This capsicum curry (capsicum masala) is a simple yet flavorful Indian gravy dish where pan-fried bell peppers are simmered in medium spicy, nutty onion-tomato gravy.
Make nuts powder: Dry roast the peanuts and cashew nuts on medium heat until they are light brown in color. Remove it to a plate and let it cool down slightly. Grind the nuts into powder using a blender.
Make paste: In the same blender, add onion, tomato, green chili, ginger, garlic and coriander seeds. Make a smooth gravy out of it. No need to add any water.
Cook peppers: Heat 1 tablespoon of oil in a wide pan on medium heat. Once hot add bell pepper cubes.
Cook them until they are 70% cooked (the rest of the cooking is done when added into the gravy). Toss them around in between for even cooking. Once done remove it to a plate and keep it aside.
Make gravy: Heat another 1 tablespoon of oil in the same pan on medium heat. Once hot add cumin seeds, bay leaf and cloves. Let the cumin seeds sizzle a bit and they turn light brown in color.
Then add prepared onion tomato paste and salt. Mix well.
Cook on medium until all the water/ moisture is evaporated. In the beginning, it will splutter a lot. So partially cover the pan using a lid. Then cook uncovered until it becomes a thick paste and oil may start to ooze out from the sides. Do stir in between to make sure that it is not sticking to the pan.
Add turmeric powder and red chili powder. Mix well and cook for a minute.
Then add water, mix and let it simmer for 4-5 minutes. Adjust the water amount as per your liking gravy consistency.
Sprinkle the nut powder and mix.
Add pan-fried capsicum and mix. Cook for 2-3 minutes. At this point, you may need to add a splash of water if the gravy is too thick.
Lastly, add garam masala. Mix and capsicum curry is ready to serve.
Notes
Remove the white part (root) of the onion before grinding. If you grind that white part by mistake then it makes the gravy bitter.
To get a smooth gravy texture instead of grainy, soak the cashews and peanuts in hot water for 15 minutes and then make a smooth paste.
Don’t overcook the bell peppers otherwise, they get mushy and flavorless.
Adjust the amount of water as per your liking gravy consistency. I prefer thick gravy (as shown in the pic) for roti, paratha and I prefer thin, runny gravy when serving with rice or pulao.
It is important to cook onion tomato paste until it becomes thick and most of the moisture is evaporated. It adds a good depth of flavor.