Step-by-Step Instructions

1. 1.Marinate Paneer

   Place 400 gms of paneer cubes in a bowl. Add 1 tsp salt, 1/2 tsp turmeric powder, 1 tsp Kashmiri red chilli powder, and 1 tsp kasuri methi. Mix everything well, preferably using your hands, to ensure the paneer pieces are well coated with the spice mix. Let it sit for about 10 minutes.

2. 2.Prepare Curd Mixture

   In a separate bowl, take 500 gms of thick fresh curd. Add 1/4 tsp turmeric powder, 2 tsp Kashmiri red chilli powder, 1 tsp cumin powder, 2 tsp coriander powder, 1 tsp garam masala powder, and 1 tsp salt. Whisk everything well until the spice mix is thoroughly combined with the curd and the mixture is 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, turning occasionally, until all sides are lightly coated and toasted. Do not over-roast until golden brown. Once done, remove the paneer from the pan and keep it aside.

4. 4.Sauté Aromatics

   Heat 3 tbsp of oil in a wide kadai. Once the oil is hot, add 1 tsp of cumin seeds and 2 bay leaves. Roast them briefly until fragrant. Add 2 finely chopped large onions and sauté until they turn a nice golden brown color.

5. 5.Add Ginger-Garlic Paste

   Once the onions are golden brown, add 1 heaped tsp of fresh garlic paste and 1 heaped tsp of fresh ginger paste. Mix everything well. Maintain low heat and sauté until the raw smell of ginger and garlic has gone.

6. 6.Incorporate Curd Mixture

   Turn off the stove. Add the prepared curd mixture to the kadai. Quickly stir the curd mixture into the onion-spice base to prevent it from curdling. Turn the stove back on to low flame and continue stirring the curd mixture for about 5 minutes, heating it gradually.

7. 7.Simmer Gravy

   After 5 minutes, add 1 cup of water and mix everything well. Close the kadai with a lid and let it cook for about 5 minutes. After 5 minutes, remove the lid; the raw smell should have gone and the oil should have separated beautifully.

8. 8.Add Cashew Paste and Paneer

   Add 1/2 cup of diluted cashew paste (made from grinding about 25 cashews to a fine paste) to the gravy. This will give a richer and creamier texture. 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.

9. 9.Final Simmer and Garnish

   Add 2 slit green chillies and mix well. Close the kadai with a lid and let it cook for about 2 to 3 minutes on medium flame. After 3 minutes, remove the lid; the gravy should have come together beautifully and the oil separated. Finish off by adding some crushed kasuri methi leaves and finely chopped fresh coriander leaves. Mix gently.

10. 10.Serve Dahi Paneer

    Your 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.