Kadai Mushroom Recipe (3 Ways)

Kadai Mushroom is such a super easy and delicious dish of sautéed button mushrooms, onions, bell peppers (capsicum) in a spiced, tangy tomato sauce. The recipe comes together in 30 minutes and so delish with naan, roti and even bread rolls.

Mushrooms, spices, onions, tomatoes and bell peppers – their combination never goes wrong.

Here I shared three variations of making this dish:

1. Semi-dry recipe: Stove-top recipe made in the kadai (wok).
2. Instant Pot version: Quick method in the Instant Pot.
3. Stove-top method: Gravy recipe of kadai mushroom made on stove-top

You can make either of them as per your preference or the gadgets you have. All the three recipes are easy and taste good.

What is Kadai Mushroom

Kadai Mushroom as the name implies is made of two words Kadai and Mushroom. In Hindi language the word “Kadai” or “Kadhai” refers to a dish resembling the Chinese wok.

The Indian kadai does look like the Chinese wok but is much deeper than the wok. As the entire mushroom dish is made in the kadai and hence the name Kadai Mushroom.

In India the kadai (kadhai, karahi) is used for sautéing veggies, for making Indian sweets and also for deep frying. It is one multi purpose pan which is found in every Indian kitchen.

Additional ingredients like onions, tomatoes and green bell peppers are also added in the dish.

A special and unique spice blend called as “kadai masala” is also added. The kadai masala is freshly pounded and added in the dish.

Whenever you make any kadai recipe from any veggie or paneer or tofu, then always always freshly pound or powder the spices.

They add such an aroma and flavor to the food that is not possible when you use readymade or store-brought spice powders.

About this recipe

The semi-dry version of Kadai Mushroom tastes so good. As mentioned above, freshly roasted and pounded spices called as kadai masala is added.

The spices that I add in the kadai masala are coriander seeds, cumin seeds, dry red chilies, cloves, cinnamon, green cardamom, black pepper and mace (optional).

The lemony citrus notes of ground coriander seeds is distinctly felt in the dish. The red chillies impart a bright orange-red color as well as some heat and spice. The acidity and tang comes from the tomatoes.

Generally kadai mushroom is not a hot or spicy dish as the dried red chillies added to it are not of the pungent kind.

I have used dried byadagi chillies in the recipe which are less hot and give a deep color. Byadagi chillies are an Indian variety of red chillies that are grown in Karnataka.

You can also easily add dried kashmiri red chillies. Dried kashmiri red chillis give a good color and spice to the dish without making it too hot or pungent.

This Kadai Mushroom recipe can be made spicy and hot depending on the kind of dried red chillies you add. So if you use hot chilies, the curry will be hot. If you use less hot and pungent chilies, the gravy will not be hot.

So depending on the heat in the chilies, you can decrease or increase their amount.

This delicious Kadai Mushroom has been adapted from the popular restaurant style Kadai Paneer Recipe on the blog.

To make this dish satvik & onion-garlic free,  you can easily skip onion and garlic. It will still taste delicious.

You can serve it with some roti or naan or paratha and accompanied by a salad.

How to make Kadai Mushroom

Making Kadai Masala

1. First dry roast all the spices for the kadai masala on a low flame in a kadai or pan till fragrant.

The spices are – 1 tbsp coriander seeds, ½ tsp cumin seeds, 3 to 4 dry red chilies, 2 cloves, ½ inch cinnamon, 1 green cardamom, 3 to 4 black pepper and 1 single strand of mace (optional).

2. Once the spices cool down, add them to a grinder jar.

3. Grind to a semi fine powder. You can also grind to a fine powder.

4. Keep the ground kadai masala aside.

5. In the same jar, add chopped tomatoes (2 medium to large tomatoes, pureed, about ¾ cup tomato puree. Use tomatoes which are ripe, red and not too tangy).

6. Blend the tomatoes to a smooth puree. Keep aside. No need to add water while making the puree.

7. Slice 200-250 grams button mushrooms. Slice 1 medium to large capsicum (bell pepper) thinly. Chop the onions (1 medium onion, about ½ cup finely chopped onion). Keep aside.

Sauteing mushrooms

8. Heat 3 tbsp oil in a kadai/wok or pan. Add the sliced mushrooms.

9. Stir & saute the sliced mushrooms. First you will see the mushrooms releasing a lot of water.

10. After some minutes, the water evaporates. Saute till the mushrooms get browned from the edges.

11. Remove the mushrooms and keep aside.

Making kadai mushroom dry

12. In the same oil, add finely chopped onions.

13. Saute the onions till they turn translucent or light golden.

14. Add 1 teaspoon ginger-garlic paste (1 inch ginger + 3 to 4 small to medium-szied garlic, crushed in a mortar-pestle). Stir and saute till the raw aroma of ginger-garlic goes away.

15. Add the tomato puree (about ¾ cup).

16. Stir and saute.

17. Saute till you see some oil releasing from the sides.

18. Add the sliced capsicum/bell pepper (1 medium to large capsicum). You can even green bell pepper or red or yellow bell pepper.

19. Mix and sauté for 5 to 6 minutes on a low flame.

20. Add the ground kadai masala which we made. You can also add ¼ tsp turmeric powder at this step. Adding turmeric powder is optional though.

21. Mix very well.

22. Then add ½ cup of water.

23. Season with salt.

24. Bring the gravy to a simmer on a low flame till you see a few specks of oil floating on top.

25. Add the sauteed mushrooms (200-250 grams).

26. Mix again.

27. Lastly add 1 tsp crushed kasuri methi (dry fenugreek leaves) to kadai mushroom. Switch off the stove. If you want you can also add 1 or 2 tbsp cream to tone down the tang. You can also add about ¼ tsp of garam masala powder.

28. Mix and then serve Kadai Mushroom hot with roti, paratha or naan. While serving you can garnish with ginger julienne and chopped coriander leaves (cilantro).

Tips & Substitutes for Best Kadai Mushroom

• Roasting spices: The spices are roasted till they are aromatic. Do not brown them too much or burn them.
• Mushrooms: I have used white button mushrooms, but you can use any variety of fresh edible mushrooms.
• Dried red chillies: The color, spice, pungency and heat factor in the dish depends on the type of red chilies used. Thus use chillies which have a low heat quotient like Kashmiri chillies or Byadagi chillies. These chillies are low in heat and also give a deep orange color to the dish. But if you like a spicy dish you can use medium-hot red chilies – just reduce their quantity.
• Bell pepper: Apart from dry red chilies, the recipe also uses capsicum or green bell pepper, which is a must and an essential ingredient. You can even use red or yellow bell peppers.
• Tomatoes: Use tomatoes which are not very tart or sour. You can even use packaged tomato puree. When using packaged tomato puree, add some more water as they have a thick consistency.

More Tasty Mushroom Recipes

Peas Recipes

Matar Mushroom

Rice Recipes

Spicy Mushroom Biryani and Chettinad Mushroom Biryani (2 Ways)

Mushroom Recipes

Mushroom Masala | Mushroom Curry (Punjabi Style)

Soup Recipes

Mushroom Soup Recipe (Cream of Mushroom Soup)

Please be sure to rate the recipe in the recipe card or leave a comment below if you have made it. For more vegetarian inspirations, Sign Up for my emails or follow me on Instagram, Youtube, Facebook, Pinterest or Twitter.

About Instant Pot Kadai Mushroom

In this recipe, the kadai is replaced with the instant pot. Hence the recipe gets done in less time and quickly.

Even though I have used an instant pot, I have kept the name as Instant pot kadai mushroom, just so that readers can identify the recipe easily.

In this recipe too, the unique blend of ground spices called kadai masala is made and added. This kadai masala gives a distinct taste, aroma and flavor to the dish.

I have kept this recipe and the cooking process really simple so that the recipes take less time.

The recipe tastes exceptionally good if you add fried or sautéed mushrooms to the gravy. But sautéing mushrooms till golden takes quite some time, so I have sautéed them for a few minutes and then pressure cooked in the instant pot.

Step by Step Instant Pot Kadai Mushroom

Making kadai masala

1. First we need to make the kadai masala. Heat a small kadai or a pan. Add the whole spices – 1 tablespoon coriander seeds, ½ teaspoon cumin seeds, 1-inch cinnamon, 2 cloves, 2 green cardamoms, 3 to 4 Kashmiri red chilies or 2 to 3 dry red chillies.

2. Dry roast all the whole spices on a low flame till they become aromatic. Stir them often while roasting.

Roasting the masala takes about 1 to 2 minutes. In a thick bottomed kadai or pan, roasting takes about 2 minutes on a low flame.

3. Once they cool down, add them to a grinder jar or a spice or coffee grinder.

4. Grind to a semi-fine or a slightly coarse powder.

5. Remove in a plate and keep the kadai masala aside.

Sautéing

1. Switch on the instant pot. Press the sauté button for 15 to 20 minutes on the normal mode.

2. Add 3 tablespoons oil in the steel insert of the instant pot. When the oil becomes hot, add ⅓ cup chopped onions. The oil should just be hot and not sizzling hot or smoking hot.

3. Sauté stirring often, till the onions soften and become translucent.

4. Then add ½ teaspoon garlic paste, 1 teaspoon finely chopped ginger, 1 slit green chilli or serrano pepper.

5. Mix and sauté for 3 to 4 seconds.

6. Add 1 cup finely chopped tomatoes.

7. Sauté till tomatoes soften and become pulpy.

8. Add sliced button mushrooms (200 to 250 grams).

9. Mix very well and deglaze the pot. Scrap any stuck bits of ingredients from the bottom of the pot. The moisture from the mushrooms helps in deglazing.

10. Sauté for a couple of minutes.

11. Add ¼ teaspoon turmeric powder and salt as required. Mix again well.

12. Add ½ cup of water. Deglaze if required.

Pressure cooking

13. Press cancel and press the pressure cook or manual button. Set the timer to pressure cook for 3 minutes on high pressure.

14. Then do a quick pressure release by lifting the valve. Open the lid.

15. Then add capsicum and ground kadai masala and 1 teaspoon kasuri methi (crushed).

You can reserve ½ teaspoon of kadai masala for garnish. Kasuri methi is dried fenugreek leaves. If you do not have kasuri methi then skip it.

16. Mix very well.

17. Press the sauté button for 5 to 6 minutes on normal mode.

18. Sauté for 5 to 6 minutes. Stir often. You can reduce to the low setting if the masala sticks to the pan or heat becomes too much.

19. Sauté till the capsicum is half-cooked. There should be some crunch in the capsicum. If the consistency looks very dry, then you can add some hot water.

20. Add 1 to 2 tablespoon chopped coriander leaves. Mix well.

21. Serve the Instant Pot Kadai Mushroom gravy garnished with few coriander leaves and ginger julienne (optional). Serve with chapati, tandoori roti, naan or dinner rolls or bread. Also sprinkle the kadai masala, if you have reserved it while serving.

Stovetop gravy recipe

Ingredients Required:

To be ground to a paste:

• 135 grams onions OR 2 medium to large onions OR 1 cup heaped roughly chopped onions
• ½ inch ginger OR 2 to 2.5 grams ginger OR 1 teaspoon chopped ginger
• 5 to 6 garlic OR 4 grams garlic OR 1 teaspoon chopped garlic
• 250 grams tomatoes OR 3 medium to large tomatoes OR 1.5 cup chopped tomatoes

Whole spices for kadai masala:

• 1 tablespoon coriander seeds
• ½ teaspoon cumin seeds
• 1 inch cinnamon
• 2 cloves
• 2 green cardamoms
• 6 to 7 whole black pepper
• 4 to 5 dry red chilies or kashmiri red chilies

For gravy:

• 3 tablespoons oil
• 1 tej patta (indian bay leaf)
• ½ teaspoon turmeric powder
• ½ teaspoon red chili powder or deghi mirch or kashmiri red chili powder
• 200 to 250 grams white button mushrooms – chopped or sliced
• 90 to 100 grams capsicum OR 1 medium to large capsicum or 1 cup thinly sliced capsicum (green bell pepper)
• ¾ to 1 cup water or add as required
• ½ to 1 teaspoon crushed kasuri methi (dry fenugreek leaves)
• 2 tablespoon chopped coriander leaves (cilantro leaves)
• ½ inch ginger – julienne
• 2 tablespoon cream (optional)
• salt as required

INSTRUCTIONS:

Making kadai masala:

1. Heat a pan or kadai. Take all the whole spices mentioned under the “whole spices for kadai masala’ list in the pan.
2. Dry roast all the whole spices on a low flame till they become aromatic. Stir them often while roasting.
3. Once the spices cool down, add them to a grinder jar or a spice or coffee grinder. Grind to a fine powder.
4. Remove in a plate and keep the kadai masala aside.

Preparing onion and tomato paste:

1. in the same grinder jar, add 1 cup heaped roughly chopped onions. grind to a smooth paste. Remove and keep the onion paste in a bowl.
2. to the same jar, now add 1.5 cup chopped tomatoes, 1 tsp chopped ginger and 1 tsp chopped garlic.
3. grind to a smooth paste. keep aside.

Making kadai mushroom gravy:

1. Heat 3 tbsp oil in a kadai or wok. add 1 tej patta and saute for two to three seconds.
2. Add the ground onion paste. saute stirring at intervals, till the onion paste becomes golden. For a quick cooking of the onion paste, add a pinch of salt.
3. Once the onion paste turns golden, then add the tomato paste.
4. Saute the tomato paste till you see oil specks on top or leaving the sides of the paste.
5. The masala will also thicken and leave the sides of the pan.
6. Then add ½ tsp turmeric powder and ½ tsp red chili powder or deghi mirch or kashmiri red chili powder. mix very well.
7. Add sliced or chopped mushrooms.
8. Mix the mushrooms very well with the masala and saute for 2 to 3 minutes on a medium flame.
9. Add the ground kadai masala along with salt.
10. Add ¾ to 1 cup water. mix again very well.
11. Cover the kadai or pan with a lid and simmer on a low to medium flame for 6 to 7 minutes.
12. Then add 1 cup thinly sliced capsicum.
13. Simmer without a lid, till the capsicum is half cooked and still have their crunch. cook for about 6 to 7 minutes. you can also cook for some more time if you want.
14. Then add 1/2 to 1 tsp crushed kasuri methi. At this step you can also add 2 to 3 tbsp cream, if you prefer.
15. Lastly add 2 tbsp chopped coriander leaves and ½ tsp ginger julienne.
16. Stir and then serve kadai mushroom gravy hot with chapatis, tandoori rotis, naan or bread. You can also serve with steamed rice or cumin rice or peas pulao.

This kadai mushroom recipe is from the archives (September 2012) and has been republished and updated on 14th June 2020.