Paneer Handi Masala is a deliciously rich, mouth-watering recipe of Indian cuisine. The recipe is made with the puree of cashew nuts, onions, and tomatoes as a base.


Paneer handi Masala is an easy recipe. However, you can give your twist to the recipe too. For example, you can add milk powder or cream to make the gravy more rich and thick.  It will create a restaurant-like experience for you.

Handi is a pot that people use for Indian cooking that is wide at the bottom and a bit deep. But you can cook it in a pan or a wok if you don’t have a handi. Interestingly, the name of the paneer recipe changes with changing the vessel you cook it in.

You can eat this dish at both lunch and dinner as well. It is a versatile dish that we can enjoy with tandoori roti, naan, paratha, or cumin rice or basmati.

Ingredients For Paneer Handi

We are dividing the list of ingredients into two parts. One will be the puree, and the other will be the gravy part. Let’s have a look.

For Puree

  • Edible Oil – This is to saute the ingredients so you will not need them too much. Any type of oil will be okay to use.
  • Cashews Nuts – It will provide thickness and smooth texture to the gravy. Also, it will add a natural sweetness to the gravy.
  • Ginger & Garlic – We always include in the base of a gravy. You need not dice or mince them as they are to be blended anyway.
  • Onion & Tomato – Both of these ingredients will make the base as well. They also provide the flavours and thickness to the gravy.

For Gravy

  • Oil – This will be used for both frying the paneer and cooking the gravy. So we need more than the above stage.
  • Paneer – Of course, it is the star ingredient for the recipe. There are different types of paneer available. Any style is okay, but plain and smooth ones are preferable.
  • Capsicum – This ingredient not only increases the flavour but also adds some nutrition as well. Moreover, it also makes the dish looks tempting.
  • Spices – Apart from salt, turmeric powder, red chilli powder, garam masala, and coriander-cumin powder is added to get the flavours. You can also add readymade spice mix powders available in the market.
  • Lemon Juice – A little bit of tanginess for the dish! Vinegar can be a substitute, but lemon juice is better to use. Also, vinegar might make the paneer stiff.
  • Kasuri Methi – It is perfect for some aroma and excellent flavour addition.
  • Coriander – An Indian recipe is incomplete without this culinary herb. It makes the dish appealing and also aromatic.

Preparing Paneer Handi

We are making this recipe is not so complicated at all, even if it seems like it. To make this easier, we’ll again divide the steps into two-phase.

Preparing Puree

For this, we’ll be heating oil in a pan. Then add whole garlic, ginger pieces, and cashews to let them fry. Their aroma and colour will change a bit.

After this comes onion and tomato, we will be sauteeing them till they turn brown. It will remove the rawness.

Once this is done, we will be making a puree of all the sauteed ingredients. Keep this aside for later.

Preparing Gravy

Cut the paneer into pieces. Any shape will do. The same goes for capsicum.

Again heat oil in the pan. Then we need to fry them till they get soft. Remove them then.

Now we’ll add Kasuri methi and onion. They, too, will be fried till they turn brown. Then fry capsicum pieces for 30-40 seconds. Keep the flame low, or it will get burn.

Then Add coriander-cumin powder, turmeric powder, red chilli powder, garam masala powder, and salt. Mix everything properly.

After that, add the puree and stir. Lastly, add the paneer and mix again. Now we need to add water and let it cook for a minute. Cook for some time more if you think the gravy is not thick enough.

Finally, add lemon juice and chopped coriander. The dish is ready to serve.

Tips For Paneer Handi:

  • Use Kashmiri red chilli powder or edible red colour to get an eye-catching red colour.
  • You can add a little bit of gram flour as well to thicken the gravy. Cook it properly to eliminate the rawness.
  • If you like, add cream to make it richer. Or you can add a bit of curd as well. Keep a check on the water, then.
Also Read:
Restaurant-style matar paneer is easy to make at home. The secret lies in the gravy. Learn to make perfect gravy for the matar paneer recipe.
Paneer Bhurji is a delicious North Indian recipe. It consists of grated paneer and is spicy in taste. The dish is quick to make & less fussy.
Paneer Burger is a unique and delicious burger recipe. You can say it is one of the Indian street burgers version, including paneer.
Paneer Tikka is a famous North Indian tandoor food. Here paneer is marinated in yoghurt & grilled thereafter. Click to watch the recipe video.