Kadai Mushroom Recipe (Dry & Gravy)

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.

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

How to make Kadai Mushroom Gravy (Stepwise Photos)

Preparation

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)

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

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

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.

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

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.

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

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.

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.

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.

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

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

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

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

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.

Serve kadai mushroom gravy with rice or roti.

Recipe 2 – Semi-dry Kadai Mushroom

Ingredients

• 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.

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.

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

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.

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.

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.

Garnish kadai mushroom with chopped coriander and grated ginger.

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

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