Paneer Capsicum Stir-fry at Home

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(Updated on March 09, 2023)

Paneer Capsicum Stir-Fry, also known as Capsicum Paneer Sabzi, is a delicious vegetarian appetizer recipe. Requiring a few ingredients, this flavourful dish comes together effortlessly and gets ready within 10 minutes.

In this one-pan recipe, cubes of paneer and capsicum are sautéed over high heat and flavoured with an assortment of spices and seasonings. It is bursting with spicy and savoury flavours, with a slight pungent sharpness from the black pepper. 

Make this simple paneer capsicum stir-fry when you want something quick and easy. You can relish it as a side dish, pack it in lunch boxes, or serve it to guests. It already does not require a lot of prep, and with Zilli’s Cold Pressed Spices, you can save even more time.

Try this lip-smacking paneer capsicum stir-fry with our step-by-step recipe.

Preparation Time: 2 minutes.

Cooking Time: 8 minutes.

Serves: 2 people.

Course: Side Dish, Snack.

Cuisine: Indian.


  • Garnishing:
      • 6-7 onion rings.
      • 2 slices of lemon.

    How to Make Paneer Capsicum Stir-Fry:

    1. Heat oil in a wok or pan over a high flame.
    2. Add the paneer cubes and cover with a lid for a minute. 
    3. Remove the lid and stir-fry the paneer while turning the pieces to cook it from all sides.
    4. Sauté the paneer till it turns light brown on each side.
    5. Add the chopped capsicum and green chillies, and toss well.
    6. Cover with a lid again to cook for a minute.
    7. Remove the lid and mix the paneer and capsicum together.
    8. Sprinkle salt and mix to combine. Place the lid and cook for another minute.
    9. Add black pepper powder, garlic powder, and red onion powder. Stir well to coat the capsicum and paneer properly.
    10. Cook over high flame for a minute. Turn the heat off and give it a quick stir. 
    11. Transfer the paneer and capsicum stir-fry to a serving bowl or plate.
    12. Garnish with onion rings and lemon slices, and serve with green chutney on the side.

    Your Paneer Capsicum Stir Fry is ready to be enjoyed!

    Tips and Variations for Paneer Capsicum Stir-Fry: 

    Cooking the paneer for a good minute before you stir or flip will help reduce sticking or breaking.

    Ensure your pan or wok is hot when you sauté the capsicum. Avoid overcooking on low heat for too long. It ensures that they lose their rawness but stay crunchy. 

    Use fresh and good-quality paneer. As always, homemade works best. If using frozen paneer, remember to defrost it in hot water. 

    You can use red and yellow bell peppers to make this paneer bell pepper stir fry.

    You can add assorted veggies, such as carrots, corn, baby corn, zucchini, cabbage, etc., to this recipe.

    Variations for Paneer Capsicum Stir-Fry:

    Vegan Version: To make this recipe vegan, you can use firm or extra firm tofu instead of paneer.

    Paneer Capsicum Sandwich: Stuff this paneer capsicum stir-fry between two slices of bread and toast to make a delicious sandwich.

    Paneer Capsicum Wraps: Use this stir-fry as a filling in your roti, wraps, or tortillas to make delectable paneer capsicum wraps (kathi rolls).

    Paneer Capsicum Fried Rice/Noodles: Toss this paneer capsicum stir-fry with your cooked rice and veggies or al dente noodles for a delightful main course meal.

    Paneer Capsicum Curry Recipe:

    • Turn this simple stir-fry into a wholesome capsicum and paneer curry.
    • Sauté capsicum and paneer and keep aside. Cook tomatoes, Zilli’s Ginger Powder, onion powder, garlic powder, coriander, cashews, dry red chillies, cumin seeds, red chilli powder, and turmeric powder in oil for 2 mins. Transfer to a bowl and let it cool. Blend into a fine paste in a mixer grinder or blender jar. 
    • Transfer to a kadhai and bring this pureed mixture to a simmer. Pour in water and bring the curry to a boil. Mix in salt and garam masala. Add the capsicum and paneer and cook it down till it reaches gravy consistency. Garnish the paneer capsicum curry with crushed kasuri methi and chopped coriander leaves, and enjoy. 

    Serving Ideas: 

    Serve the Paneer Capsicum Stir-Fry hot with green chutney on the side.

    You can enjoy it straightaway with a fork or scoop it up with roti, paratha, or naan.

    It also pairs well as a side dish with dal-rice or pulao.


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