Paneer is a fresh, firm cheese made of milk that is curdled and then drained. It has a very mild taste that is slightly tangy. Paneer is usually made into a variety of dishes. It is used in the preparation of curries and also for making sweets like desserts, cheesecakes, and puddings. You will also find paneer in a wide variety of savory dishes, like dal and curries. Usually, paneer is used in dishes prepared in the Northern Indian cuisine, but in South Indian cuisine it is used in many other dishes. One such dish is paneer masala and capsicum curry.

Vegetarian recipes are gaining popularity in today’s Indian kitchens, and the veggie-loving set are turning to mushroom paneer and capsicum masala to make their lives a little more colourful. (If you don’t know what I’m talking about, read on.)

Mushroom paneer and capsicum masala recipe Mushroom paneer and capsicum masala recipe is an aromatic, spicy and lip-smacking vegetarian stir fry of eggplant and capsicum curry. It is also a very simple curry to prepare.

The combination of mushroom paneer and capsicum masala was novel to me, so I gave it a try. It was interesting and delicious. I prepared it in the masala style, which is peppery and spicy. Finally, I added capsicum; colored capsicums may also be used for crunchiness. You may use the same masala to make paneer and capsicum alone, or you can add potatoes or any other vegetable you want. This dish is delicious with paratha, chapathi (roti), or plain rice.


  • 250 gms mushroom
  • 1 tsp. capsicum
  • 200 gms paneer
  • 4 teaspoons of oil
  • 1 onion (large, chopped)
  • 4 green chilies, sliced
  • 2 tbsp coriander powder
  • 2 1/2 to 3 teaspoons pepper powder
  • 1/2 cup water
  • 4 tbsp. curd
  • if necessary, salt
  • 3/4 teaspoon saunf (fennel seeds)
  • 3 tblsp. cloves
  • 3 green cardamoms
  • 2 inch cinnamon stick – 1


  • Slit or slice the green chilies and chop the onions.
  • Paneer should be cut into cubes or medium-sized slices, while mushrooms should be chopped into pieces or halves.
  • Capsicum should be sliced into squares or medium-sized slices.
  • Preheat the kadai with the oil, then add the entire spices and swirl for 2 to 3 seconds before adding the onions and cooking till they are translucent and soft golden in color.
  • Now add the coriander powder, 2 teaspoons pepper powder, and water, stir well, and simmer for 3 to 4 minutes, or until the spices are toasted in the oil.
  • Now add the curd and whisk rapidly to prevent it from curdling. Cook for 4 to 5 minutes, or until the curd is thoroughly mixed with the onion mixture.
  • Now add the mushrooms and stir thoroughly, then simmer on medium heat until done.
  • Do not add water since the mushroom will begin to shrink, similar to spinach leaves, but only little.
  • After 10 minutes, add 1 teaspoon pepper powder, paneer, and green chilies, combine well, and simmer for 7 minutes, stirring constantly.
  • If it’s sticking, add 2 tsp oil around the edges.
  • When the mushroom and paneer are done, it will look like a masala with a little sauce, and the color will change from lighter to darker. Simmer for 5 minutes, then add the capsicum and coriander leaves and cook for another 5 to 8 minutes, or until the oil begins to leave.
  • The capsicum should have a crisp texture.
  • The mushroom and paneer are nicely covered with masala, giving you a delicious tatse.
  • Serve with simple rice, roti, or parotta.


  • You may also change the amount of veggies.
  • If it gets too dry during cooking, a little water may be added.
  • The curd I used is thick and not runny.
  • You may modify the amount of pepper powder to your liking.
  • Carefully stir the paneer pieces together; else, they may shatter.


Curry is a staple Indian dish that has been around since the 13th century, but does it have to be made with meat? If you want to avoid eating meat, or just eat vegetarian, you could make mushroom paneer and capsicum masala. This is a simple dish that is easy to prepare at home, but still retains its original flavor and texture.. Read more about south indian mushroom recipes and let us know what you think.