Capsicum Gravy is a mild creamy gravy made by cooking colored capsicum with coconut , nuts paste along with basic spices and herbs. Capsicum Gravy is a great side for roti, chapati, pulao, variety rice, plain rice etc. The combination of toasted sesame seeds, peanuts, and coconut gives it a subtle nutty taste that makes this gravy unique.

This gravy needs only basic pantry staples , easy and quick to make. Whether it’s for a busy weekday meal or lunchbox, this gravy works well without feeling too heavy. It’s also a nice change from the usual onion-tomato gravies.
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About Capsicum Gravy
Capsicum Gravy is a South Indian-style curry where capsicum pieces are simmered in a paste made from coconut, sesame seeds, peanuts, and a few cashews. It has a creamy texture with mild flavors, making it suitable for both adults and kids. If you prefer less spicy curries, this one’s perfect.
This recipe skips tomatoes and heavy masala. Instead, the coconut-nut blend adds thickness and richness. A touch of red chili powder and garam masala brings in warmth without making it spicy. As the gravy simmers, it turns smooth and coats the capsicum nicely.
You can use just green capsicum or mix it with red and yellow ones for more color and a slightly sweet flavor. Lightly sautéed onions and capsicum give a slight crunch, which goes well with the creamy base. It’s quite a flexible recipe and pairs well with rice or any Indian bread like chapati or phulka.
I usually make this when I want something simple yet tasty. It doesn’t need much chopping or long cooking time, so it’s perfect for busy days. My little one enjoys it with chapati, so I often skip green chilies and keep the spice level low. Feel free to adjust it as per your family’s taste.

Capsicum Gravy Ingredients
- Capsicum – I used a mix of colored capsicum chopped into cubes as it adds a nice crunch and mild sweetness. You can use just green capsicum if that’s what you have.
- Sesame Seeds – Use only white sesame seeds which is best for this gravy, adds creaminess to the gravy.
- Peanuts – toasted and grind with other ingredients to make the masala paste.
- Coconut – fresh grated coconut is best to use, adds volume to the gravy.
- Cashew Nuts – adds richness and creaminess to the gravy, do not skip it. You can replace it with almonds.
- Onion – Just a tablespoon of cubed onion is used.
- Jeera (Cumin Seeds) – Tempered in oil to release its flavor – adds a nice aroma and aids digestion.
- Red Chili Powder – added for spice and gives a mild color o the gravy.
- Pepper Powder – Adds a gentle kick – balances the mildness of the coconut base.
- Garam Masala Powder – A pinch of this adds depth and warmth to the curry – you can skip if you prefer a lighter flavor.
- Salt – Enhances all the other flavors – adjust to taste.
- Oil – added for tempering and sauté the vegetables.
- Coriander Leaves – adds for garnish, adds a freshness to the gravy.
Why This Recipe Works
- This is a quick and easy to make recipe made with simple pantry ingredients.
- The nutty coconut base makes it creamy without needing cream or curd.
- This recipe is mildly spiced and perfect for both kids and adults.
- It’s very versatile – pairs well with roti, rice, pulao, or even biryani.
- The texture and color from capsicum make it visually appealing and tasty.
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How to make Capsicum Gravy Step by Step
1.Get all your ingredients ready first. Now dry roast sesame seeds till golden, set aside , then toast peanuts until brown spots appear here and there, set aside to cool.

2.Then toast coconut till there is no moisture content, do not let the color change, Set aside to cool. Now add cashews and dry roast it 2 minutes and allow it to cool down. Transfer the ingredients to the mixer.

3.Add little water and grind it a smooth paste, Set aside. Now in a pan heat oil add capsicum and onion and fry for 3 minutes, Set aside. Now in the same pan add little more oil and add jeera let it crackle.

4.Then add the coconut paste , add little water and let it boil for 2 minutes. Then add red chili and garam masala powder along with pepper powder. Add required salt.

5.Add required water as it becomes thick. Check for salt and adjust at this stage. Simmer and let it boil for 5 minutes. Add toasted onion capsicum stir well. Now garnish with coriander leaves and switch off.

Serve hot with rice or roti(phulka)!

Expert Tips
- Dry roast – Roast sesame seeds, peanuts, and coconut but not burnt – this brings out flavor and removes moisture.
- Adjust spice – This version is kid-friendly. If you like it spicy, add more red chili powder or a green chili while grinding.
- Consistency – The gravy thickens as it cools, so adjust water while reheating to keep it creamy and pourable.
- Use fresh coconut – For best taste, use fresh grated coconut. If not available, use desiccated coconut but dry roast it lightly.
- More flavor – A pinch of kasoori methi or a squeeze of lemon juice at the end can elevate the flavor profile.
Serving and Storage
Serve this Capsicum Gravy hot with phulka, roti, plain rice, jeera rice, or even pulao. You can also pack it in the lunchbox with soft chapathis—it stays good for hours.
If you have leftovers, store them in an airtight container in the fridge. It stays good for 2 days. Reheat with a splash of hot water before serving.
FAQS
1.Can I use only green capsicum?
Yes, you can. Green capsicum gives a stronger flavor, while colored ones are milder and slightly sweet.
2.Is this gravy spicy?
Not at all. It’s a very mild gravy made for kids. You can always add more red chili powder or green chilies if you like it spicier.
3.Can I skip peanuts?
Yes, just increase the cashews slightly to maintain the creaminess if skipping peanuts.
4.What can I serve this with?
It goes well with roti, chapati, steamed rice, jeera rice, pulao, or even biryani.
5.Can I make this ahead of time?
Yes, you can make it in advance. It tastes even better the next day as the flavors settle in. Just reheat with a little water.

If you have any more questions about this Capsicum Gravy Recipe do mail me at sharmispassions@gmail.com. In addition, follow me on Instagram, Facebook, Pinterest, Youtube and Twitter .
Tried this Capsicum Gravy Recipe? Do let me know how you liked it. Also tag us on Instagram @sharmispassions and hash tag it on #sharmispassions.
📖 Recipe Card
Capsicum Gravy Recipe
Ingredients
- 1/2 cup capsicum
- 1 tablespoon onion
- 1/2 teaspoon red chilli powder
- 1/4 teaspoon pepper powder
- 1/4 teaspoon garam masala powder
- 2 teaspoon oil
- coriander leaves
- salt to taste
To Grind to a Paste:
- 3 teaspoon sesame seeds
- 1 tablespoon peanuts
- 1/2 tablespoon cashewnut
- 1/8 cup coconut
To Temper:
- 1/2 teaspoon oil
- 1/2 teaspoon jeera
Instructions
- Get all your ingredients ready first. Now dry roast sesame seeds till golden, set aside.
- Then toast peanuts until brown spots appear here and there, set aside to cool.
- Then toast coconut till there is no moisture content, do not let the color change, set aside to cool.
- Now add cashews and dry roast it 2 minutes and allow it to cool down.
- Transfer the ingredients to the mixer.
- Add little water and grind it a smooth paste, set aside.
- Now in a pan heat oil add capsicum and onion and fry for 3 minutes, set aside.
- Now in the same pan add little more oil and add jeera let it crackle.
- Then add the coconut paste , add little water and let it boil for 2mins.
- Then add red chilli and garam masala powder along with pepper powder. Add required salt.
- Add required water as it becomes thick. Check for salt and adjust at this stage.
- Simmer and let it boil for 5 minutes.
- Add toasted onion capsicum stir well.
- Now garnish with coriander leaves and switch off.
- Serve hot with rice or roti / phulka!
Notes
- Dry roast – Roast sesame seeds, peanuts, and coconut but not burnt – this brings out flavor and removes moisture.
- Adjust spice – This version is kid-friendly. If you like it spicy, add more red chili powder or a green chili while grinding.
- Consistency – The gravy thickens as it cools, so adjust water while reheating to keep it creamy and pourable.
- Use fresh coconut – For best taste, use fresh grated coconut. If not available, use desiccated coconut but dry roast it lightly.
- More flavor – A pinch of kasoori methi or a squeeze of lemon juice at the end can elevate the flavor profile.
Kurinji
colorful and yummy gravy…
Sharan Prathap
Instead of capsicum can we add potato?
SHARMILEE J
Add potatoes but with other veggies as with just potatoes it will be bland….
Mahalakshmi
Looks awesome….should taste great….
Preeti Rajkumar
Looks yumm! Can i use dry coconut instead of fresh
SHARMILEE J
The flavour will change but you can try….
Coral crue
looks so creamy and delicious
RSI
Hello,
Such a lovely dish.
Can you tell me what to add in place of sesame seeds?
SHARMILEE J
You can skip it or add badams…..
rajalakshmi M
Superb recipe. Will try it for sure
Sangeetha Ganeshbabu
I tried it.it was good.hubby liked it.
Sushma Vasudeva
This came out really well. Thanks for the recipe.
Kalpana B
Wonderful recipe. Tried it. Tasty. Good post Sharmi.
Kalpana B
Wonderful recipe. Tried it. Tasty. Good one Sharmi.
krithika
scrumptious. love the way you have presented. prepared with phulkas tasted great with the blend of sesame ,cocunut and cashews gives a different taste .thanks for the recipe
kiruba
Pepper Powder s not mentioned in ingredient s list and also how many badams can we add instead of sesame seeds.
Sharmilee J
Updated it now…thank you!
ksadhanya
Mam..I have a doubt. You are saying that it will thicken even after cooking. Wat if it becomes thick after putting it in the lunch box ?
Please let me know
Sharmilee J
You can make it a lil thin if you are packing for lb