Kadai Mushroom Recipe (Dry & Gravy)

Updated: March 6, 2023, By Swasthi

Make the best Kadai Mushroom with this simple step by step photo recipe. Serve it as a side with plain basmati rice, roti, chapati, naan, paratha or even with flavored rice such as Jeera rice, Ghee rice, Coconut milk rice or with veg pulao. Made with pantry staples, this dish is easy to make, tastes delicious and is big on flavors that you will love to make it time and again.

Kadai Mushroom made in Homestyle

About Kadai Mushroom

Kadai Mushroom is a hot, spicy, flavorful and delicious North Indian dish made primarily with button mushrooms, bell peppers and fresh ground spice blend known as Kadai Masala. Other basic ingredients like onions, tomatoes and herbs also are used.

As the name suggests, the dish is cooked in a basic Indian wok known as Kadai. There are a lot of North Indian dishes made in a kadai. So they are named after it, like Kadai Paneer, kadai chicken etc. A special spice blend known as kadai masala is used to flavor up these kadai dishes.

Kadai masala enhances the aroma of any dish, giving it a completely different flavor profile. A kadai dish can be made with vegetables, paneer or even with legumes like chana. The basic idea is to cook them with this super flavorful spice blend in a Indian wok. However if you do not have a kadai simply make the dish in any pan.

So kadai masala is the star of this kadai mushroom recipe that lends a very unique flavor & taste. We love this at home so much that I keep making it quite often.

My Recipe

In this post, I have shared 2 recipes. One to make kadai mushroom gravy and the other to make the semi-dry version. The gravy version goes well with both the rice and flatbreads, while the dry version goes well with soft rotis or to use it in wraps and sandwiches.

Both these keep good in the office and school lunch boxes. To make rolls, wraps and sandwiches for my kids, I usually smear some greek yogurt or hung curd to bring down the heat. But the yogurt option won’t go well in the lunch boxes as it makes the wraps and sandwiches soggy.

For more Mushroom Recipes, you can check
Tandoori mushroom tikka
Mushroom masala
Hot garlic mushrooms
Mushroom pepper fry

Photo Guide

How to make Kadai Mushroom Gravy (Stepwise Photos)


1. To a grinder jar, add

  • 1½ tablespoons coriander seeds
  • 2 to 3 Kashmiri dried red chilies (or any heat chilies)
  • 2 green cardamoms (optional)
  • ½ teaspoon fennel seeds (optional)
adding spices to blender jar for kadai mushroom recipe

2. Make a coarse powder. Set this kadai masala aside.

blending spices to make kadai mushroom recipe

3. Heat a pan with 1 tablespoon oil. Next saute ¾ inch chopped ginger and 2 to 3 garlic cloves for a min.

frying ginger garlic in oil to make kadai mushroom recipe

4. Add 1 cup cubed onions (2 large) and saute them until they turn pink. Then add 1 cup chopped tomatoes (2 large) and ½ teaspoon salt as well.

adding onions tomatoes to fry

5. Mix and fry or cook covered until the tomatoes turn completely soft. Add 6 cashews to the pan.

adding cashews to make kadai mushroom recipe

6. Cool the onion tomatoes completely. Then add them to a blender jar. After making the kadai masala powder, I transferred it to a small bowl. And then used the same jar here.

adding cooked onion tomatoes to blender to make kadai mushroom recipe

7. Make a smooth paste of the onions and tomatoes without adding water. Set this aside.

pureed onion tomato masala to make kadai mushroom recipe

8. Add another tbsp of oil to the pan. Wash and slice mushrooms just before cooking them. Fry them well for 2 to 3 mins.

frying mushrooms to make kadai mushroom recipe

9. Add ¼ to ½ cubed bell peppers (capsicum) and 1 medium onion (diced & layers separated). Saute for another 2 to 3 mins on a high flame until a nice aroma comes out. Set these aside in a plate.

sauteing mushrooms to make mushroom recipe

Make Gravy

10. Add another tbsp of oil. Add kadai masala and saute it for 1 to 2 mins on a low heat. Then add onion tomato paste, red chili powder and garam masala as well.

sauteing spice powder

11. Saute it very well until the mixture leaves the pan.

masala leaving the pan after cooking to make kadai mushroom recipe

12. Next pour 1 cup water. Mix well to make a gravy.

pouring water to make kadai mushroom gravy

13. You may need more water to bring it to consistency. Cover and cook until the gravy thickens and you see traces of oil over the gravy.

cooking gravy until thick

14. Add kasuri methi if using. Check salt and add more if needed. Mix everything well.

adding kasuri methi

15. Add fried mushrooms, capsicum and onions. Mix well.

adding veggies to make kadai mushroom recipe

16. Add sliced deseeded green chilies and ginger julienne. Cook covered for 2 to 3 mins on a low to medium heat. You can also garnish with handful of chopped coriander leaves.

garnishing with chilies ginger coriander

Serve kadai mushroom gravy with rice or roti.

Kadai mushroom recipe

Recipe 2 – Semi-dry Kadai Mushroom


  • 1½ tablespoons oil
  • 1 to 1 ½ teaspoons ginger fine chopped or paste
  • ½ teaspoon kasuri methi / dried fenugreek leaves
  • ½ teaspoon garam masala
  • 1/8 teaspoon turmeric
  • ¼ teaspoon red chilli powder
  • 1 large onion finely chopped (optional)
  • 1 cup tomatoes (2 medium), fine chopped or pureed
  • ¼ to ½ cup capsicum / bell pepper sliced
  • 1 ½ cup mushrooms sliced (10 to 12 medium)
  • 1 small onion – diced and layers separated
  • handful of coriander leaves chopped

To powder or coarsely crush

  • 3 to 4 red chilies
  • 1 tbsp coriander seeds / daniya
  • ¼ to ½ tsp fennel seeds (saunf, sombu)
  • 1 green cardamom

How to make semi-dry kadai mushroom

1. Powder red chilies, coriander seeds and fennel seeds finely in a mixer jar.

grinding spices in a grinder jar

2. Add oil to a hot pan. Add 1 fine chopped onion and saute until golden. I preferred to skip using onions here so I save some time.

3. Then add the ground kadai masala powder and saute on a low heat until it begins to smell good. The raw smell of the spices has to go away completely. Next add fine chopped ginger & saute for 30 to 40 seconds until it turns aromatic.

sauteing kadai masala in oil

4. Then add fine chopped tomatoes, salt and turmeric.

sauteing tomatoes in pan for kadai mushroom

5. Saute for a few minutes and cook covered until the tomatoes turn mushy. At this stage taste test the onion tomato masala and add more red chilli powder if you prefer the dish to be spicy. Pour ¼ cup water & cook until the masala turns thick.

cooking onion tomato masala in pan

6. Add sliced mushrooms, diced onions, bell pepper, garam masala & kasuri methi. Mix and fry stirring often for 3 to 4 mins until the raw smell of the onions reduce.

adding mushrooms bell peppers to pan

7. After that I prefer to cover and cook on a low heat until mushrooms turn tender so they absorb the flavors & release some moisture. If the veggies become too dry in the pan, sprinkle some water. I did not add any. Taste test and adjust the salt.

simmering veggies in pan

Garnish kadai mushroom with chopped coriander and grated ginger.

dry kadai paneer

Notes: For a slightly creamy consistency of the gravy, blend tomatoes with 10 cashews until smooth and use. After sauteing the mushroom, pour little water and cook until the gravy turns thick and the mushrooms are done.

Pro tips

  1. Usually kadai masala is made with coriander powder, fennel seeds, red chilies & some garam masala. I have given the recipe to make the kadai masala as well in the same post. If you do not have the whole spices and chilies just use any ready made kadai masala.
  2. I have used button mushrooms which are best for this curry. Feel free to use any other kind.
  3. You can also make this mushroom recipe with other mixed veggies like potatoes, peas & bell peppers. Just get creative and add what ever veggies you like with mushrooms. You can also add some paneer.
  4. I have added few cashews to make the gravy slightly rich. You can either substitute with almonds or cream. If using cream then pour it towards the end.

Related Recipes

Recipe Card 1

kadai mushroom recipe

Kadai Mushroom Recipe (Dry & Gravy)

5 from 162 votes
A flavorful mushroom dish made with onion tomato base, bell peppers and freshly ground kadai masala. It is simply delicious & flavor packed. Serve kadai mushroom gravy with rice or roti or any Indian breads.
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For best results follow the step-by-step photos above the recipe card

Prep Time10 minutes
Cook Time30 minutes
Total Time40 minutes
Servings3 people

Ingredients (US cup = 240ml )

For kadai masala

  • tablespoon coriander seeds
  • 2 to 3 dried red chilies , kashmiri (or less spicy variety)
  • ½ teaspoon fennel seeds (optional)
  • 2 green cardamoms (optional)

For the gravy

  • 2 to 3 tablespoons oil (divided, to 3 portions)
  • 6 cashew nuts (soak if you want, can substitute with 3 tbsp cream)
  • 1 cup onions heaped , cubed about 2 large
  • 1 cup tomatoes chopped about 2 large
  • ¾ inch ginger chopped
  • 2 to 3 cloves garlic chopped
  • ½ to ¾ teaspoon kashmiri red chili powder (optional, just for color, adjust to taste)
  • ½ teaspoon garam masala powder
  • ½ teaspoon kasuri methi (dried fenugreek leaves)
  • ½ to ¾ teaspoon salt as needed

Other ingredients

  • 200 grams mushrooms (about 1 ½ cups sliced)
  • 1 medium onion cubed large, layers separated (optional)
  • ¼ to ½ cup capsicum cubed bell pepper (optional)
  • ½ to 1 teaspoon ginger julienne
  • 1 green chili (Indian/ Thai chili or serrano pepper, deseeded & julienned)



  • Make a coarse powder of coriander seeds, red chilies, cardamoms and fennel seeds in a grinder/blender. Set this aside.
  • Add 1 tbsp oil to a pan. Saute ginger garlic for 1 min. Stir in the onions and saute until transparent. Add the tomatoes and salt.
  • Saute until the tomatoes break down and turn mushy. Add cashews and turn off. Cool down and blend to a smooth paste.
  • Meanwhile rinse the mushrooms and slice them.
  • Heat a tbsp of oil in the same pan and saute the sliced mushrooms for 3 mins. Add the bell peppers and onions (cubed & layers separated).
  • Saute until mushrooms turn slightly golden and aromatic. Transfer to a plate

How to make kadai mushroom

  • Heat another tbsp of oil in the same pan. Stir the ground spices and red chilies. Saute for 2 mins, until aromatic
  • Add the onion tomato paste, red chilli powder and garam masala. Saute for 3 to 5 mins and pour 1 cup water. If you want you may add more water if required.
  • Bring to a rolling boil and reduce the heat to medium. Cover and cook until the sauce turns thick and you see traces of oil over the gravy. 
  • Add kasuri methi, sauteed mushrooms, bell peppers and onions. Stir well and taste test to adjust salt.
  • Add julienned green chilies and ginger juliennes. Cook on a low heat for 2 to 3 mins. Turn off the stove.
  • Rest for at least 15 mins before serving. Garnish with chopped coriander leaves. Serve kadai mushroom with plain rice, roti or any breads.


  • If you don’t have a powerful blender, consider soaking the cashews in hot water for 15 mins.


NUTRITION INFO (estimation only)

Nutrition Facts
Kadai Mushroom Recipe (Dry & Gravy)
Amount Per Serving
Calories 77 Calories from Fat 18
% Daily Value*
Fat 2g3%
Sodium 10mg0%
Potassium 488mg14%
Carbohydrates 13g4%
Fiber 3g13%
Sugar 5g6%
Protein 4g8%
Vitamin A 415IU8%
Vitamin C 14.2mg17%
Calcium 40mg4%
Iron 1.2mg7%
* Percent Daily Values are based on a 2000 calorie diet.
Tried this recipe?Mention @SwasthisRecipes or tag #swasthisrecipes!

© Swasthi’s Recipes

Kadai Mushroom Recipe first published in October 2017. Updated and republished in February 2022.

About Swasthi

I’m Swasthi Shreekanth, the recipe developer, food photographer & food writer behind Swasthi’s Recipes. My aim is to help you cook great Indian food with my time-tested recipes. After 2 decades of experience in practical Indian cooking I started this blog to help people cook better & more often at home. Whether you are a novice or an experienced cook I am sure Swasthi’s Recipes will assist you to enhance your cooking skills. More about me

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The third to last step is to add green chilies but I don’t see green chilies in the list of ingredients?

5 stars
Great write up about you and good initiative of wanting to help people Cook better.

I’ve tried many of your recipies and they have turned out very good and delicious

Thank you for sharing your recipies God bless you

?? love this

5 stars
It’s amazing…Success on first try..Thank you for the recipe.

5 stars
Hi Swasthi, I tried your kadai mushroom gravy recipe. It came out really well. Thank you for sharing.

5 stars
your reciepe is very tasty made .such a feel me a masterchef??

Hello Swasthi,the recipe looks si delicious that I am tempted to try it. Just a quick question – would it taste good even if I prepare the previous day? Thank you

5 stars
Made this kadai mushroom and my family loved it .

Awesome kadai mushroom recipe.. Tasty..

5 stars
Great Recipe, perfectly tested! Looking for nice lunch box recipes now that school has started after the pandemic and you have a wonderful collection. Keep up the good work!

How can I make it less spicy? My guests cannot eat hot foods

5 stars
Receipe come out to be restaurant style..Everyone liked this

Nice Recipe!

5 stars
Hi Swasthi garu,
Tried this recepie yesterday and came out really yummy…. Tried 2 more mushroom recepies too…family enjoyed a lot… Thank you for the yummy recepies always…


5 stars
It turned out to be awesome. My family’s new favorite

5 stars
The recipe was so very delicious and liked by all. I definitely will recommend it ?

5 stars
I never liked mushroom much. But this recipe changed it all, it was super yummy. It’s dish that I feed proud of having made myself! 😉

I wish I could share a picture!

5 stars
This is incredibly tasty
Thank you sir

5 stars

5 stars
Very tasty recipe for kadai mushrooms ?

5 stars
The khadai mushroom recipe came out very good. Mouthwatering? recipe. Thanks to Mrs. Swasti Srikant.?