Paneer Capsicum Curry Masala is a delightful North Indian dish featuring soft paneer cubes and crisp capsicum simmered in a luxuriously creamy and aromatic sauce. This recipe stands out for its simplicity yet delivers restaurant-quality flavors, making it perfect for both busy weeknights and special family dinners. The subtle sweetness of paneer blends beautifully with the slightly smoky and sweet capsicum, all bathed in a richly spiced tomato and cashew base. The best part? This curry comes together in under 40 minutes and pairs brilliantly with soft rotis, naan, or even steamed rice.
Despite its easy preparation, Paneer Capsicum Curry Masala is anything but ordinary. Each ingredient, from the homemade paneer to the aromatic mix of whole spices, plays its part in building depth and warmth. The final touch of cream and a hint of kasuri methi elevates the dish with a touch of restaurant-style indulgence. For those looking to bring more variety to their paneer repertoire, this curry serves as an ideal starting point, offering versatility and plenty of room for variation. Enjoy a comforting, creamy curry that suits everyday meals yet feels celebratory in every bite.
Paneer Capsicum Curry Masala
Print RecipeIngredients
- ½ tsp cumin/jeera
- 1 tsp coriander seeds
- ½ tsp pepper
- ½ tsp fennel/saunf
- 1 tbsp butter
- 15 paneer/cottage cheese cubes
- 10 capsicum cubes
- 1 tsp cumin/jeera
- 1 bay leaf/tej patta
- 4 cloves/lavang
- 1 inch cinnamon stick
- 3 cardamom pods/elachi
- 1 tsp kasuri methi
- 1 onion, finely chopped
- 2 tbsp mint/pudina, chopped
- 1 tsp ginger garlic paste
- 4 tbsp coriander leaves, chopped
- ¼ tsp turmeric/haldi
- ¾ tsp Kashmiri red chilli powder
- ¾ tsp salt
- 1 tomato, finely chopped
- 2 tbsp curd/yogurt, whisked
- 2 tbsp cashew paste
- 1 cup water
- 2 tbsp cream
- ¼ tsp garam masala
Instructions
Heat butter in a large kadai and add cumin, coriander seeds, pepper, and fennel for a quick temper.
Toss in bay leaf, cloves, cinnamon, and cardamom. Sauté until fragrant.
Add onions, ginger garlic paste, mint, and coriander leaves. Sauté until onions are golden.
Mix in turmeric, Kashmiri red chilli powder, and salt; cook until aromatic.
Add chopped tomato and cook till soft and mushy.
Stir in whisked curd and cashew paste; cook until the mixture releases oil.
Pour in water to adjust the consistency of the gravy.
Add paneer and capsicum cubes. Mix gently to avoid breaking the paneer.
Stir in cream, sprinkle kasuri methi and garam masala. Cover and simmer for 5 minutes before serving.
Notes
Tips:
Use freshly made paneer for the softest texture—store-bought works if it's moist and fresh., Customize the curry by adding vegetables like peas, broccoli, carrots, or potatoes., For a dry version, reduce onions and tomatoes significantly., Kasuri methi lends a unique North Indian aroma—don't skip it for authenticity., Finish with a splash of cream for a luscious, restaurant-style consistency.