Step 1

To a small grinder jar, add red chilies, fennel seeds (optional) and coriander seeds. Make a fine powder and keep aside.

Step 2

Heat ½ tablespoon oil in a pan. Add 1 cup chopped onions & 8 cashew nuts. Saute them on a medium high flame until the onions turn transparent or pink.

Step 3

Add 1 cup chopped tomatoes and saute until completely mushy.

Step 4

Cool this completely and add to a blender jar. Blend to a smooth paste or puree. Set this aside.

Step 5

To the same pan, add ½ tablespoon oil and heat it.

Step 6

Saute 1 cubed onion and capsicum on the highest flame until half done. They must be slightly tender and yet crunchy.

Step 7

Add paneer and toss for 1 to 2 mins. Set all these aside. Do not over fry these.

Step 8

Heat 1 tbsp oil and saute 1 tsp ginger garlic paste until the raw smell goes off.

Step 9

Next transfer the ground kadai masala and saute for 2 to 3 mins until it turns fragrant. Ensure the raw flavor has gone from the masala.

Step 10

Add the ground onion tomato paste and saute for 2 mins.

Step 11

Next add garam masala and red chili powder. Saute for another 2 mins until the masala turns fragrant.

Step 12

Pour ¾ cup water and salt. Allow it to boil until the gravy thickens and traces of oil appear on top.

Step 13

Then crush and add kasuri methi. Stir well again. Taste the gravy and add more salt as needed.

Step 14

Add the sauteed paneer, capsicum and onion.

Step 15

Stir well & finally add ginger juliennes and coriander leaves.

Step 16

Cover and rest for 2 mins. Transfer to a serving bowl and rest for at least 15 mins for the paneer to absorb the flavors.

Step 17

Enjoy kadai paneer gravy with roti, butter naan, paratha or jeera rice.