Step 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.

Step 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.

Step 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.

Step 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.

Step 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.

Step 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.

Step 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.

Step 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.

Step 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.

• Ensure the curd is thick and fresh to prevent curdling.

• Turn off the heat before adding the curd mixture to the pan to avoid curdling.

• Grate onions if you cannot chop them very finely for a smoother gravy texture.

• Adjust spice levels by increasing or decreasing green chilies and chili powder.

• For a richer flavor, you can add a touch of cream at the end.

• Substitute paneer with tofu for a vegan option, ensuring to use a plant-based yogurt.