Kadai paneer is a rustic dish, with big chunks of vegetables and paneer, cooked al dente, coated in a freshly blended spice mix incorporated into a semi dry gravy. Most restaurants serve it floating in a ton of sauce, everything cooked to death, with all the flavors overpowered by the ubiquitous tomato onion gravy. My husband and I have been looking for a semi dry dish, with the vegetables retaining a lot of the texture and fresh flavor, and the paneer just soft enough to chew. I finally found this recipe online, tried it once,and its a winner.
Recipe Source: (with very minor modificaitons)
http://www.chefandherkitchen.com/2012/12/kadai-paneer-recipe-paneer-recipes.html