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Paneer capsicum masala in a bowl with tomato gravy, paneer cubes and bell peppers on dark marble

Paneer Capsicum Masala Recipe (Easy Weeknight Curry)

Paneer capsicum masala with jammy onion-tomato gravy, seared paneer, and chunky bell peppers. A colourful North Indian vegetarian main in about 35 to 40 minutes, naturally gluten-free.
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Prep Time 15 minutes
Cook Time 25 minutes
Total Time 40 minutes
Course Dinner
Servings 4
Calories

Equipment

  • Wide skillet, kadai, or sauté pan (10 to 12 inch)
  • Instant Pot (optional, for shortcut method in post)

Ingredients
  

For the paneer and capsicum

  • 350 to 400 g paneer cut into 1-inch cubes
  • 2 medium bell peppers about 350 g total; preferably 1 green and 1 red, seeded and cut in large chunks or thick strips
  • 2 tbsp neutral oil or ghee plus more as needed for searing

For the masala base

  • 2 medium onions about 200 to 250 g; finely chopped
  • 3 medium ripe tomatoes about 400 g; finely chopped, or 400 g canned crushed tomatoes
  • 1 tbsp ginger-garlic paste or 4 cloves garlic minced plus 1 inch ginger, grated
  • 1 tsp cumin seeds
  • 1/4 tsp turmeric powder
  • 1 1/2 tsp coriander powder
  • 1 tsp Kashmiri red chili powder or to taste
  • Salt to taste
  • 1/2 to 1 cup water or light vegetable stock

To finish

  • 1/2 to 1 tsp garam masala
  • 1 tsp kasuri methi dried fenugreek leaves; optional; lightly crushed
  • 3 tbsp fresh cilantro chopped

Instructions
 

Sear paneer and capsicum

  • If paneer was packed in water, drain, pat very dry with a kitchen towel.
  • Heat a wide skillet over medium-high with a thin film of oil. Sear paneer in a single layer until golden on at least two sides, flipping gently. Transfer to a plate.
  • In the same pan, toss capsicum with a pinch of salt until edges char slightly and peppers smell sweet, 3 to 4 minutes. Remove and set aside.

Build the onion-tomato masala

  • Reduce heat to medium. Add a little more oil if the pan is dry. Add cumin seeds and let splutter.
  • Add onions with a pinch of salt. Cook until soft and golden at the edges, stirring often. Add ginger-garlic paste and cook until the raw smell fades, about 1 minute.
  • Add tomatoes, turmeric, coriander powder, and red chili powder. Cook until tomatoes collapse and oil begins to separate at the edges. If it sticks, splash in a little water and scrape up the browned bits.

Simmer and combine

  • Add 1/2 to 1 cup water or stock depending on how saucy you want the curry. Simmer 8 to 10 minutes until the gravy looks cohesive.
  • Return capsicum to the pan and simmer 3 to 4 minutes. Nestle paneer back in, spoon gravy over, cover, and simmer gently 3 to 5 minutes until heated through.
  • Stir in garam masala and kasuri methi (if using). Taste and adjust salt. Off heat, stir in yogurt or cream if using. Finish with cilantro and optional lemon.

Serve

  • Serve hot with jeera rice, roti, or thepla, and raita if you like.

Notes

Frozen paneer: thaw completely, soak in warm water 10 to 15 minutes, drain, pat very dry, then sear as above.
Rubbery paneer fix: after searing, soak cubes in warm salted water 10 minutes, drain, then add to the gravy.
Make-ahead: cook through the masala base (before returning paneer), cool, and refrigerate up to 2 days. Reheat gently, then finish Step 3 so paneer does not sit in hot gravy for hours.
Storage: refrigerate in an airtight container up to 3 days. Freezing is possible but texture of paneer may change slightly.
Vegan: use extra-firm pressed tofu or mushrooms instead of paneer; use oil; skip dairy finishes or use coconut cream sparingly.
Tried this recipe?Let us know how it was!
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