Shahi Paneer Capsicum

Shahi Paneer Capsicum” (Cottage Cheese+Bell Peppers in thick cream sauce)


Shahi Paneer Capsicum is my ALLLL Time Fav vegetarian entree and if you have grown up in “Northern” part of India, U very well know what I’m talking about 😉

This is the BIG DADDY of vegetarian dishes from India, creamy, tasty and yes full of XTRAAA Calories. But once in a while and in moderation, it doesn’t hurt eating it :0)

The gravy/sauce in this dish is rich and thick, made using pure white butter/ fresh cheese along with the BEST EVER Pairing of paneer+capsicum

(Trust me they taste the best together than any other combo), but just to give some consolation to myself, I’m using low-fat cream cheese (As if it makes much of a difference :))

So here you go, make sure you serve it warm and it taste great with any sides of choice from Indian Naan/Roti, Bread, Rice, Quinoa, Couscous….Just about anything that you like to pair it with.

Shahi Paneer Capsicum

Serves: 4

Serving Suggestion: Can be served with Roti’s or Rice


1 Large nonstick wok with cover/lid
1 Large Serving Dish/Plate
1 Small bowl – for whisking cream


1 Cup Cottage Cheese (Paneer) – Cut into thick cubes
2 Medium Green Bell Pepper (Capsicum) – Cut into thick long slices
2 Medium Onions – Cut into thick long slices
3 Tbsp Tomato Paste – I’m using organic tomato paste, you may use fresh tomato paste
1 Tbsp Tomato Ketchup
1 Tsp Ginger Paste
1 Tsp Garlic Paste
2 Tbsp Ginger Julienne
1 Tsp Butter – You may use salted or unsalted butter as per availability
3 Tbsp Olive Oil
2 Tbsp Cream Cheese(Low Fat)  – You may use fresh plain cream
3 Tbsp Milk
½ Cup water



½ Tsp Turmeric
1 Tbsp Coriander Powder
1 Tbsp Cumin Powder
1 Tbsp Dry Mango Powder – You may use lemon juice incase mango powder is not available
½ Tbsp Garam Masala
1 Tbsp Dry Fenugreek Leaves
2 Tsp Red Chili Powder
1 Tsp Kashmiri Mirch – Special red chili powder, popularly used for its red color along with spice, available in Indian stores OR OMIT this step
2 Tsp Salt (As per your taste)



Prep: In a small bowl, whisk cream cheese and milk to form a smooth paste. Keep aside.

  1. In a nonstick wok, heat olive oil and butter over medium flames for ½ minute.
  2. Add onions and sauté for a minute over medium flames and then reduce the flames to low.
  3. Now add ginger+garlic paste, all the spices except mango powder, give it a stir and cook covered till the onions
    are tender (About 2 minutes).
  4. Now increase the heat to medium, add sliced capsicum and sauté for a minute (till capsicum is tender).
  5. Add tomato paste, ketchup, mango powder, sauté over medium heat for another minute, cover lid and
    reduce heat to low.
  6. Now add the cut paneer/cottage cheese pieces, water and sauté on medium heat for 2-3 minutes, till
    everything is evenly mixed and a thick gravy like texture is formed.
  7. Now reduce the heat, add cream cheese paste, stir lightly and quickly to mix everything together (If you mix it too much or heavily, the cream cheese will curdle).
  8. Give it a final boil (As soon as you see bubbles forming in the corners), turn off the heat.
  9. Transfer into serving dish, garnish with ginger julienne and Serve Hot.

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