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4.25 from 24 votes

Pepper Paneer in Yogurt Gravy

A yogurt based easy to prepare paneer in gravy recipe which is way different yet as delicious as the classic paneer tikka masala!
Prep Time10 mins
Cook Time20 mins
Total Time30 mins
Course: lunch/ dinner
Cuisine: Indian
Servings: 6
Calories: 329kcal
Author: Khushboo


For grinding into paste

  • 2 cups onions roughly chopped
  • 4 cloves garlic
  • 1 ” knob ginger chopped
  • 1 green chili deseeded *
  • 3 tablespoon raw cashews
  • ¼ cup water

For tempering

  • 2 tablespoon mustard oil / sarsoon tel cooking oil of your choice
  • Pinch of asofoiteida / hing
  • 1 teaspoon mustard seeds
  • 1 bay leaf
  • ½ teaspoon turmeric
  • 1 teaspoon coriander powder
  • 1 teaspoon amchoor powder/ mango powder*
  • 1 teaspoon garam masala
  • 1 teaspoon sugar
  • 2 teaspoon kasoori methi
  • ½ teaspoon black pepper
  • Salt to taste
  • ¼ cup yogurt/ curd
  • 2 teaspoon roasted besan / chickpea flour
  • cups or more water

Saute the veggies and paneer separately

  • 1 tablespoon oil
  • 1 cup Onions cubed
  • 2 cups Bell pepper cubed
  • 2 cups Paneer cubed
  • Pinch of turmeric
  • Salt to taste

Garnish (optional)

  • Fistful of cilantro chopped
  • Cherry Tomatoes
  • Freshly squeezed lemon


  • Grind all the ingredients called for making a paste.
  • Heat oil in a pan.
  • Once warm add in the mustard seeds and bay leaf, hing.
  • When the seeds start spluttering add in the prepared paste .
  • Be careful as the mixture might splutter.
  • Add in the turmeric, coriander powder, garam masala , pepper and some salt.
  • Add in ¼ cup water for cooking.
  • Cover and let the mixture cook for 4-5 minutes stirring occasionally .
  • In the meantime whisk besan into yogurt until lumpfree.
  • Add this mixture to the pan stirring continuously until the gravy is blended .
  • Add in more salt if necessary, kasoori methi, amchoor powder, sugar and remaining 1 1/2  cups water.
  • Let the gravy cook on low for 5-8 minutes.
  • In another non stick pan heat some oil on medium.
  • Add in Bell Peppers and onions , cook it for 2 minutes.
  • Now add in the paneer and increase the flame to HIGH.
  • Sprinkle some salt and pinch of turmeric.
  • Cook it for 1 minute tossing mid way or until the paneer is light golden brown.
  • The veggies should have a crunch and not very soft so adjust cooking time accordingly.
  • Add the veggies and paneer to the gravy and mix it well.
  • Let it simmer for 2-3 minutes and switch off the flame.
  • Taste test and adjust any seasoning if needed.
  • Just before serving top it with some cilantro and cherry tomatoes and some lemon juice.
  • Serve warm with phulakas, naan or rice.


Spice level of this recipe is 3 on 5 , 5 being hot! So adjust spices to your taste accordingly.
Roasting besan is optional, gives an earthy taste. You may choose not to roast.
The gravy will thicken more as it cools.
Add more water if necessary.
Substitute amchoor with lemon juice.


Calories: 329kcal | Carbohydrates: 15g | Protein: 13g | Fat: 24g | Saturated Fat: 12g | Cholesterol: 50mg | Sodium: 30mg | Potassium: 278mg | Fiber: 2g | Sugar: 6g | Vitamin A: 1565IU | Vitamin C: 70mg | Calcium: 400mg | Iron: 0.9mg