The gravy in this handi paneer recipe is made with a base of cashews, onions and tomatoes. I have also used some milk powder to add faint sweet notes in the gravy. You can also use cream instead of milk powder. Paneer handi recipe is very simple and easy to make. I make this recipe similar to the recipe of Veg handi which I have posted earlier. There are many Indian recipes made in both handi and kadai and are named after the kind of pan used. This handi paneer is best served hot or warm with tandoori rotis or plain naan or butter naan or parathas or rotis or cumin rice or biryani rice. It can also be had with plain steamed rice.
How to make Paneer Handi
Making cashew paste 1. Soak 3 tablespoons cashews in ⅓ cup hot water for 20 to 30 minutes. 2. After 20 to 30 minutes, drain all the water and add cashews to a small grinder or blender jar. Also, add 3 to 4 tablespoons of water. 3. Grind or blend cashews to a smooth and fine paste. Keep cashew paste aside. 4. Heat 2 tablespoons of ghee in a handi or pan or kadai. Keep the heat to a low. Instead of ghee you can also use a neutral flavored oil. 5. Then add 1 small tej patta, 1 inch cinnamon, 2 cloves, 2 green cardamoms and 2 single strands of mace. 6. Fry the spices on low heat for some seconds till they become aromatic. 7. Then add ⅓ cup chopped onions. 8. Mix and begin to saute onions on a low to medium heat stirring often. 9. First the onions will turn translucent. Continue to saute them. For quick cooking of onions add a pinch of salt. 10. Saute till the onions turn golden stirring often. 11. Then add 1 teaspoon ginger-garlic paste, 1 green chili (slit) and 1 tablespoon chopped coriander leaves. Sauté for some seconds till the raw aroma of ginger and garlic goes away. 12. Then add ½ cup of finely chopped tomatoes. 13. Mix the tomatoes and begin to saute them on a low to medium heat. 14. Saute till the tomatoes turn pulpy and mushy. The tomatoes have to be cooked very well and oil should release from the sauteed onion-tomato mixture. 15. Lower the heat and add the following ground spices:
¼ teaspoon turmeric powder ¼ teaspoon Kashmiri red chili powder ½ teaspoon garam masala powder
- Mix the spice powders and saute for half a minute.
Making paneer handi gravy
- Add the prepared cashew paste.
- Stir and mix well.
- Stirring often saute the masala till you see oil releasing from the sides.
- Then add 2 teaspoons milk powder. Since I have not used cream, I have added milk powder. This is an optional step. If you have cream, then you can add 1 to 2 tablespoons of it once the gravy is done.
- Stir and mix again very well.
- Now add 1 cup of water.
- Stir and mix again to a smooth curry.
- Season with salt as per taste and mix again.
- Simmer the gravy for 6 to 7 minutes on medium-low heat. When the gravy is done you will see oil specks on the top.
- Then add 200 grams paneer cubes and stir to mix. Turn off the heat. Make sure the paneer is fresh and not tasting sour. Best is to use homemade paneer.
- Then add ½ teaspoon kasuri methi (dried fenugeek leaves) which have been crushed. At this step you can also add 1 to 2 pinches of nutmeg powder or grated nutmeg.
- Stir to gently mix.
- Lastly add 2 tablespoons of chopped coriander leaves. Stir and mix again gently. 30 Serve paneer handi hot or warm with naan or chapati or plain paratha or butter naan or cumin rice or saffron rice. More Paneer recipes then do check:
Malai kofta Palak paneer Paneer butter masala Chilli paneer
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. This Paneer Handi Post from the blog archives, first published in December 2017 has been republished and updated on December 2022.