First we will cook the onions and tomato paste in a pressure cooker
Place pressure cooker on flame
Once hot, add 1 tsp oil - this is all the oil you will use in this entire recipe
Once oil is hot, add bayleaf, stir it in the oil for a few seconds
Lower flame, add onions and tomato paste ( Do note - I use tomato paste not tomato puree as it gives better colour and taste to the dish)
Add 1 measuring cup water
Mix ingredients well
Close pressure cooker lid, place weight
Put flame on high and cook for 4 whistles
After 4 whistles allow pressure cooker to cool down before opening it
Place a kadai/wok on flame
Add the cooked mixture from the pressure cooker to the wok and put flame on high
Add garlic paste
Add ginger paste
Mix well
Keep the flame high as you keep stirring
Once mixed well, add coriander powder, jeera powder, chilli powder, ground black pepper
Add salt as per your taste
Mix well
Keep stirring to cook till mixture dries and thickens - cook on high flame for a few mins then cook on medium flame
Once mixture is cooked, add the green chillies, garam masala and brown sugar
Continue to stir and cook the mixture
Cook for another 10 minutes. Time could vary slightly - The mixture should be dry and cooked (You can taste a small quantity to check if cooked)
Once cooked, Add 1.5 measuring cups of water
Stir well
Bring to boil
Once the mixture is boiling add the capsicum/peppers
Lower flame, cover and cook for a few minutes
Cover and cook till capsicum is cooked
Once the capsicum is cooked and soft, add the paneer
Cover and cook on low flame for 2-3 mins - this would allow paneer to absorb the flavours Please note - Kadai Paneer tastes best when the gravy is thick. If you want, you can add more paneer, but the texture of the gravy should be thick
Transfer the Kadai Paneer to a serving dish and garnish with coriander leaves
Enjoy with roti / naan or Indian bread of your choice!