I love exploring different curry / subzi recipes that are not common. Recipes that don’t have the typical masala ingredients. I am talking about recipes like Dahi Baingana, which is a yogurt-based gravy and is sort of in-between a subzi and raita. One other example is this Methi Malai Mutter which is a cream/milk-based recipe. This Hyderabadi paneer which is also known as Paneer Hyderabadi in restaurants falls under that unique category. Even though the base for this paneer subzi is onion and tomato, it has certain other ingredients that add to its unique flavor. Hyderabad cuisine is known for its rich and royal flavors. The richness / creamy factor for this recipe comes from the peanuts that we use in the gravy. Apart from that, the subzi also has sesame seeds which happens to be one of my favorites. The first time I read about this recipe, I was very excited to try it as we all love Paneer at home. I made it quite a few times to get that perfect flavor combination. This Paneer subzi is so delicious that soon you will be making this for all your dinner parties.
Why make this Paneer Hyderabadi?
If you are a paneer lover, then you will want to try this different and unique recipe. It is very flavorful and made with ingredients that are easy to find and commonly found in the pantry. When I say the paneer curry is rich and royal, it gets that from the nuts instead of cream or milk. This makes it slightly healthier so we can indulge in it a little more. Works great with roti, paratha, or poori and with Pulao or Biriyani.
Ingredients and Substitutes
Check the recipe card at the bottom of the page for exact measurements and printable detailed recipes. Paneer - You can use homemade paneer or store-bought ones (like I did) for the recipe. If the paneer is frozen, thaw it and cube it to use in the recipe. Vegetables - I use bell pepper and onions in the subzi along with pureed tomatoes. For recipes like this, I use a can of diced or whole tomato and puree it. That gives a beautiful color and also has no skin. If using whole tomatoes, remove the skin and then puree it. Spice powders - We will be using red chili powder, turmeric powder, and garam masala to make Hyderabadi Paneer. I buy my spices from the Indian stores. Oil or Butter - I usually use a mix of oil and butter to make the paneer subzi. I like to pan fry the paneer using oil but then when sauteeing the masala, I use butter or a combination of oil and butter. Salt - As needed for the recipe. To grind together (masala paste) - We will be dry roasting Coriander seeds (dhania), sesame seeds (ellu), dry red chili (milagai), and cumin seeds (jeera). Then we will grind them with roasted peanuts, garlic, ginger, and some onion. If you are using unroasted peanuts, roast it before grinding.
Step-by-step process
In a pan, dry roast coriander seeds, sesame seeds, cumin, and red chili (1). Once it cools down a bit, transfer it to a blender jar and add the rest of the ingredients mentioned under ‘To Grind’, and grind it to a smooth paste (2). Add a little water if needed.
Cube the paneer into ½ inch pieces and pan-fry them until light brown in about 1 tablespoon of oil (3). Remove the paneer from the pan and keep it aside. I sometimes also keep the fried paneer soaked in warm water to keep it soft.
In the same pan, heat 1 tablespoon of oil and sauté the cubed onion and bell pepper (4). Make sure that they still have a crunch in them. Remove from the pan and keep it aside.
Again, in the same pan, heat the remaining oil and add the ground paste. Cook the ground paste on low medium flame until the raw smell disappears and it turns aromatic (5). Also, the paste would thicken and the oil would start leaving the sides of the pan. This will take about 10-12 minutes, but cooking it patiently in low flame ensures a very flavorful subzi.
Now add the masala powders (6) (red chili powder, turmeric powder, and garam masala) and the pureed tomato (7) and mix well. Cook for 3-4 minutes for the flavors to combine and then add the salt. Do not add salt in the beginning as it will cause the gravy to splatter all over.
Add the sautéed onions, bell pepper, and paneer pieces along with salt needed (8 & 9). Mix gently and simmer for about 5-7 minutes (10).
Serve the Hyderabadi Paneer hot with rice or chapatti.
Expert Tips
Keep the pan-fried paneer immersed in hot water to keep it softer in the subzi. You can use paneer without frying as well, but I love the flavor of the paneer when it is pan-fried. Make sure to take time to saute the masala paste. Keep the flame low and fry the paste until it is aromatic and oil starts to seep out through the masala. I love using canned tomatoes for subzi like this that use tomato puree. It saves time to blanch and remove the skin from the tomatoes and also gives the paneer subzi a beautiful color. You can sprinkle the subzi with some toasted sesame seeds before serving for a wonderful flavor.
Frequently asked questions
More Paneer recipes
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