In c. 1920 he started working at a small eatery called Moti Mahal, owned by Mokha Singh Lamba in Peshawar, North-West Frontier Province, British India.

[11][12][13][14] Gujral started as a chef in a small restaurant owned by Mokha Singh Lamba in Gora Bazaar, Peshawar, British India.

[18][19] To avoid wastage of the leftover or unsold tandoori tikkas (marinated pieces of chicken cooked in a tandoor) due to the lack of refrigeration facilities at that time, Gujral added tomato gravy with butter to the tandoori tikkas to soften the chicken so that he could sell them the next day.

[24][25][26][27] Gujral is also known for inventing dal makhani which is a mildly spiced pulses curry made with the combination of tangy tomatoes, butter, and rich cream.

[28][29] After having fled Pakistan, Kundan Lal Gujral settled in Delhi and opened a small dhaba (roadside eatery) to introduce Delhiites to the tandoori chicken.

[31] The place quickly proved popular and within a year Kundan Lal Jaggi & Gujral bought the adjoining area, turning his eatery into a 400-seat restaurant.