Step-by-Step Instructions

1. 1.Marinate Paneer

   Place 400 gms of fresh paneer cubes in a bowl. Add 1 tsp salt, 1/2 tsp turmeric powder, 1 tsp Kashmiri red chili powder, and 1 tsp Kasuri methi. Mix everything well to coat the paneer pieces with the spice mix. Let it sit for about 10 minutes.

2. 2.Prepare Curd Mixture

   In a separate bowl, add 500 gms of thick fresh curd. Add 1/4 tsp turmeric powder, 2 tsp Kashmiri red chili powder, 1 tsp cumin powder, 2 tsp coriander powder, 1 tsp garam masala powder, and 1 tsp salt. Use a whisk to combine all the spice mixes well with the curd until smooth.

3. 3.Roast Paneer

   Heat 2 tsp of ghee (or oil) in a pan. Gently drop the marinated paneer pieces into the pan. Roast the paneer on medium flame, ensuring all sides are beautifully coated and lightly toasted. Do not over-roast until golden brown. Once done, remove from the pan and keep aside.

4. 4.Sauté Onions and Ginger-Garlic

   In a wide kadai, heat 3 tbsp of oil. Once hot, add 1 tsp cumin seeds and 2 small bay leaves. Roast them briefly. Add 2 finely chopped large onions (or grated onions for a smoother texture). Sauté the onions until they turn a nice golden brown color. Add 1 heaped tsp of fresh garlic paste and 1 heaped tsp of fresh ginger paste. Mix everything well and maintain the heat on low until the raw smell of ginger-garlic paste has gone.

5. 5.Add Curd Mixture

   Turn off the stove at this point. Quickly stir in the prepared curd mixture into the kadai, mixing it well with the sautéed onions and ginger-garlic to prevent curdling.

6. 6.Cook Gravy

   Turn the stove back on and keep the flame on low. Keep stirring the curd mixture on low flame for about 5 minutes, heating it gradually. After 5 minutes, add about 1 cup of water and mix everything well. Close the kadai with a lid and let it cook for about 5 minutes.

7. 7.Add Cashew Paste and Paneer

   After 5 minutes, the raw smell should be gone and the oil will have separated. To make the gravy richer and creamier, add about 1/2 cup of diluted cashew paste (made from about 25 cashews). Once the gravy comes to a nice boil, gently slide in the roasted paneer pieces. Check for seasoning and add a little salt if needed.

8. 8.Final Simmer and Garnish

   Add 2 slit green chilies and mix everything well. Close the kadai and let it cook for about 2 to 3 minutes on medium flame. After 3 minutes, the gravy will have come together beautifully and the oil will have separated. Finally, finish off by adding some crushed Kasuri methi leaves and finely chopped fresh coriander leaves. Mix gently.

9. 9.Serve Dahi Paneer

   The incredibly delicious, rich, and creamy Dahi Paneer gravy is ready to be served. Enjoy it with any roti of your choice or with mild pulao.