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.
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.