Mushroom paneer and capsicum masala (south Indian style)

Mushroom paneer and capsicum masala combination is new to me and I tried, which was different for me and tasty too. I made it masala type, which has a peppery taste and spicy also. In this at last I added capsicum; for crunchiness, you can add coloured capsicums also. With the same masala you can try paneer and capsicum only or can add potatoes also, any vegetable which you like. This goes well with paratha, chapathi (roti) or just plain rice.


  • Mushroom – 250 gms
  • Capsicum – 1
  • Paneer – 200 gms
  • Oil – 4 tsbp
  • Onion (big, chopped) – 1
  • Green chillies (sliced) – 4
  • Coriander powder – 2 tbsp
  • Pepper powder – 2 1/2 to 3 tsp
  • Water – 1/2 cup
  • Curd – 4 tbsp
  • Salt – as required
  • Saunf (fennel seeds) – 3/4 tsp
  • Cloves – 3
  • Green cardamoms – 3
  • Cinnamon stick (2 inch) – 1


  • Chop the onions, slit or slice the green chillies.
  • Cut mushroom into chunks or into half and paneer into cubes or medium size cuts.
  • Cut capsicum into square cut or medium size cutting.
  • Preheat the kadai with oil, when it is hot add whole spices and stir for 2 to 3 sec then add onions immediately and cook till it is transparent and soft golden colour.
  • Now add coriander powder, pepper powder 2tsp and water mix well and cook for 3to4min, till the spices are roasted in the oil.
  • Now add curd and stir it quickly so that curd does not curdle and cook for 4to 5, till the curd is well blended with the onion mixture.
  • Now add the mushrooms and mix well, cook till it is cooked on medium flame.
  • Do not add water as after adding mushroom, it will start to shrink like spinach leaves but little only.
  • After 10min add pepper powder 1tsp, paneer and green chillies mix well, cook for 7min, and stir it carefully.
  • Add oil 2tsp, around the corners if it is sticking.
  • When mushroom and paneer is cooked well, it will be like masala type with little gravy, from lighter colour to it changes to darker colour, simmer it for 5min, then at last add capsicum, coriander leaves and simmer for 5 to 8min, till oil starts leaving.
  • The capsicum should be crunchy.
  • Mushroom and paneer is well coated with the masala, which gives you a very good tatse.
  • Serve it with roti, parotta, or plain rice.


  • Can adjust with the quantity of vegetables also.
  • While cooking, if it becomes very dry can add little water.
  • The curd which I used is thick, not watery.
  • You can adjust with the pepper powder according to your taste.
  • Stir paneer pieces carefully, otherwise it can break.

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