In a small pan dry roast the spices for Kadai masala for 5 minutes on medium heat. Then transfer into the bowl and allow it cool. Then grind to a fine powder. Kadai masala ready.

Make the Kadai paneer masala :

In the same pan add 1 tbsp butter and add into chopped cubes onion and capsicum fry it few minutes. Then transfer into the bowl. Next, add 1 tsp butter and add paneer fry it few minutes. Transfer into the bowl.

In the same pan add oil and butter add the chopped onion and sauté for a few minutes until softened. Then add ginger garlic paste and sauté for a few minutes.

Then add turmeric powder, chili powder, Garam masala, and Kadai masala stir the spices and cook few minutes. Then add tomato purée, green chili, and coriander leaves and cook for 5 minutes.

Then add 1/2 cup water and salt and sugar. Cook for another 5 minutes. Then add 2 tbsp malai cream and mix it. Then add in fried onion, capsicum, and paneer and mix it. Close the lid and cook few minutes.

Finally, garnish with some coriander leaves.