Paneer Capsicum Masala is made by cooking paneer and capsicum in a rich and creamy onion tomato gravy. Its thick creamy texture comes from the addition of malai or whipping cream.
This is a quick and easy paneer recipes, and is my default go to dish whenever I want to make a paneer curry in a hurry.
The dish gets a spicy & tangy taste from the addition of tomatoes and various Indian spices. Capsicum & onion give a the required bite and sharpness to the dish.
You can add any other vegetables that you want to this dish as well. Some veggies that go well with in this curry are carrots, beans, potatoes, peas etc.
To make Paneer Capsicum Masala at home take a look at the video or follow the step by step recipe with photos posted below.
See more related recipes like:
- Kadai Paneer Gravy – gravy version of kadai paneer
- Dry Kadai Paneer – dry version of kadai paneer
- Paneer Tikka Masala – marinated & grilled paneer in gravy
- Paneer Butter Masala – paneer cooked in rich buttery gravy
- Matar Paneer – peas & paneer curry
- Paneer Makhani – paneer cooked in buttery tomato gravy
- Methi Malai Paneer – fenugreek & paneer curry
- Palak Paneer – paneer in spinach curry
Suggested recipe collections :
- Paneer Recipes | 25 Easy Indian Paneer Recipes
- Indian Curry Recipes | List of 36 Indian Vegetarian Gravies
- Indian Sabzi Recipes | 20 Dry Vegetables | Sookhi Sabji

Paneer Capsicum Masala Recipe
Recipe Info
Nutrition
Video
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Ingredients For Paneer Capsicum Masala Recipe
- 250 gm Paneer
- 1 Medium Sized Onion
- 1 Small Green Capsicum (Bell Pepper / Shimla Mirch)
- 2 Tomatoes
- 1/4 Cup Malai (Whipping Cream)
- 1 Teaspoon Cumin Seeds (Jeera)
- 1.5 Teaspoon Coriander Powder (Dhaniya Powder)
- 1 Teaspoon Turmeric Powder (Haldi)
- 1 Teaspoon Red Chilli Powder
- 1 Teaspoon Salt or to taste
- 2 Tablespoons Cooking Oil
Step By Step Instructions for Paneer Capsicum Masala Recipe
- Gather all the ingredients. Dice the onions & capsicum and make a puree of the tomatoes. Dice the paneer into small cubes.250 gm Paneer, 1 Medium Sized Onion, 1 Small Green Capsicum (Bell Pepper / Shimla Mirch), 2 Tomatoes
- Heat oil in a pan and add cumin seeds. Wait till the cumin seeds start to crackle.1 Teaspoon Cumin Seeds (Jeera)
- Add chopped onions and cook them for 1-2 minutes till they become soft and golden brown.
- Then add the diced capsicum to the pan.
- Next add pureed tomatoes and cook the gravy for 3-4 minutes.
- When the vegetables are cooked, add turmeric powder, coriander powder, red chilli powder and salt.1.5 Teaspoon Coriander Powder (Dhaniya Powder), 1 Teaspoon Turmeric Powder (Haldi), 1 Teaspoon Red Chilli Powder, 1 Teaspoon Salt
- Mix all the spices and cook for a few minutes.
- Add malai or whipping cream to the gravy. You can also substitute malai with milk if it is not readily available at your home. Curd can also be used in its place.1/4 Cup Malai (Whipping Cream)
- Stir to mix and bring the gravy to a boil. You can also add some water to adjust the consistency.
- Add the paneer cubes to the gravy.
- Mix the paneer with the gravy. Cover the pan with a lid to cook the paneer.
- Cook for 5 minutes or till the paneer cubes are softened, stirring occasionally.
- Paneer Capsicum Masala is ready. Serve it hot with roti, paratha or rice.
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