Step 1: Sauté Vegetables

Heat 2 tsp of oil in a pan. Add 1 diced onion and 1 diced capsicum. Sauté for 2 minutes until the onions become transparent. Remove from the pan and set aside.

Step 2: Fry Paneer

In the same pan, add 1 tbsp of butter. Once it melts, add 400g of paneer cubes. Fry until the paneer is golden brown on all sides. Remove from the pan and keep aside.

Step 3: Prepare Kadai Masala Powder

In a dry kadai or pan, add coriander seeds, peppercorns, cinnamon, bay leaves, cumin seeds, cloves, and dry red chilies. Dry roast on medium heat for about 2 minutes until aromatic. Let the spices cool down completely, then grind them into a fine powder.

Step 4: Prepare Gravy Base

Heat 1 1/2 tbsp of oil in the same kadai. Add garlic cloves and ginger, followed by 2 thinly sliced onions. Sauté until the onions are soft. Then, add 3 chopped tomatoes and cook for 5-8 minutes on medium flame until they turn soft and mushy.

Step 5: Grind Gravy Paste

Turn off the stove and allow the cooked onion-tomato mixture to cool down. Once cooled, transfer it to a blender and grind to a smooth, fine paste.

Step 6: Cook the Gravy

In the same kadai, heat 1 tbsp of oil and 1 tbsp of butter. Add the ground onion-tomato paste. Rinse the blender jar with a little water and add it to the kadai. Cook the paste, stirring continuously, until it thickens and the moisture evaporates.

Step 7: Add Spices to Gravy

Add 1 1/2 tbsp of the freshly prepared Kadai Masala powder, 1 tsp of Kashmiri red chili powder, and 1 tsp of salt to the paste. Mix everything well and cook for a few minutes until the masala is well-cooked and oil starts to separate from the sides.

Step 8: Combine Ingredients

Add the previously sautéed onion and capsicum to the masala paste and mix well. Pour in 1 1/2 cups of water and stir to combine, forming the gravy.

Step 9: Simmer the Gravy

Cover the kadai with a lid and let the gravy simmer on medium flame for about 10 minutes. This allows the flavors to meld and the gravy to thicken.

Step 10: Add Paneer and Finish

Uncover the kadai and add the fried paneer cubes to the gravy. Mix gently to coat the paneer. After a minute, add 1 tbsp of fresh cream and sprinkle crushed Kasuri Methi on top. Give it a final gentle mix.

Step 11: Serve

The delicious Kadai Paneer is ready. Serve hot with naan, roti, or pulao.

• Using freshly ground Kadai Masala is key to achieving the authentic flavor of the dish.

• Frying the paneer until golden brown prevents it from crumbling in the gravy and adds a nice texture.

• Do not overcook the capsicum and onions initially; they should retain a slight crunch.