This Mushroom Paneer Bell Pepper – Instant Pot Mushroom is an awesome vegetarian, an incredibly satisfying one pot meal: savory, appetizing, inviting, and not too heavy. This dish also makes excellent leftovers.
First and foremost, paneer is versatile. I deem paneer a blank canvas. It can take on pretty much any flavor you want depending on what you cook it with.
How to clean and chop mushrooms and bell pepper for this Mushroom Paneer Bell Pepper – Instant Pot Mushroom?
Brush off bits of soil and debris with mushroom brush or a paper napkin. Then place whole mushrooms in a colander give them a swift but good rinse. Dry with paper towels. There is no need to soak the mushrooms in water.
Carefully slice off the stem with a sharp knife, then place the cap cut-side down and slice it into halves.
The bell pepper (capsicum) need to be diced to 3 inch cubes.
You can use any color bell-peppers. I have used red bell peppers.
What is paneer?
Paneer is a squeaky, fresh cheese from the Indian subcontinent. It is a vegetarian’s companion and is made by curdling milk with a vegetable-derived acid, for instance lemon juice. It has a milky flavor. You can make paneer at home; however, I buy mine from the Indian grocery store. I don’t have the patience to make it at home. There are many recipes online for making homemade paneer. I used Nanak paneer for making this recipe. You can buy any brand that you like or prefer for instance Haldiram, Verka, and Vadilal. Paneer is available in Indian grocery stores.
They key to cooking paneer is that you don’t cook it for too long. It tends to get hard and chewy if you cook it very long.
What do I need to make Mushroom Paneer Bell Pepper – Instant Pot Mushroom Paneer Curry?
Oil, paneer, mushrooms, bell pepper, onion, tomato, ginger garlic paste, cumin seeds, ground cumin, ground coriander, garam masala, ground turmeric, water, black cardamom pod, cloves, Kashmiri chili powder, salt, and fresh cilantro leaves.
And most importantly an Instant Pot.
How do I make this Mushroom Paneer Bell Pepper – Instant Pot Mushroom?
Some people like to stir fry or deep fry the paneer before cooking. However, I am too lazy to do that. You are welcome to deep fry or stir fry paneer if you like.
Firstly, select sauté on the instant pot and adjust to normal. Next, add oil to the pot. When the oil is hot add cumin seeds, black cardamom pod, and cloves.
Once the cumin seeds splutter add onions, and ginger garlic paste. Stir occasionally to prevent the onions from burning. Next, when the onions turn golden in roughly 2 to 4 minutes add the spices (Kashmiri chili powder, ground cumin, ground coriander, ground turmeric, garam masala, and salt), along with 1/4 cup water. Stir well.
Then add the tomato puree. Let is sauté for 2 minutes until the raw tomato odor is eliminated and the oil separates.
Further, add in mushrooms, and bell pepper. Stir well. Next, add in paneer and stir gently.
Finally add 1/4 cup water. Press cancel. Secure the lid on and select manual/high pressure for 3 minutes. When done quick release the pressure. Transfer to a serving bowl. Last but not the least, garnish with cilantro. Serve with tortillas or naan (Indian flat-bread).
Tried this recipe yet? Give us a rating, comment below in the reply section and let us know what you think.
Try some of our other paneer and mushroom recipes:
Instant Pot Matar Paneer – Peas and Paneer
Paneer and Bell Pepper – Restaurant Style in the Instant Pot
Instant Pot Kashmiri Mushroom Yakhni / Instant Pot Mushroom Yogurt Curry

Mushroom Paneer Bell Pepper – Instant Pot Mushroom
Equipment
- Instant Pot
Ingredients
- 4 tbsp oil of choice
- 1/2 tsp cumin seeds (jeera)
- 1 whole black cardamom pod (kali elaichi)
- 2 whole cloves (laung)
- 1/2 onion (1/2 cup chopped)
- 1 tsp ginger garlic paste (either freshly minced in equal quantities or store bought)
- 1/2 tbsp kashmiri chili powder
- 1/2 tsp ground cumin (jeera powder)
- 1 tbsp ground coriander (dhaniya powder)
- 1/2 tsp ground turmeric (haldi)
- 1/4 tsp garam masala
- 1 tsp salt
- 1/2 cup water (divided)
- 1 and 1/2 tomatoes (3/4 cup pureed)
- 8 oz white button mushrooms sliced into 2 halves)
- 1/2 bell pepper (red) (1 cup diced)
- 6 oz paneer (half of a 12 oz pack) (chopped to 1/2 inch cubes)
- 1/4 cup cilantro leaves (fresh and finely chopped)
Instructions
Prep
- Dice the paneer to 1/2-inch cubes. Slice the mushrooms into two halves.
- Puree the tomatoes.
- Chop the onions, and cilantro finely.
- Dice the bell peppers into 3 inch cubes.
Cook
- Select sauté on the instant pot and adjust to normal. Next, add oil to the pot. When the oil is hot add cumin seeds, black cardamom pod, and cloves.
- Once the cumin seeds splutter add onions, and ginger garlic paste. Stir occasionally to prevent the onions from burning. When the onions turn golden in roughly 2 to 4 minutes add the spices (Kashmiri chili powder, ground cumin, ground coriander, ground turmeric, garam masala, and salt), along with 1/4 cup water. Stir well.
- Then add the tomato puree. Let is sauté for 2 minutes until the raw tomato odor is eliminated and the oil separates.
- Further, add in mushrooms, and bell pepper. Stir well. Next, add in paneer and stir gently.
- Finally add 1/4 cup water. Press cancel. Secure the lid on and select manual/high pressure for 3 minutes. When done quick release the pressure. Transfer to a serving bowl.
- Garnish with cilantro. Serve with tortillas or naan (Indian flat-bread).
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