Making the Paneer Hyderabadi at home requires minimum effort, and the recipe creates a delightful restaurant-style dish. If you are bored with a paneer in red gravy, you should try this recipe!

Highly Flavorful Paneer Hyderabadi

If you are regular to my site, you may know that I love making different paneer curries without onion and garlic. Like most Indian families, my family loves paneer, so I try to include it in many dishes. And being vegetarian, it is necessary to include this protein source in the diet. So, coming back to this recipe, do not be intimidated by its color and the inclusion of spinach as one of the ingredients. The dish may look like Palak Paneer, but it tastes totally different from Palak Paneer. Hyderabadi Paneer is spicy, flavorful, full of pan-fried and soft paneer cubes, and delicious. It has an earthy and pleasant taste of coriander leaves. Making this Hyderabadi Paneer Masala at home is effortless, and this recipe will give you a restaurant-style dish. I have pan-fried paneer with very little oil until they are golden brown. However, this step is optional, and you can add paneer cubes without pan frying. I cut the paneer block lengthwise into two thick slices and then pan-fried the whole slices. It is an easier and quicker way to shallow-fry paneer. The process of pan-frying the paneer cubes is a little tedious and lengthy. So, I like to pan-fry the paneer slices, and once they are golden brown, cut them into cubes.

Ingredients and Notes

How To Make Paneer Hyderabadi

Pan Frying The Paneer

Cut the paneer block in half lengthwise into two layers. If your paneer block is long and not too thick, you do not have to cut it lengthwise. On the contrary, you can cut it into three slices if it is too thick. So, cut the block into two or three slices depending on how thick you prefer the paneer cubes. Heat oil in a thick-bottomed shallow pan or skillet. Place the paneer slices in it.

Sprinkle them with a pinch of salt and red chili powder, and let them sizzle on both sides until they turn a light golden color.

Remove the paneer from the pan and cut into the desired size of cubes. Set them aside.

Making The Gravy

Heat oil in a pan and add bay leaf, cinnamon, green and black cardamoms, and cloves. Saute for a few seconds or until the spices are aromatic.

Add green chilies, ginger, and cashews. Mix well and saute for a minute.

Add chopped tomatoes and salt to taste and mix well. 

Cook the tomato mixture for 8-10 minutes or until the tomatoes are soft and mushy.

Now add spinach and coriander leaves and ¼ cup of water. Mix well and cook for 2-3 minutes or until the leaves are wilted. Turn off the heat and allow the mixture to cool down a bit.

Transfer it to the blender jar and blend it into a fine puree. 

Making The Paneer Hyderabadi

Heat oil in a pan and add cumin seeds. Allow cumin seeds to sizzle.

Then add prepared gravy and mix well. Cook the gravy for 2 minutes, stirring often.

Then add turmeric powder, red chili powder, cumin powder, coriander powder, and garam masala. Add less red chili powder to avoid making the curry too spicy. You can instead add Kashmiri red chili powder, which is not too spicy.

Mix everything well and cook the gravy on medium heat for 7-8 minutes, and the fat separates from the sides, stirring often.

Now add paneer cubes and salt to taste and mix well. Cook Paneer Hyderabadi for 3-4 minutes on low-medium heat.

Finally, add Kasoori methi and cream. Mix everything well, cook for a minute, taste, and adjust the salt if needed.

Turn off the heat and transfer the Paneer Hyderabadi to a serving bowl.

Serving Suggestions

Paneer Hyderabadi without Onion and Garlic can be served with Naan, Tandoori Roti, or Paratha. You can pair it with Whole Wheat Kulcha (No Yeast) for a complete meal. This paneer curry can also be served with plain rice or Jeera Rice (Restaurant Style). If you want to make a festive meal, pair Hyderabadi Paneer with other Dal preparations and accompaniments like Boondi Raita, Pomegranate Raita, or Cucumber Raita.

More Delicious Paneer Curries

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