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Paneer Capsicum Masala Recipe

Paneer Capsicum Masala is a popular Indian Side Dish
Author :
On :
Monday, 27 June, 2016
Category :
Family Friendly Recipe
Course :
Side Dish Recipe
Cuisine :
Indian Recipe
Technique :
Stewed Recipe
Difficulty :
Servings :
Serves 2
Rated 3.5 based on 100 votes

Paneer capsicum masala is a palate pleasing comfort food making it a family friendly recipe. The Indian vegetarian dish is loved paneer lovers and is made easily by stewing paneer cubes in spicy gravy.

The recipe is most popularly relished as side dish throughout the country. The best accompaniments for the recipe are butter naan and paranthas. The paneer cubes are coated with masala made up of onion and tomato gravy along with many flavorful spices and herbs, kasoori methi being one of them.

The thick gravy makes for a delicious blend along with capsicum. Learn how to make it by following our step by step recipe.


  • Capsicum - 2 big ones, cut lengthwise
  • Paneer cubes - 100 g
  • Onion - 1 big one, finely chopped
  • Tomatoes - 2 medium, finely chopped
  • Ginger-garlic paste - 1.5 tsp
  • Tomato paste - 1 tsp or Tomato puree - 2 tbsp
  • Cashews - 2 tsp
  • Milk - 2 tbsp
  • Cream - 1 tbsp
  • Dhania-Jeera powder - 1.5 tsp
  • Red Chilli powder - 1 tsp
  • Turmeric powder - 1 tsp
  • Kasuri Methi - 1/2 tsp
  • finely chopped Coriander leaves - 2 tsp
  • Butter - 1 tbsp
  • Salt - to taste
  • How to Make Paneer Capsicum Masala:

    1. Take a heavy-bottom vessel and add butter to it. When butter heats up, add turmeric powder.
    2. Now, add ginger-garlic paste and onions and fry till onions are slightly brown in colour.
    3. Then, add finely chopped tomato and fry for a minute.
    4. Make a fine paste of cashews and milk by grinding it in a mixie.
    5. Now, add the tomato paste, cashew paste, red chilli powder and dhania-jeera powder and fry for a minute.
    6. Let this mixture cool for about 10 minutes and then grind it in a mixie to a fine paste (this paste will be nice orange in colour).
    7. Take a vessel and heat butter.
    8. To this, add capsicum and fry for about 5 minutes.
    9. Then, add the fine paste.
    10. Let it boil for a few minutes.
    11. In another tawa, heat some butter and shallow-fry paneer cubes.
    12. Add this to the above mixture and fry for a few minutes.
    13. Now, add kasuri methi and fry for a few more minutes.
    14. Add beaten cream to this mixture and garnish it with finely chopped coriander leaves.
    15. Serve hot with rotis, naans and parathas.


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