Kadai paneer is a traditional dish that's cooked in a unique wok called kadai, hence the name. The dish is made by cooking paneer cheese and bell peppers with freshly ground spices called kadai masala. There are two main versions of the dish – wet (with gravy) and semi-dry.

The kadai masala spices contain red chili peppers, cardamom, cinnamon, fennel, cloves, and coriander seeds. Other ingredients in the dish include onions, ginger, and tomatoes for the thick gravy. Before serving, it's recommended to let kadai paneer rest in order to absorb flavors.