Creamy and Delicious Paneer Hyderabadi: A Restaurant-Style Recipe

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If you’re a fan of paneer based gravies, this Paneer Hyderabadi is a must-try! It’s a spicier and more flavourful version of the classic Palak Paneer, made with fresh spinach, capsicum, cashews, and aromatic spices. Unlike regular Palak paneer, this dish has a richer taste and deeper colour due to slow cooking and a unique blend of Hyderabadi style masalas.

Whether you serve it with roti, naan, or steamed rice, this curry is guaranteed to make your meal delicious and satisfying. Plus, it’s packed with the goodness of spinach and paneer, making it a nutritious choice for the whole family!

Health Benefits of Paneer Hyderabadi

  • Curd – Aids in digestion and enhances the flavor of the gravy.
  • Spinach (Palak) – Rich in iron, vitamins A & C, and antioxidants that boost immunity and keep your skin glowing.
  • Paneer – High in protein and calcium, making it great for bone health and keeping you full for longer.
  • Cashews – Add a natural creaminess while providing healthy fats and essential minerals.

Let’s Talk About Ingredients

  • Paneer – The hero of the dish, giving a soft and rich texture. Can be replaced with tofu for a vegan option.
  • Spinach – Gives the dish its signature green color and smooth texture. You can use a mix of spinach and methi for a slightly different taste.
  • Onion & Tomato – Forms the base of the gravy, adding sweetness and tanginess.
  • Capsicum – Adds a mild smoky flavor and enhances the texture. Can be skipped if not available.
  • Cashews – Adds creaminess to the gravy. Can be replaced with almonds.
  • Whole Spices – Cinnamon, cloves, and cardamom give the dish an aromatic touch. Essential for the Hyderabadi-style flavor.
  • Curd – Helps balance the spices and adds slight tanginess. Can be replaced with fresh cream.
  • Indian Spice Powders – Chili powder, turmeric, coriander powder, and garam masala add depth and warmth to the dish.
  • Kasuri Methi – A must for the final touch, giving a restaurant-style aroma.

Detailed Recipe

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Step-by-Step Instructions

  • Heat 1 tsp oil in a pan. Add sliced onions, garlic, ginger, cashews, green chili, and salt. Sauté until soft.

  • Add chopped tomato and cook until slightly mushy. Then add capsicum and fry until softened.

  • Add coriander leaves and spinach.

  • Fry until the leaves shrink.

  • Let it cool, then grind to a fine paste.

  • In another pan, heat 1 tbsp oil and toast the paneer cubes until slightly golden. Set aside.

  • In the same pan, add 1 tbsp oil. Add whole spices (cinnamon, cloves, cardamom) and chopped green chili.

  • Pour the green paste into the pan and cook for 5 minutes.
  • Add curd, chili powder, turmeric, coriander powder, and garam masala. Mix well and cook for 15 minutes on low flame.

  • cook until oil leaves the masala and colour changes
  • Add the toasted paneer cubes and coat them well with the masala. Cook for 2 more minutes.

  • Add crushed kasuri methi, garam masala, sugar, and 1 cup water. Adjust consistency as needed.

  • Partially cover and simmer for 10 minutes on low flame.

  • Serve hot with roti or rice, garnished with fresh coriander leaves.

Expert Tips

  • Blanch the spinach before grinding for a bright green color.
  • Adding cashews enhances the creamy texture, but you can also use almonds.
  • Slightly roasting the paneer gives it a firmer texture that holds up well in the gravy.
  • Cooking the gravy on a low flame helps the flavors blend better.

FAQs

Can I make this recipe without curd?
Yes, you can replace curd with fresh cream or skip it entirely for a more traditional taste.

How to keep the green color intact?
Blanch the spinach in hot water for 30 seconds, then transfer it to ice-cold water before grinding.

Can I use frozen spinach?
Yes, but fresh spinach gives a better texture and taste.

What can I serve with Paneer Hyderabadi?
It pairs well with chapati, naan, jeera rice, or even plain steamed rice.

Recipe card

Paneer Hyderabadi Recipe

A rich and flavorful paneer dish cooked in a spinach-based gravy with aromatic spices.
Prep Time10 minutes
Cook Time1 hour
Total Time1 hour 10 minutes
Course: Main Course
Cuisine: Indian
Keyword: side dish for chapathi
Servings: 4 people
Author: Jinoo Jayakrishnan

Ingredients

  • 1 tsp oil
  • 2 onions sliced
  • 5 cloves garlic
  • 1.5- inch ginger
  • 8-9 cashews
  • 1 green chili
  • 1/2 tsp salt
  • 1 tomato chopped
  • 1 capsicum chopped
  • 1/8 cup coriander leaves with stem
  • 2 cups tightly packed spinach
  • 1 tbsp oil for toasting paneer
  • 200 gms paneer cubed
  • 1/2 inch cinnamon
  • 2 cloves
  • 1 cardamom
  • 1 green chili chopped
  • 1 tbsp curd
  • 1/2 tsp chili powder
  • 1/4 tsp turmeric powder
  • 1/2 tbsp coriander powder
  • 1 tsp garam masala
  • 1/2 tsp crushed kasuri methi
  • 1/2 tsp sugar
  • 1 cup water

Instructions

  • Heat oil and sauté onions, garlic, ginger, cashews, green chili, and salt until soft.
  • Add tomato, cook until mushy, then add capsicum and fry until softened.
  • Add coriander leaves and spinach. Cook until wilted, then grind to a fine paste.
  • Toast paneer cubes in oil until golden brown. Set aside.
  • Heat oil, add whole spices and green chili. Pour in the green paste and cook for 5 minutes.
  • Add curd, spice powders, and cook for 15 minutes on low flame.
  • Add paneer and mix well. Cook for 2 minutes.
  • Add kasuri methi, garam masala, sugar, and water. Simmer for 10 minutes.
  • Serve hot with roti or rice.

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