Ingredients:

For Kadai Masala:

• 2             kashmiri red chilies
• 1 tbsp     Cumin Seeds
• 1             Green Cardamom
• 2             Cloves
• 1.5 tbsp   Black Pepper
• 1.5 tbsp   Coriander Seeds 
•  

For Kadai Paneer:

• 1 tbsp        Butter
• 2 tbsp        Oil
• 1 cup         Red onion, finely chopped
• 1 cup         Tomato, Chopped 
• 1 tsp          Ginger Garlic Paste
• 1 cup         Fresh tomato puree
• 1                Bay leaf
• 1 tsp           Kashmiri red chili powder
• 1/2 tsp        Haldi Powder
• 1 tsp           Coriander Powder
• 3/4 tsp        Salt, or to taste
• 1                 Onion, Cut into Quartes
• 1                 Tomato, Cut into Quarters
• 1 large        Green bell pepper (capsicum), cut into 1-inch pieces
• 300 grams  paneer, cubed
• 1 tsp            Kasuri methi, dried fenugreek leaves
• Fresh Coriander Leaves

Method:

Make the Kadai Masala:

1. To a small kadai or pan, dry roast the spices for kadai masala for 3 to 4 minutes on medium heat until fragrant.  Add more red chilies for a spicier masala.

2. Remove kadai from heat and transfer the roasted spices to a spice grinder.

3. Let it cool down a bit and then grind to a fine powder. Set aside. You can also make this kadai masala in advance and store it.

Make the Kadai Paneer:

1. In a large kadai or any other pan, now melt butter with 1 tbsp oil on medium heat. Add Bay leaf.

2. Add the chopped onion and saute for 3 minutes until softened. Then add the  ginger garlic paste and saute for another 1 to 2 minutes.

3. Then add the chopped tomatoes and cook for around 3 minutes until tomatoes are really soft.

4. Add the spices Haldi, Red Chilli Powder, Salt, Coriander Powder and  tomato puree. Cook for around 6 minutes until tomatoes are really soft and oil leaves the sides.

5. In an another pan take 1 tbsp of Oil.

6. Add quarted Onion, Capsicum and roast for two minutes .

7. Add Cubed Paneer and quarterd Tomato Roast till the paneer is slightly brown from all sides.

8. Add 2 tsp of prepared Kadai Masala and mix well.

9. Add roasted vegetables and paneer in gravy masala and mix well.

10. Add little water and adjust the consistency.

11. Crush kasuri methi and coriander leaves. Mix again .

12. Serve kadai paneer with naan or paratha.