Paneer Capsicum Masala | Masala Curry Blended with Paneer and Capsicum

Paneer Capsicum Masala is a vibrant, restaurant-style North Indian curry that brings together the creamy richness of paneer (Indian cottage cheese) with the crunchy sweetness of bell peppers in a luscious, aromatic gravy. This spicy paneer dish is a crowd-pleaser that transforms simple ingredients into an extraordinary meal bursting with flavors and colors!

This paneer capsicum gravy pairs beautifully with virtually any Indian bread or rice – from soft rotis and buttery naan to flaky parathas, whole wheat chapathi, fluffy phulkas, or fragrant jeera rice. It's a complete meal that satisfies both vegetarians and paneer lovers alike!

You may also like: Vegetable Kothu Chapathi, Onion Paratha, Pav Bhaji Recipe

Ingredients needed for making  Paneer Capsicum Masala

Paneer - 200 gms

Capsicum - 1 no.
Tomato - 2 nos
Onions - 2 nos.
Green Chillies - 1
Turmeric Powder - 1/2 tsp
Red Chilli Powder - 1 tsp
Coriander Powder - 1 tsp
Pav bhaji masala powder - 1/2 tsp (optional)
Curd - 1/2 cup
Salt as per taste

For tempering
Butter - 1 tbsp
Saunf - 1 tsp.
Cloves - 2

Method for making Paneer Capsicum Masala

1. Heat oil in a pan, fry the saunf, cloves and curry leaves  and then add the finely chopped onions and green chillies and saute well till it becomes transparent.

2. Grind the chopped tomatoes and add to the above and saute well. 

3. Next add the finely chopped Capsicum and mix well.

4. Next add the turmeric powder, red chilli powder, coriander powder, pav bhaji masala and curd, mix well and cook in a low flame for 3 minutes and then add little water. Allow this to boil for 10 minutes in medium flame.

5. Fry the paneer cubes in butter and then add this to the above mixture. You can add fresh cream on top to make it more richer and delicious.

Serve hot with Rotis, Chapathis, Paratha, or anything of your choice.

Click the link to view more paneer recipes