- To begin, cube the paneer into bite-sized pieces. Dice onions and bell peppers into similar sizes. Keep aside. 
- To prepare the kadhai masala, dry roast coriander seeds (dhania), cumin seeds (jeera), black peppercorns, fennel seeds (saunf), and whole red chillies on low heat until you get a nutty aroma. Allow them to cool and grind them into a coarse powder. Keep aside. 
- To prepare the gravy, heat 2 tbsp of oil in a pan. Add in the cumin seeds (jeera) and allow them to crackle. 
- Add in finely chopped onions and saute until translucent.  
- Add in ginger garlic paste and saute some more until the onions are almost brown. Add a tsp of salt so that the onions cook faster. 
- Next, add the dry masalas - Kashmiri red chilli powder, cumin powder, coriander powder, and turmeric powder (haldi). Mix. 
- Add the pureed tomatoes and saute until the oil starts appearing on the sides.  
- In the meantime, prepare the paneer and vegetables. In another pan, heat 1 tbsp of oil. Add in the onions and bell peppers and saute on high heat for a few minutes until half done. 
- Move them to the side. Add the paneer cubes. Mix well. Cook for a minute or two. 
- Add in salt, Kashmiri red chilli powder, and the kadhai masala prepared earlier. Mix until well-coated. 
- Add these to the gravy. Mix well. Add some water if required. Cook for a few minutes so that the paneer and vegetables soak in the masala. Do not overcook the vegetables. 
- Check the salt and add more if required. Adjust the gravy as per your taste. 
- The Kadhai Paneer is ready to serve. Garnish with garam masala powder and chopped green coriander leaves. Serve with parathas or naans.