1To a small kadai or pan, dry roast the spices for kadai masala for 3 to 4 minutes on medium heat until fragrant. Add more red chilies for a spicier masala.

2Remove kadai from heat and transfer the roasted spices to a spice grinder.

3Let it cool down a bit and then grind to a fine powder. Set aside. You can also make this kadai masala in advance and store it.

4In a large kadai or any other pan, now melt butter with oil on medium heat.

5Add the chopped onion and saute for 3 minutes until softened. Then add the sliced green chili and ginger garlic paste and saute for another 1 to 2 minutes.

6Then add the chopped tomatoes and tomato paste. Mix and cook for around 6 minutes until tomatoes are really soft.

7Then add 3 to 4 teaspoons of the kadai masala that you prepared earlier (or add the whole thing if you like it spicy). Also add the garam masala, kashmiri red chili powder.

8Add half of the ginger julienne. Stir the spices and cook for 30 seconds.

9Then add 1/2 cup water and stir.

10Add cream, salt and sugar and mix. Cook for one minute.

11Add in the paneer and bell peppers (capsicum) and mix. Cover the pan or kadai with a lid and cook for 5 to 6 minutes on medium heat until bell peppers are slightly softened. You only want them half cooked here.

12Crush kasuri methi and add to the pan.

13Garnish with remaining ginger julienne and cilantro. Serve kadai paneer with naan or paratha.