This is a famous Punjabi dish popular in North India. Paneer and capsicum are cooked in a tomato based gravy along with other spices. Traditionally the dish is prepared in a kadai (a deep cooking pot similar to wok) and hence the name. To make the dish restaurant-style, add cream (or whole mik) and kasuri methi towards the end.
Recipe Courtesy: Sushma's Savi-Ruchi