tbsp, When hot add onion, capsicum and fry till the onion turns golden brown. Add Coriander powder, Garam Masala and fry for 2 min. Keep this separately.
  3. In an another pan heat remaining butter, when hot add ground tomato paste, salt and sugar. Fry this till the oil separates from the mixture. Add fried paneer and onion. Cook this for 3 to 5 min in a slow flame till everything is mixed together.
  1. Don't throw the water drained from paneer, use it while kneading dough for Chapathi.

(*) This goes good with Nan, Roti, Chapathi. Recipe from Mallika Badrinath’s book.