To saute and grind ( Onion – Tomato paste) :
For Kadai masala ( Key Masala )
Initial preparation  : 
  1. Cube paneer and add all the paneer cubes to hot water. Let it remain until ready to use. This gives paneer a soft melt-in-mouth texture.
  2. Dice onion, deseed capsicum, deseed tomato and dice. Heat a tsp of oil and toss on high flame for 1-2 minutes.
  3. Retain crunchiness and colour. Don’t over toss. Keep it aside to use later.
To make onion – tomato paste : 
  1. First, let’s prepare base of the curry. Add a tsp of oil and saute onion, ginger garlic and few cashews. Let it get translucent.
  2. Next, add tomatoes, salt and saute till it gets mushy. You can cover and cook for 3-4 mins.
  3. Cooldown and grind it a fine paste. Keep aside.
To make Kadai Masala:
  1. Dry roast dhania, Jeera, Red chillies, peppercorns , Bay leaf, cinnamon and elaichi until they turn slightly brown and aromatic.
  2. Cool them and grind it in mixer to a coarse powder.
  3. Our key masala, homemade Kadai masala is ready. Keep aside to use later. You can do this in bulk and store in an airtight container to use whenever required.
Now Time to assemble everything and prepare the yummy kadai masala gravy : 
  1. Add oil/ghee to the same pan. Keep flame on low and In goes green chilli, Haldi and red chilli. Quickly mix .. making sure not to burn. adding red chilli powder to hot oil gives nice good colour.
  2. Add ground onion tomato paste. I added little water to the jar to take out all the masala sticking on the jar and added to the pan. Combine everything and saute for 4-5 mins.
  3. When onion tomato masala is nicely sauted, add salt to taste, little sugar to balance taste, freshly made 2-3 tsp Kadai masala, garam masala, little crushed Kasoori Methi and cream. Mix everything and let it boil on a medium flame for 3-4 mins.
  4. After the gravy has boiled nicely, add diced paneer cubes, sauteed onion, tomato and capsicum. Mix and boil the gravy for just 2-3 mins so that they take in flavours. After adding paneer to the gravy, don’t over boil .. they become rubbery/chewy. Just 2-3 mins is enough.
  5. Lastly, garnish with chopped coriander leaves and done.
  6. Yummy kadai paneer is ready to serve . Enjoy Kadai paneer with chapati / Roti / Jeera Rice.
Recipe Notes
  1. The authentic recipe uses paneer cubes directly. However, you can Tawa fry them in oil or ghee until light brown for variation in taste.
  2. Maintain the crunchiness of diced capsicum and onion.
  3. The same recipe can be adapted to make Kadai vegetables or other Kadai recipes.