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Home >> Recipes >> Paneer

Paneer In Veggie Sauce

Published: Jul 31, 2022 · Modified: Apr 11, 2024 by Jyoti Behrani · This post may contain affiliate links · 10 Comments

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The BEST and incredibly creamy Paneer in the veggie sauce! The luscious veggie-based sauce has a unique restaurant-style flavor for all you paneer lovers. A great way to sneak in some extra veggies for those kiddos and picky eaters!

Paneer in veggie sauce

It is the end of the week and I am planning to go for groceries tomorrow. It's the perfect time to clear up my refrigerator. Look what I found in my refrigerator - a couple of tomatoes, a few carrots, zucchini, a block of paneer, and red bell pepper. I had to plan my dinner with all the veggies I had in hand. And decided to make this Paneer in the veggie sauce.

It is such a satisfying vegetarian dinner, this sauce is so creamy, lip-smacking, and packed with nutrients. So simple to make, healthy, and delicious!

It is a versatile veggie sauce that can be used in so many dishes like this one with paneer in veggie sauce, over some pasta, or even with some meat. Honestly, it is so good I could have it as a dip!

Jump to:
  • About Paneer in Veggie Sauce
  • INGREDIENTS FOR PANEER IN VEGGIE SAUCE
  • DIRECTIONS FOR PANEER IN VEGGIE SAUCE
  • TIPS FOR DELICIOUS PANEER IN VEGGIE SAUCE
  • FREQUENTLY ASKED QUESTIONS
  • Paneer In Veggie Sauce

About Paneer in Veggie Sauce

Versatile, and adaptable, the paneer in the veggie sauce is a delicious Indian curry made with colorful veggies and paneer. Luscious and rich paneer with velvety smooth sauce, soft cubes of paneer, and a ton of flavors make this dish one of the best Paneer dishes.

A delicious, hearty sauce packed full of fresh veggies and some aromatic Indian spices. The only sauce you'll want to make! This sauce freezes well too.

This veggie sauce is quite filling and incredibly nutritious! A great way to use up all the leftover veggies or even for those picky eaters.

Perfect for the holiday, this paneer in the veggie sauce, delivers an array of flavors, with creamy, luscious paneer. A nourishing dish loaded with colorful veggies, protein, and irresistible Indian spices.

Paneer in veggie sauce

INGREDIENTS FOR PANEER IN VEGGIE SAUCE

FOR THE VEGGIE SAUCE

1 medium onion, quartered

3 medium tomatoes, quartered

1 medium zucchini, big chunks

1 small red or yellow or orange bell pepper, roughly chopped; 

2 small carrots, roughly chopped

3-4 cloves garlic, crushed

½ inch ginger, chopped

1-2 green chili; adjust to taste

a handful of unsalted whole cashews (about 12-15 cashews)

1 tablespoon tomato paste (optional)

1 teaspoon oil

1-2 whole green cardamom

2 teaspoon coriander powder

½ teaspoon red chili powder, adjust to taste

¼ teaspoon turmeric powder

½ cup water

salt to taste

FOR THE PANEER IN VEGGIE SAUCE

12 oz paneer, cut into a triangle or square shape

1 teaspoon kasuri methi

2 tablespoon butter or ghee

5-6 whole cashews, halved (optional) 

¼ teaspoon Kashmiri chili powder (optional); For color

1 green chili, slit into two 

¼ teaspoon garam masala, adjust to taste

1-2 tablespoon fresh cream (optional)

1 teaspoon honey or preferred sweetener (optional)

salt to taste

2 cups warm water

FOR THE GARNISH 

1-2 teaspoon fresh cream 

roasted cashews halved

Pic Shown: Paneer In The Veggie Sauce

 

Paneer in veggie sauce

DIRECTIONS FOR PANEER IN VEGGIE SAUCE

Sharing my easy recipe to make paneer in the veggie sauce using stovetop, Instant pot, and stovetop pressure cooker. Use any of the following methods and the result will amaze you! 

PREP FOR PANEER IN VEGGIE SAUCE

Cut the paneer into a triangle or square shape. Place the paneer pieces in warm water. Set it aside.

Chop the veggies in chunks - onion, tomato, zucchini, bell pepper, and carrots.

Crush the garlic pods, and chop or grate the ginger.

STOVETOP PANEER IN VEGGIE SAUCE 

Heat oil in a pan over medium-high heat. Add onions, and crushed garlic and sauté for 1-2 minutes.

Next add tomato, zucchini, bell pepper, carrots, green chili, ginger, and tomato paste (optional). Sauté for 2-3 minutes on high heat, stirring frequently.

Now add coriander powder, red chili powder, salt to taste, cashews, and green cardamom. Sauté for 30 seconds, stirring frequently. Add water and deglaze the pan.

Cover the pan with the lid, reduce the heat, and simmer for 20-25 minutes or until the veggies are soft and cooked.

Turn OFF the heat. Remove the lid, and allow the mixture to cool down.

Using a hand blender, blend the mixture to a fine puree.

(Optional) Strain the puree through a fine mesh strainer for a nice creamy, smooth veggie puree.

Transfer the veggie puree to a bowl. Heat butter or ghee in the pan.

(optional) Add halved cashews and fry for 30 seconds or until lightly golden brown. Remove the cashews to a plate and set it aside.

Add slit green chili, and Kashmiri red chili powder (optional). Immediately pour the veggie puree and cover with the lid. Reduce the heat to medium-low and simmer the sauce for 2-3 minutes, stirring occasionally.

Note: Be careful as the veggie sauce may splatter. Use a splatter screen or lid to prevent any splashes.

Drain the paneer from the warm water and add it to the sauce. Simmer the paneer in the veggie sauce for 2-3 minutes or until heated through.

Add garam masala, cream (optional), honey (optional), and crushed Kasuri methi. Give it a good stir. 

Turn OFF the heat. Transfer the paneer in the veggie sauce to a serving dish. Garnish with some fresh cream and roasted cashews (optional).

Pic Shown: Paneer In The Veggie Sauce

 

Paneer in veggie sauce

INSTANT POT PANEER IN VEGGIE SAUCE

Turn ON SAUTE (more). When the screen displays "HOT" and oil. Add onions, and crushed garlic and sauté for 1-2 minutes.

Next add tomato, zucchini, bell pepper, carrots, green chili, ginger, and tomato paste (optional). Sauté for 2-3 minutes on high heat, stirring frequently.

Now add coriander powder, red chili powder, salt to taste, cashews, and green cardamom. Sauté for 30 seconds, stirring frequently. Add water and deglaze the pan.

Cancel SAUTE. Close the lid, and set the pressure valve to sealing. Turn ON PRESSURE COOK (high) for 15 minutes.

Allow 10 minutes of natural pressure release. After 10 minutes, release the pressure manually and open the lid.

Take out the inner pot, and allow the mixture to cool down. 

Using a hand blender, blend the mixture to a fine puree.

(Optional) Strain the puree through a fine mesh strainer for a nice creamy, smooth veggie puree.

Transfer the veggie puree to a bowl. Turn ON SAUTE (more). Heat butter or ghee.

(optional) Add halved cashews and fry for 30 seconds or until lightly golden brown. Remove the cashews to a plate and set it aside.

Add slit green chili, and Kashmiri red chili powder (optional). Immediately pour the veggie puree and cover with the lid. Simmer the sauce for 2-3 minutes, stirring occasionally.

Note: Be careful as the veggie sauce may splatter. Use a splatter screen or lid to prevent any splashes.

Drain the paneer from the warm water and add it to the sauce. Simmer the paneer in the veggie sauce for 2-3 minutes or until heated through.

Add garam masala, cream (optional), honey (optional), and crushed Kasuri methi. Give it a good stir. 

Turn OFF SAUTE. Transfer the paneer in the veggie sauce to a serving dish. Garnish with some fresh cream and roasted cashews (optional).

STOVETOP PRESSURE COOKER PANEER IN VEGGIE SAUCE

Follow the directions for Instant Pot cooking. Close the lid, and place the whistle (weights). After the first whistle reduce the heat to low and cook for 15 minutes. Allow 10 minutes for natural pressure release and release the pressure manually. The rest of the recipe is the same as Instant Pot.

Pic Shown: Paneer In The Veggie Sauce

 

Paneer in veggie sauce

TIPS FOR DELICIOUS PANEER IN VEGGIE SAUCE

Use combination of veggies for flavor and nutritional value. I like to add onions, tomatoes, zucchini, mixed bell peppers, carrots, beets, sweet potato, green beans, and green peas.

Cashews add a nice creamy texture to the sauce without adding any cream. It also helps to thicken the sauce.

Make sure to deglaze the pan or pot to avoid any burnt food.

Strain the sauce through a fine mesh for a silky, smooth veggie sauce.

Soaking paneer in warm water, softens and brings out the fresh flavor in the paneer. Soak the paneer pieces in warm water for 10-15 minutes. After 15 minutes, remove the pieces and use them in the dish as suggested.

Add paneer and let it simmer for a couple of minutes or until the sauce comes to a gentle boil. This helps the paneer warm through and absorbs all the flavors.

Paneer in veggie sauce

FREQUENTLY ASKED QUESTIONS

WHERE TO BUY PANEER

Paneer is available in most Asian or Indian grocery stores. You can make fresh paneer at home.

HOW TO MAKE HOMEMADE PANEER

I have shared a recipe for homemade paneer on my blog. Here's the link to the recipe – How To Make Paneer

CAN I FRY PANEER

Paneer may be deep-fried or pan-fried before using it in the recipe. Here’s how to pan-fry the paneer:

Heat 1-2 tablespoons of ghee/oil in a pan. Add paneer pieces and fry them on both sides until light brown. Remove it on a paper towel and use it in the dish as suggested.

CAN I USE FROZEN PANEER

If using frozen paneer, thaw the paneer overnight or for a couple of hours, in the refrigerator.

I CAN’T FIND KASURI METHI

Kasuri methi is dried fenugreek leaves. It is easily available in most Asian or Indian grocery stores. You can find Kasuri methi in the spices section.

HOW TO MAKE PANEER IN VEGGIE SAUCE VEGAN

For vegan paneer in the veggie sauce you can use the following substitute for paneer, butter, and cream:

Use tofu instead of paneer. Medium Tofu tastes great in this recipe. 

Skip the butter and add your choice of plant-based oil or vegan butter.

Instead of cream, you can use coconut cream or cashew paste for the creamy texture.

Soak 8-10 cashews in warm water for cashew paste for 30 minutes. Grind to a smooth paste. Add this cashew paste at the end.

HOW TO MAKE PANEER IN VEGGIE SAUCE NUT-FREE

Skip the cashews and use cream or coconut cream. 

HOW TO SERVE PANEER IN VEGGIE SAUCE

I like to serve paneer in veggie sauce with some Indian flatbread such as tandoori roti, paratha, or naan. But this dish goes well with steamed Basmati Rice or brown rice as well.

Pair it with Aloo Gobi [Potato Cauliflower Curry], Bharwa Bhindi [stuffed okra], Nav Dhan Dal [9 mix lentils and beans], or Dal Makhani [Madras Lentils] and you have a feast.

HOW TO STORE PANEER IN VEGGIE SAUCE

Paneer in veggie sauce stays fresh for 3-4 days in the refrigerator. If planning on storing, do not add paneer or cream. Add the paneer and cream, just before serving.

Paneer in veggie sauce freezes well too. Skip the paneer, and cream if freezing this dish. Freeze the sauce in a freezer-safe container. Freeze paneer in a separate freezer-safe container or Ziploc bag. Veggie sauce and paneer stay good for up to 3 month in the freezer. Defrost the sauce and paneer in the refrigerator overnight. Reheat and serve. If desired add some cream before serving.

Pic Shown: Paneer In The Veggie Sauce

Paneer in veggie sauce

 

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Paneer in veggie sauce

Paneer In Veggie Sauce

Jyoti Behrani
The BEST and incredibly creamy Paneer in the veggie sauce! The luscious veggie-based sauce has a unique restaurant-style flavor for all you paneer lovers. A great way to sneak in some extra veggies for those kiddos and picky eaters!
5 from 5 votes
Print Recipe Pin Recipe
Prep Time 10 minutes mins
Cook Time 30 minutes mins
Total Time 40 minutes mins
Course Main Course
Cuisine Indian
Servings 4
Calories 384 kcal

Ingredients
  

INGREDIENTS FOR PANEER IN VEGGIE SAUCE

FOR THE VEGGIE SAUCE

  • 1 medium onion, quartered
  • 3 medium tomatoes, quartered
  • 1 medium zucchini, roughly chopped
  • 1 small red or yellow or orange bell pepper, roughly chopped;
  • 2 small carrots, roughly chopped
  • 3-4 cloves garlic, crushed
  • ½ inch ginger, chopped
  • 1-2 green chili; adjust to taste
  • a handful of unsalted whole cashews (about 12-15 cashews)
  • 1 tablespoon tomato paste (optional)
  • 1 teaspoon oil
  • 1-2 whole green cardamom
  • 2 teaspoon coriander powder
  • ½ teaspoon red chili powder, adjust to taste
  • ¼ teaspoon turmeric powder
  • ½ cup water
  • salt to taste

FOR THE PANEER IN VEGGIE SAUCE

  • 12 oz paneer, cut into triangle or square shape
  • 1 teaspoon kasuri methi
  • 2 tablespoon butter or ghee
  • 5-6 whole cashews, halved (optional) 
  • ¼ teaspoon Kashmiri chili powder (optional); For color
  • 1 green chili, slit into two
  • ¼ teaspoon garam masala, adjust to taste
  • 1-2 tablespoon fresh cream (optional)
  • 1 teaspoon honey (optional)
  • salt to taste
  • 2 cups warm water

FOR THE GARNISH

  • 1-2 teaspoon fresh cream
  • roasted cashews halved

Instructions
 

PREP FOR PANEER IN VEGGIE SAUCE

  • Cut the paneer into triangle or square shape. Place the paneer pieces in warm water. Set it aside.
  • Chop the veggies in chunks – onion, tomato, zucchini, bell pepper, and carrots.
  • Crush the garlic pods, chop or grate ginger.

STOVETOP PANEER IN VEGGIE SAUCE

  • Heat oil in pan over medium-high heat. Add onions, crushed garlic and sauté for 1-2 minutes.
  • Next add tomato, zucchini, bell pepper, carrots, green chili, ginger, and tomato paste (optional). Sauté for 2-3 minutes on high heat, stirring frequently.
  • Now add coriander powder, red chili powder, salt to taste, cashews, and green cardamom. Sauté for 30 seconds, stirring frequently. Add water and deglaze the pan.
  • Cover the pan with the lid, reduce the heat, and simmer for 20-25 minutes or until the veggies are soft and cooked.
  • Turn OFF the heat. Remove the lid, and allow the mixture to cool down.
  • Using a hand blender, blend the mixture to a fine puree.
  • (Optional) Strain the puree through a fine mesh strainer for a nice creamy, smooth veggie puree.
  • Transfer the veggie puree to a bowl. Heat butter or ghee in the pan.
  • (optional) Add halved cashews and fry for 30 seconds or until lightly golden brown. Remove the cashews on a plate and set it aside.
  • Add slit green chili, Kashmiri red chili powder (optional). Immediately pour the veggie puree and cover with the lid. Reduce the heat to medium-low and simmer the sauce for 2-3 minutes, stirring occasionally.
    Note: Be careful as the veggie sauce may splatter. Use a splatter screen or lid to prevent any splashes.
  • Drain the paneer from the warm water and add it to the sauce. Simmer the paneer in the veggie sauce for 2-3 minutes or until heated through.
  • Add garam masala, cream (optional), honey (optional), and crushed kasuri methi. Give it a good stir.
  • Turn OFF the heat. Transfer the paneer in the veggie sauce to a serving dish. Garnish with some fresh cream and roasted cashews (optional).

INSTANT POT PANEER IN VEGGIE SAUCE

  • Turn ON SAUTE (more). When the screen displays “HOT” and oil. Add onions, crushed garlic and sauté for 1-2 minutes.
  • Next add tomato, zucchini, bell pepper, carrots, green chili, ginger, and tomato paste (optional). Sauté for 2-3 minutes on high heat, stirring frequently.
  • Now add coriander powder, red chili powder, salt to taste, cashews, and green cardamom. Sauté for 30 seconds, stirring frequently. Add water and deglaze the pan.
  • Cancel SAUTE. Close the lid, set the pressure value to sealing. Turn ON PRESSURE COOK (high) for 15 minutes.
  • Allow 10 minutes of natural pressure release. After 10 minutes, release the pressure manually and open the lid.
  • Take out the inner pot, and allow the mixture to cool down.
  • Using a hand blender, blend the mixture to a fine puree.
  • (Optional) Strain the puree through a fine mesh strainer for a nice creamy, smooth veggie puree.
  • Transfer the veggie puree to a bowl. Turn ON SAUTE (more). Heat butter or ghee.
  • (optional) Add halved cashews and fry for 30 seconds or until lightly golden brown. Remove the cashews on a plate and set it aside.
  • Add slit green chili, Kashmiri red chili powder (optional). Immediately pour the veggie puree and cover with the lid. Simmer the sauce for 2-3 minutes, stirring occasionally.
    Note: Be careful as the veggie sauce may splatter. Use a splatter screen or lid to prevent any splashes.
  • Drain the paneer from the warm water and add it to the sauce. Simmer the paneer in the veggie sauce for 2-3 minutes or until heated through.
  • Add garam masala, cream (optional), honey (optional), and crushed kasuri methi. Give it a good stir.
  • Turn OFF SAUTE. Transfer the paneer in the veggie sauce to a serving dish. Garnish with some fresh cream and roasted cashews (optional).

STOVETOP PRESSURE COOKER PANEER IN VEGGIE SAUCE

  • Follow the directions for Instant Pot cooking. Close the lid, place the whistle (weights). After the first whistle reduce the heat to low and cook for 15 minutes. Allow 10 minutes for natural pressure release and release the pressure manually. Rest of the recipe is same as Instant Pot.

Notes

Please refer to the post for the following:
  1. Tips For Delicious Paneer In The Veggie Sauce
  2. Frequently Asked Questions

Nutrition

Nutrition Facts
Paneer In Veggie Sauce
Amount per Serving
Calories
384
% Daily Value*
Fat
 
31
g
48
%
Saturated Fat
 
18
g
113
%
Trans Fat
 
0.01
g
Polyunsaturated Fat
 
1
g
Monounsaturated Fat
 
3
g
Cholesterol
 
75
mg
25
%
Sodium
 
170
mg
7
%
Potassium
 
531
mg
15
%
Carbohydrates
 
19
g
6
%
Fiber
 
5
g
21
%
Sugar
 
9
g
10
%
Protein
 
15
g
30
%
Vitamin A
 
6648
IU
133
%
Vitamin C
 
62
mg
75
%
Calcium
 
460
mg
46
%
Iron
 
1
mg
6
%
* Percent Daily Values are based on a 2000 calorie diet.

Disclaimer

Nutrition values are my best estimates. If you rely on them for your diet, use your preferred nutrition calculator.

Tried this recipe?Mention @livingsmartandhealthy or tag #livingsmartandhealthy
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Comments

  1. Dana says

    August 23, 2022 at 3:08 pm

    5 stars
    This looks so good! Can't wait to try it. The sauce sounds top notch.

    Log in to Reply
    • Jyoti Behrani says

      August 23, 2022 at 3:36 pm

      Hi Dana,
      Yes, we love this paneer in veggie sauce. Hope you like it too 🙂

      Log in to Reply
  2. Beth says

    August 23, 2022 at 3:19 pm

    5 stars
    This is wonderful! Delicious and I always love tasty dishes that are also healthy!

    Log in to Reply
    • Jyoti Behrani says

      August 23, 2022 at 4:27 pm

      Thank you Beth! So glad to know that you liked my recipe 🙂

      Log in to Reply
  3. Jess says

    August 23, 2022 at 3:19 pm

    5 stars
    My husband and I are trying to eat less meat so I am on the lookout for all things vegetarian and came across your recipe. It is perfect!

    Log in to Reply
    • Jyoti Behrani says

      August 23, 2022 at 3:35 pm

      Hi Jess,
      I am so glad you liked my recipe!

      Log in to Reply
  4. Aimee Mars says

    August 23, 2022 at 3:19 pm

    5 stars
    Ohhhh the veggie sauce is divine! Each bite was a special treat!

    Log in to Reply
    • Jyoti Behrani says

      August 23, 2022 at 4:26 pm

      Great! I am so glad you liked the recipe!

      Log in to Reply
  5. Beth says

    August 23, 2022 at 3:47 pm

    5 stars
    This looks absolutely amazing! I recently started trying my hand at more exotic food like this (for me, anyway), and I can't wait to try this.

    Log in to Reply
    • Jyoti Behrani says

      August 23, 2022 at 4:25 pm

      Thanks Beth! Hope you like it as much as we do 🙂

      Log in to Reply
5 from 5 votes

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Hi, I'm Jyoti!

Glad to meet you! Here you will find quick and easy weeknight dinners to more complex dishes for special occasions. I love cooking with fresh, seasonal ingredients.

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