Paneer Curry Recipe- Authentic South Indian Coconut & Spice Blend

Last Updated on 2 months by Neha Deshmukh

Paneer Curry Recipe: Authentic South Indian Coconut & Spice Blend

Hey everyone! If you’re anything like me, you absolutely love a good curry. And this Paneer Curry? It’s a little slice of South Indian heaven. I first made this when I was trying to recreate a dish my neighbour, Aunty Devi, used to make – and honestly, it took a few tries, but this recipe is as close as I’ve gotten! It’s packed with flavour, wonderfully creamy from the coconut, and has a beautiful warmth from the spices. Get ready to transport your tastebuds!

Why You’ll Love This Recipe

This isn’t your average paneer curry. We’re diving deep into South Indian flavours here, with a homemade spice blend that makes all the difference. It’s a little bit of effort, but trust me, the result is so worth it. You’ll love it because:

• It’s bursting with authentic South Indian taste.
• The coconut-based gravy is incredibly rich and flavourful.
• It’s a comforting and satisfying meal.
• It’s surprisingly adaptable to your spice preference!

Ingredients

Here’s what you’ll need to create this deliciousness:

• 1 tablespoon oil
• 2 tablespoons coriander seeds
• 0.5 tablespoon cumin seeds
• 1 teaspoon fennel seeds
• 0.25 teaspoon mustard seeds
• 0.25 teaspoon black peppercorns
• 5-6 fenugreek seeds
• 5 byadagi red chilies
• 15-16 curry leaves
• 0.25 cup chopped onion
• 7-8 medium garlic cloves
• 0.5 inch ginger
• 0.5 teaspoon tamarind
• 0.25 teaspoon turmeric
• 1 cup fresh grated coconut
• 3 tablespoons oil
• 0.5 teaspoon mustard seeds
• 0.5 cup chopped onion
• 10-12 curry leaves
• 1 teaspoon jaggery powder (optional)
• 200 grams paneer, cubed
• 2 tablespoons coriander leaves, chopped

Ingredient Notes

Let’s talk ingredients! A few things will really elevate this curry:

• Byadagi Red Chilies: These are key for that beautiful colour and mild heat. They’re not super spicy, so don’t be shy! If you can’t find them, Kashmiri red chilies are a good substitute.
• Fresh Coconut: Seriously, don’t skip this if you can help it. The flavour of fresh coconut is unmatched. Grating it is a little work, but it makes a huge difference.
• South Indian Spice Blend: The combination of coriander, cumin, fennel, and fenugreek is what gives this curry its unique character. Toasting the spices really wakes up their flavours, so don’t skip that step!
• Tamarind: Adds a lovely tanginess. You can use tamarind paste if you don’t have whole tamarind.
• Jaggery: This is optional, but it adds a subtle sweetness that balances the spices beautifully. Brown sugar can be used as a substitute.

Step-By-Step Instructions

Alright, let’s get cooking!

1. Spice it Up: Heat 1 tablespoon of oil in a heavy kadai (or deep pan). Add the coriander seeds, cumin seeds, fennel seeds, mustard seeds, black peppercorns, fenugreek seeds, red chilies, and curry leaves. Fry for about 2 minutes, until fragrant and the mustard seeds start to splutter.
2. Make the Paste: Add the chopped onions, garlic, ginger, tamarind, and turmeric to the kadai. Sauté until the onions turn translucent. Let it cool completely, then grind into a fine paste with a little water.
3. Coconut Magic: Blend the fresh coconut with about ½ cup of water to create a smooth paste. Set aside.
4. Tempering Time: Heat 3 tablespoons of oil in a separate pan. Crackle the mustard seeds, then sauté the onions and curry leaves until translucent.
5. Build the Flavour: Add the spice paste to the pan and cook until the oil starts to separate from the mixture – this is a sign that it’s cooked through. Stir in the coconut paste, jaggery (if using), and about 1 cup of water. Simmer for about 5 minutes, stirring occasionally.
6. Paneer Time: Gently add the paneer cubes to the curry and simmer for another 2 minutes, allowing the paneer to absorb all those wonderful flavours.
7. Garnish & Serve: Garnish with fresh coriander leaves and serve hot!

Expert Tips

• Don’t Overcook the Paneer: Paneer can become rubbery if overcooked. Just a gentle simmer is all it needs.
• Adjust the Spice: Feel free to adjust the number of red chilies to your liking.
• Use a Good Quality Kadai: A heavy-bottomed kadai helps to distribute heat evenly and prevents the curry from sticking.

Variations

• Vegan Adaptation: Swap the paneer for firm or extra-firm tofu (pressed to remove excess water) or your favourite vegetables like cauliflower, potatoes, or even mushrooms.
• Gluten-Free: This recipe is naturally gluten-free! Just double-check your spice blends to ensure they haven’t been processed with any gluten-containing ingredients.
• Spice Level Adjustment: Reduce the number of byadagi red chilies for a milder curry, or add a pinch of cayenne pepper for extra heat. My friend, Priya, loves to add a finely chopped green chili for a fresh kick!

Festival Adaptations

This Paneer Curry is a wonderful addition to any South Indian festival spread! It’s often made during special occasions like Pongal or Onam, as it’s considered a festive and auspicious dish.

Serving Suggestions

This curry is amazing with:

• Steaming hot rice (a must!)
• Fluffy idlis or dosas
• Warm rotis or parathas
• A side of raita to cool things down

Storage Instructions

Leftovers can be stored in an airtight container in the refrigerator for up to 3 days. Reheat gently on the stovetop or in the microwave. The flavours actually develop even more overnight!

FAQs

What type of paneer works best in this curry?

I prefer using fresh, soft paneer. It holds its shape well and absorbs the flavours beautifully. You can also use store-bought paneer, but make sure it’s not too firm.

Can I make the spice paste ahead of time? How should I store it?

Absolutely! You can make the spice paste a day or two in advance. Store it in an airtight container in the refrigerator.

What is the best way to balance the sweetness with the jaggery?

Start with a small amount of jaggery (1 teaspoon) and taste as you go. You can always add more if needed. The goal is to have a subtle sweetness that complements the spices, not overpower them.

Can I use coconut milk instead of fresh coconut? What adjustments should I make?

Yes, you can! Use about 400ml (1 can) of full-fat coconut milk. You might need to simmer the curry for a slightly longer time to allow the flavours to meld.

What side dishes complement this paneer curry perfectly?

Besides rice, idli, or roti, a simple cucumber raita or a side of papadums would be fantastic!