Paneer handi is a slow-cooked, pot-style vegetarian curry with a creamy, aromatic gravy. This high protein vegetarian dish is a comforting family dinner option for any occasion.
Heat 2 tbsp ghee or oil in a clay pot or thick-bottomed handi over medium heat. Add cumin seeds and allow them to sizzle for 30 seconds, being careful not to burn.
Add chopped onions and sauté on medium heat until golden brown, about 8–10 minutes, stirring often for even caramelization.
Add ginger and garlic, cook for 1 minute, then add tomatoes, salt, turmeric, coriander powder, and red chili powder. Stir well and cook until tomatoes are soft and oil starts to release, about 6–7 minutes.
Blend soaked cashews with 3 tbsp water into a smooth paste. Add this paste to the pot and simmer for 5 minutes, stirring often and maintaining gentle heat to prevent sticking.
Add diced green bell peppers and cook for 2 minutes to retain some crunch. Mix in garam masala and kasuri methi.
Lower the heat to a gentle simmer. Add the paneer cubes, combine carefully to avoid breaking the cubes, and cook uncovered for 3–4 minutes so paneer soaks up the flavors.
Stir in the heavy cream, mix gently, and simmer on low for 2–3 minutes until the curry is creamy and thick. Taste and adjust salt; serve hot.