Capsicum Curry Hyderabadi Capsicum Masala

About This Capsicum Curry

My Capsicum curry is inspired by gravy or curry recipes made in the Hyderabadi cuisine. It has delicious, complex, mouth-watering flavors. Tamarind adds a distinctive sour taste while the peanuts and sesame seeds add rich nutty flavors. The addition of capsicum and onions adds a sweetness to the gravy that balances out all the flavors in the gravy to make a delicious lip-smacking capsicum masala curry! I use a mixture of green and red bell peppers to make this recipe. However, you can use one color or two different colored bell peppers depending on what you have. For a more colorful gravy use the entire trio of green, red and yellow bell peppers/capsicum. The ingredients used to make this curry are sauteed first and then ground into a paste. Sauteing the spices and seeds releases the aroma in the oil and makes the curry very flavorful. You will love this gravy recipe as it tastes so good. I have sauteed all the masala ingredients together rather than separately and I did not fry the capsicum separately either. The results are just as tasty using this method. Capsicum curry can be served with roti, paratha, steamed rice, Biryani or Pulao.

How to Make Capsicum Masala

Prep Capsicum and Roast Spices

1. Rinse and slice capsicums (bell peppers). They should have a medium width. Make sure they are not too thin or thick and remove the seeds. Alternatively, you can cut the capsicums into small square pieces.
2. Heat 2 tablespoons of oil in a pan. Add 2 tablespoons of peanuts, 1 tablespoon of white sesame seeds, 1 tablespoon of coriander seeds and 1 teaspoon of white poppy seeds (optional).
3. Fry the ingredients on low heat for 3 to 4 minutes stirring regularly.
4. Add 1.5 teaspoons of chopped ginger and 1 teaspoon of chopped garlic and sauté for one minute.
5. Then add 1.25 cups of chopped onions.
6. Mix and stir very well.
7. Saute the onions stirring often until they turn translucent or light brown and add a pinch of salt, to help the onions cook faster.
8. Next add 3 tablespoons of desiccated coconut. Alternatively use 6 tablespoons of fresh coconut.
9. Mix and stir again very well.
10. Continue to stir non-stop and saute for 7 to 8 minutes on low heat or until the coconut turns golden. The whole mixture should turn light golden or golden.

Make Masala or Curry Paste

11. Leave the roasted mixture to become cool completely. Then add the mixture to a grinder or blender jar and add 1 teaspoon of tightly packed seedless tamarind.
12. Grind or blend into a smooth paste with ½ to ⅔ cups of water. Then set the curry paste aside for later.

Cook Capsicum Masala

13. Wipe the pan used to fry the nuts and seeds. Heat 2 tablespoons of oil in the same pan. Lower the heat and add ½ a teaspoon of black mustard seeds.
14. Once the mustard seeds begin to crackle, add 7 to 8 fenugreek seeds and 7 to 8 curry leaves. Sauté for 5 to 6 seconds.
15. Add ⅓ cup of tightly packed chopped tomatoes.
16. Sprinkle a pinch of salt for seasoning and to help the tomatoes cook faster.
17. Stir and saute the tomatoes until they soften and become pulpy.
18. Next add the sliced capsicum/green bell pepper.
19. Stir and sauté bell peppers for about 3 to 4 minutes on medium heat.
20. Lower the heat and add the ground curry paste that you set aside previously.
21. Add ⅛ teaspoon of turmeric powder (about 2 to 3 pinches) and 1 teaspoon red chili powder. Tip: For a spicier taste add 1.5 to 2 teaspoons of red chili powder instead.
22. Mix very well.
23. Sauté for about 2 minutes on low heat. Stir continuously to prevent the paste from sticking to the pan.

Make Capsicum Curry

24. Next add 1 to 1.25 cups of water.
25. Combine very well.
26. Add 1 teaspoon of powdered jaggery and salt to taste. Swap ½ to 1 teaspoon sugar or brown sugar with jaggery if you are out of jaggery.
27. Add ½ teaspoon of garam masala powder.
28. Stir and simmer the capsicum curry on low to medium heat for about 15 minutes or until the capsicum slices are cooked. Tip: If you prefer the capsicums slightly crunchy then do not cook the curry for too long.
29. Stir from time to time while the gravy simmers. Once you see oil floating on top of the gravy it is done. Finally, check the taste and add more salt or powdered jaggery if necessary.
30. Serve capsicum masala hot or warm with roti, paratha, naan, pulao, biryani or simple steamed rice. You can also garnish the curry with fresh coriander leaves for more flavor.

Expert Tips

Capsicum peppers: Use fresh capsicum peppers for this recipe. I added green and yellow capsicum peppers but feel free to use one, two or three different colored capsicums. Slice capsicum peppers into medium sizes or dice them. You also have the option to cook the bell peppers for a long or short amount of time depending on whether you prefer soft or crunchy peppers. Paste: After adding all of the roasted ingredients to a grinder make sure the paste has a smooth fine texture. This will ensure that the capicum gravy has the perfect texture. Gravy: Make sure you taste the gravy as you go along and adjust the seasoning to your taste. While simmering the gravy mixture, stir at regular intervals to make sure that it does not burn. The consistency of the curry is medium, however you can make it slightly thin or thick by adjusting the amount of water. Veggies: In place of capsicum, you can make this dish with vegetables like eggplants (brinjals), cauliflower, potatoes and okra. For okra sauté them first and then add towards the end once the gravy is cooked through and you see oil floating on top of it. To make the dish more filling you can also add some potatoes with the capsicum.

Please be sure to rate the recipe in the recipe card or leave a comment below if you have made it. For more vegetarian inspirations, Sign Up for my emails or follow me on Instagram, Youtube, Facebook, Pinterest or Twitter. Capsicum Rice Recipe or Bell Pepper Rice Pilaf (Easy & One Pot) Capsicum Chutney | Bell Pepper Chutney Capsicum Fry | South Indian Bell Pepper Stir Fry Shimla Mirch Ki Sabji (Aloo Capsicum) This Capsicum Masala post from the blog archives first published in May 2015 has been updated and republished on April 2023.