I already had kadai paneer in the rotation that week. I wanted the same red-pepper sweetness, but in a gravy I could scoop with naan, not a wok full of pepper pieces. I charred two peppers on the gas flame until the skin blistered, peeled them at the sink, and blended them with yogurt and a handful of paneer.
Paneer in roasted red pepper gravy (also searched as roasted red pepper paneer) is that bowl. Soft cubes in a smoky, deep-orange puree. No onion. No tomato paste. The color comes from the peppers and Kashmiri chili. It is a weeknight red pepper paneer curry, and it is not another makhani.
If paneer butter masala is on repeat, this is the swap. Let’s make it together.

What is roasted red pepper paneer gravy?
This is a home-kitchen gravy, not a hotel menu name. You roast lal shimla mirch (red bell pepper) until the skin blackens and the flesh turns sweet, then blend it and simmer paneer in it. The smoke is the point. The peppers should disappear into the sauce, not sit in chunks.
It sits next to North Indian paneer curries, but it is not kadai and it is not capsicum masala. Those keep the peppers in pieces. Roasted red pepper paneer pasta uses a similar puree on spaghetti. This roasted red pepper paneer recipe is the roti-and-rice plate. Roasted red pepper makhani, which you will also see online, is a tomato-butter cousin. This gravy skips tomato so the char can show.
Roasted pepper gravy vs kadai vs capsicum masala vs butter paneer
- Kadai paneer: chunky peppers, fresh kadai masala, onion-tomato. Wok dinner.
- Paneer capsicum masala: weeknight onion-tomato, snappy pepper pieces. The dish people mean by shimla mirch paneer.
- Butter paneer / makhani: tomato-butter, tangy, orange. No roast-pepper smoke.
- This gravy: blended charred peppers, yogurt, and a little paneer in the blender. No onion. Scoopable.
Use kadai when you want a bite of pepper. Use this when you want the pepper in the sauce.
Why you’ll love this
- Deep orange gravy from peppers, not a can of tomato
- No onion, so it is faster and Jain-friendly if you skip the garlic
- High-protein vegetarian dinner in about 30 minutes
- Naturally gluten-free
- Jarred roasted peppers work when you do not want to stand at the flame
- Gravy can sit in the fridge. Paneer goes in at the end
Paneer brings the protein. The peppers bring the sweetness and the smoke. That pairing is why this holds as a main, not a side.
Test note: The first batch, I left too much black skin on the peppers. The gravy went khaki and tasted like ash. Next time I peeled until the flesh was bright red, even if a few stubborn bits took an extra rinse. The color came back and the smoke stayed sweet, not burnt. I also tried a jar without draining. The gravy tasted pickled and would not thicken. Pat those peppers dry until they feel almost tacky.
Ingredient notes
Red bell peppers. Two medium peppers, about 1 pound before roasting. They should collapse and blister. Green peppers stay grassy here. Red and orange together is fine.
Jarred roasted red peppers. One and a half cups, drained, then patted very dry. If the jar tastes flat, add 1/4 teaspoon smoked paprika with the Kashmiri chili. Do not pour in the brine.
Yogurt. Full-fat, or Greek yogurt. It stands in for the onion body. Low-fat yogurt makes the paste thin and sharp. The same yogurt-and-pepper pairing, cold, is roasted red pepper yogurt sauce when I want a dressing instead of a gravy.
Paneer in the blender. A quarter cup (about 2 ounces) blended with the peppers is what makes this silky without cream. The rest of the block stays in cubes.
Kashmiri red chili. Color and a gentle warmth. Regular hot chili powder spikes the heat before the peppers show.
Garlic. Four cloves. The paste cooks 6 to 8 minutes, so the edge softens. Skip it for a Jain plate and bloom hing instead.
No onion, no tomato. Onion would make this a standard masala. Tomato would pull it toward makhani.
How to roast and peel the peppers
Gas flame is the method I use most. Set the peppers on a burner over medium-high and turn with tongs until the skin is blistered and black in patches and the flesh feels soft, 8 to 10 minutes. Drop them in a bowl, cover 5 minutes, then peel.
A broiler works if you do not have a gas stove. Put the peppers on a foil-lined tray, close to the heat, and turn until charred, 12 to 15 minutes. An air fryer at 400°F / 200°C for 12 to 14 minutes, turning once, also gets you there.
Peel under a thin stream of water only if the skin sticks. Do not rinse the flesh into blandness. Pull out the stem, seeds, and white ribs. You want bright red pieces, not a bowl of black flakes.
Perfect for
- A weeknight thali with instant pot jeera rice and roti
- A mixed paneer night when kadai already covers the chunky-pepper plate
- Company dinner with naan and cucumber raita
- Making the gravy on Sunday, adding paneer when you reheat


Paneer in Roasted Red Pepper Gravy
Equipment
- Tongs
- Blender
- Heavy-bottomed pan or kadhai
Ingredients
For the roasted pepper paste
- 2 medium red bell peppers about 1 lb / 450 g
- 4 garlic cloves
- 1/4 cup paneer about 2 oz / 55 g, cubed
- 1/3 cup full-fat yogurt or Greek yogurt
- 1 tablespoon Kashmiri red chili powder
- 1/4 cup water for blending, plus more as needed
For the paneer
- 10 oz paneer about 280 g, cut into 3/4-inch cubes
- 1 teaspoon ghee or oil for a light sear, optional
For the gravy
- 1 tablespoon ghee or butter
- 1/2 teaspoon cumin seeds
- 3/4 teaspoon salt or to taste
- 1 teaspoon kasuri methi crushed
- 1/4 teaspoon garam masala
- 1/2-3/4 cup hot water
- 1 tablespoon heavy cream optional
To finish
- fresh cilantro chopped
- pinch crushed kasuri methi or a small cream swirl
Instructions
Prep
- If the paneer is packaged, soak the cubes in warm water for 15 to 20 minutes. Drain and pat dry. Set aside 1/4 cup for the blender.
- Char the peppers on a gas flame, turning with tongs, until the skin blisters and the flesh softens, 8 to 10 minutes. Or broil or air-fry as in the post.
- Cover the hot peppers 5 minutes. Peel, seed, and discard the ribs. You should have about 1 1/2 cups bright red flesh.
Make the paste
- Blend the peeled peppers, garlic, 1/4 cup paneer, yogurt, Kashmiri chili, and 1/4 cup water until completely smooth. The paste should look deep orange-red and pour like a thick chutney. If it is chunky, blend another 20 seconds.
Optional paneer sear
- Heat 1 teaspoon ghee in the kadhai over medium-high. Sear the remaining paneer 1 to 2 minutes until the edges take a little color. Lift out and set aside. Skip this if you want the cubes fully soft.
Cook the gravy
- Heat 1 tablespoon ghee or butter in the same pan over medium. Add the cumin and let it smell fragrant, about 15 seconds.
- Add the pepper paste. Cook 6 to 8 minutes, stirring, until a few oil specks show at the edges and the color deepens. If it sticks, splash in a tablespoon of water. Do not rush this. Raw paste tastes like cold pepper dip.
- Add salt, crushed kasuri methi, and garam masala. Stir 20 seconds.
- Add 1/2 cup hot water. I swirl that water in the blender jar first so no paste is wasted. Simmer 2 to 3 minutes until the gravy coats a spoon. Add the remaining 1/4 cup water if it looks tight.
- Stir in the optional cream. Add the paneer. Simmer 2 to 3 minutes on low, just until the cubes are hot. Do not boil hard or the paneer tightens.
- Taste. Add a pinch of salt if the peppers taste shy. The gravy should be smoky and a little sweet, not sour.
Serve
- Spoon into a warm bowl. Scatter cilantro and a pinch of kasuri methi, or swirl a little cream. Serve hot.
Notes

Tips from testing
If the gravy tastes bitter, black skin got into the blender or the paste scorched. Peel more carefully, and keep the heat at medium once the paste hits the pan.
If it will not thicken, the peppers were wet. Jar brine and a heavy rinse are the usual culprits. Cook a few minutes longer, or blend in another tablespoon of paneer.
If it tastes like a cold dip, the paste needs more time. You want oil specks and a shade darker than what came out of the blender. That took me 7 minutes on medium in a wide kadhai.
What to serve with roasted red pepper paneer
Roti, paratha, or butter naan is the usual scoop. Instant pot jeera rice works if you want a bowl. I like a cold cucumber raita on the side so the Kashmiri heat has somewhere to land.
For a mixed paneer spread, keep this as the smoky red bowl and let kadai handle the chunky peppers. If you already made roasted red pepper paneer pasta this week, cook something green instead.
FAQs
Q1. Can I use jarred roasted red peppers?
Yes. Use 1 1/2 cups, drained, then patted very dry. If the jar is mild, add 1/4 teaspoon smoked paprika with the Kashmiri chili. Fresh-charred peppers taste sweeter and smokier. The jar is the Tuesday version.
Q2. Is this the same as kadai paneer?
No. Kadai keeps pepper pieces and a coarse coriander-chili masala. This roasted red pepper paneer gravy is a puree. Same ingredient family. Different plate.
Q3. Can I make this vegan?
Yes. Swap both the cubes and the blended paneer for extra-firm tofu (pat it dry, optional light sear). Use unsweetened plain plant yogurt. Blend 8 soaked cashews with the peppers if you want the gravy to stay silky.
Q4. Can I make a Jain version?
There is already no onion. Skip the garlic and bloom a pinch of hing with the cumin before you add the paste. The peppers and yogurt still carry the gravy.
Q5. How do I keep the paneer soft?
Soak packaged cubes in warm water for 15 to 20 minutes, pat dry, and add them at the end. Simmer 2 to 3 minutes on low. A hard boil tightens them.
Q6. Can I make the gravy ahead?
Yes. Cook through the water step, cool, and refrigerate up to 3 days. Reheat gently, loosen with hot water, then add paneer for the last 2 to 3 minutes.
Q7. Why did my gravy turn khaki or taste bitter?
Black skin got into the blender, or the paste scorched. Peel until the flesh is bright red, and stir the paste on medium until the fat shows. Do not walk away.
Q8. How do I store leftovers?
Store in an airtight container in the refrigerator for up to 3 days. Reheat on low with a splash of water. I do not freeze this yogurt gravy.
A smoky red bowl, no makhani required
This paneer in roasted red pepper gravy is the curry I make when I want a red plate that still tastes like the pepper, not like tomato. The bowl should look deep orange. The smoke should show up after the first bite, not as ash. When I want tomato and fenugreek instead, I make methi paneer in red gravy.
If you try this roasted red pepper paneer, tell me: did you char the peppers on the flame, or did you open a jar?
Made this? Share a photo and tag @petitepaprika on Instagram. I love seeing your kitchen creations!
