Paneer Do Pyaza |Paneer in Caramelized onion gravy

Paneer Do Pyaza – A Paneer dish that also stars Onion in double role. Paneer Do Pyaza translates to Paneer cooked with onion cooked 2 different ways. This recipe has 2 slight variations, one no grind method and another ground method. Here I have the ground method.


With so many paneer dishes that use similar ingredients it is hard to tell the difference in a quick glace. Paneer Do Pyaza seems no different than any other paneer recipe that uses onion, tomato and capsicum, but the difference here is the gravy that includes the caramelized onion and capsicum that changes the taste profile. I believe the process and the subtle variations introduce huge difference in flavors and taste.


I had family visit us on Sunday evening and I cooked this up in 30 minutes. Two of my very outspoken food critics really enjoyed it so I would give this recipe full score. It is quick and easy if you have all the ingredients.


Saute and grind the onions, tomatoes, capsicum and cashews to a smooth mix. Add the  whole and dry masala to the oil and add in cubed onion to cook it until translucent. Once done add the ground paste and cook the gravy till it leaves the side.


Now add in the Paneer, Capsicum and tomato and finish it with the kasoori methi and fresh chopped coriander.

Paneer Do Pyaza | Panner in Caramelized onion gravy

  • Servings: 5
  • Difficulty: Medium
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Onion – 2  large cubed
Paneer – 3 cups cubed
Tomato – 1 cubes
Green Capsicum – 1 cubed
Cloves – 5
Cardamom – 4
Jeera – 2 tsp
Chilli powder – 1 tbs
Turmeric Powder – 1 tsp
Coriander powder – 2 tsp
Garam masala powder –  1 tbs
kasoori methi – 1 tsp
chopped coriander
Oil  – 3 tbs
Salt as needed

For gravy:

Onion – 1 medium
Tomato – 2 medium
Red capsicum – 1 small
Cashew or Almonds – 5 -8
Garlic – 3 cloves
Ginger – 1 inch piece
Green chilis ( optional) – 2


  1. In a  pan add some oil and saute the onions until its caramelized i. e the onion is nice and soft and changes to golden brown color. Caramelization brings out the sugary juices of the onion and makes it taste sweeter.
  2. Once done remove it in a separate pan.
  3. Noe in the same pan saute the capsicum, tomatoes, ginger and garlic nice and soft.
  4. Once the mixture cools down grind it all to a smooth paste and set it aside.
  5. In the same pan add 3 tbs of oil and add the whole and dry masalas one by one.
  6. When the jeera splatters add the cubed onions and fry it in the oil.
  7. Cook the onions until translucent. Don’t cook it too soft and mushy. Leave a little crunch.
  8. Now add the ground paste to the pan. Let the mixture cook till the gravy leaves the side of the pan.
  9. Now ads in the cubed paneer and let the panner soak all the masalas for about 10 mins in low flame.
  10.  Then add the cubed capsicum and tomato cook for 2-3 minutes.
  11. Finish it with the kasoori methi and fresh chopped coriander garnish.

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