I've used paneer in biryani and it's very good (I love both paneer and biryani). I marinate the paneer beforehand for at least an hour (or two): in a mixture of about 1 tbsp oil, 2 tbsp thick yogurt, 1 tbsp garlic-ginger paste, 1/2 tsp garam masala powder, 1/2 tsp dried fenugreek, and some fresh mint chopped very fine. Makes the paneer a bit more flavorful.
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