Paneer Butter Masala Recipe

Paneer Butter Masala Recipe – Learn to make the best restaurant style Paneer Butter Masala at home. Isn’t it fun to recreate restaurant style dishes at home? Years ago, I found this BEST Paneer Butter Masala recipe in one of the cookbooks in a library. I tried it, tweaked it, then made this for years & my entire family got hooked to it. It’s creamy, flavorful & tastes super delicious!! It goes so well with Butter naan, tandoori roti, Chapati, plain fluffy Basmati Rice or Jeera Rice.

I love simple recipes and easy cooking that calls fewer ingredients and fewer steps to follow. This restaurant style recipe is always a winner for its simplicity & amazing taste.

About Paneer Butter Masala

Paneer Butter Masala, also known as Butter Paneer is a rich & creamy North Indian curry made with paneer, spices, onions, tomatoes, cashews and butter. As the name denotes, the curry is cooked in a generous amount of cultured butter which imparts it’s characteristic buttery flavor to the dish.

It is one of the most popular dishes in Indian restaurants similar to kadai paneer, Palak Paneer, Matar Paneer and Malai Kofta.

---

This paneer butter masala is a curry lover’s dream!! Soft paneer is dunked in a creamy, silky, super flavourful and delicious curry. My easy recipe will help you make the best butter paneer that tastes better than anything from a restaurant. Make this once and I am sure you will never want to order it in a restaurant.

Like many other North Indian dishes, the cooking process begins with sautéing of onions, ginger, garlic, tomatoes, cashews and spices. Later this is blended and simmered with butter for quite some time to achieve a rich and silky smooth curry base.

Lastly cubed paneer is simmered briefly and finished off with kasuri methi and cream for a creamy & amazingly delicious curry. Truly, a restaurant kind of paneer dish is ready in just 45 minutes!

This is my go-to butter masala recipe that I published on my blog 13 years ago. After making it countless times, I decided to update it with more tips, substitutes & instant pot instructions which I have tried. If you are a newbie or new to Indian cooking, do check out the expert tips section below. I also have an ingredients & substitutes sections that may help you.

More Paneer Recipes
Paneer Pasanda
Dhaba Paneer Curry
Paneer tikka masala
Paneer lababdar
Kadai paneer
Shahi paneer

Photo Guide

How to make Paneer Butter Masala (Stepwise Photos)

Preparation

1. Prepare the following ingredients to saute & blend

• 2 green cardamoms/ elaichi (or use ¼ to ⅓ tsp ground cardamom at the last step with kasuri)
• 1 cup sliced onions (130 grams from 1 medium yellow or 2 small red onions, avoid large red/purple onions)
• 1 inch peeled & sliced ginger, about 10 grams (or use 1½ to 2 teaspoon ginger garlic paste)
• 5 to 6 large garlic cloves , about 12 grams (peeled, omit if using ginger garlic paste)
• 2 cups sliced tomatoes, about 350 grams (may use up to 420 grams for a more tomatoey flavor (like I did), 2 large or 4 medium)
• 15 whole cashew nuts, about 30 grams (use up to 18 nuts/ 36 g if using more tomatoes or use almonds)
• ¾ to 1 teaspoon Kashmiri red chilli powder (or use paprika) (cut down for low heat, use more for high heat)
• ¾ to 1 teaspoon garam masala powder (adjust to taste)
• 1 teaspoon coriander powder (daniya powder) (optional)

2. To finish the dish, you need

• 2 tablespoons unsalted butter (30 grams) 
• 250 to 300 grams paneer (9 to 10 oz, I cut mine to ¾ inch, check here to make homemade paneer)
• 3 to 4 tablespoons heavy cream (45 to 60 ml, can use fresh cream, cooking cream or thickened cream)
• ½ tablespoon kasuri methi (dried fenugreek leaves, crushed in your palms)
• 1 teaspoon jaggery or sugar (optional, to balance the flavors)
• optional spices to boost flavor – 1 small Indian bay leaf + 2 inch Ceylon cinnamon piece (or 1 inch dalchini) + 3 cloves (laung)
• 1 to 2 tablespoon coriander leaves (cilantro finely chopped, to garnish, not in picture)

3. To a pan, add 1 tablespoon oil, cardamoms, onions, ginger and garlic. Saute for 4 to 5 mins, until the onions turn transparent. (If you are using ginger garlic paste, saute the onions first for 4 mins and then add the ginger garlic paste to saute for a minute or 2)

4. Add sliced tomatoes, 1 teaspoon sea salt and cashew nuts.

5. Stir well and cover the pan. Cook until the tomatoes turn mushy and break down completely. It takes me about 7 to 8 mins on a medium heat. I don’t add any liquid here but if your pan is dry, add a splash of water, not a lot. Later stir in the red chili powder, coriander powder and garam masala.

6. Saute on a medium heat for 3 to 4 mins, until aromatic. Turn off and cool down.

7. Pour 1 cup cold water to a blender jar & transfer the onion tomato masala.

8. Blend/ grind to a very smooth puree. Taste test to see if you need to increase the heat level.

Make Paneer Butter Masala

At this stage, if you want you may wipe clean the pan with wet kitchen papers but not essential unless you are using a cast iron.

9. In the same pan, melt the butter on a low heat and add the optional whole spices if using – bay leaf, cinnamon and cloves. Let the spices sizzle for 30 seconds and stir in ¼ teaspoon more chili powder (if you want to adjust the heat level or color).

10. Add the onion tomato puree to a strainer, held over the pan. Use a spoon to pass the puree.

11. Pour ½ cup more water & mix well. Bring to a gentle boil on a medium heat. Cover and cook until thick, about 10 to 12 mins. Keep stirring every 3 to 4 mins, to prevent burning at the bottom. (The gravy is thick and splatters a lot if you cook covered.)

12. When the butter masala is ready, you will see traces of fat on top and the consistency is slightly thick. The curry will thicken as it cools down, so keep it flowy and not too thick. If you are serving with rice, go with a more runny sauce. We were serving this with flatbreads so I made it thicker, yet flowy.

13. Remove the whole spices with a spoon, if you are worried about biting into them.

14. Add kasuri methi, jaggery, more salt and garam masala at this stage. (taste test before adding more garam masala)

15. Stir in the cream.

16. Stir the paneer and cover the pan. Cook on a low heat for 2 to 3 mins until heated through. Turn off.

17. Garnish with a tablespoon of cream and coriander leaves/ cilantro.

Serving Suggestions

Paneer Butter Masala is best served with Basmati Rice, Jeera Rice, cooked quinoa, Butter Naan, Tandoori Roti, plain kulcha or plain parathas. If you want to extend your menu, go with kachumber or Indian cucumber salad, onion salad, Jeera aloo & chaas. For a celebratory meal, include Mango lassi & Carrot halwa or any kind of halwa.

Instant pot Butter Paneer

Tip: If you want to make this in the instant pot without cashews, omit them and cut down the liquid to ⅓ cup but add ⅓ cup cream at the last stage.

• Pour 1 tbsp oil to the steel insert and saute cardamoms, onions, garlic and ginger for 3 to 4 mins. Add the tomatoes, cashews, chili powder and coriander powder. Pour ½ cup water. Pressure cook for 10 to 12 mins and let the pressure drop naturally.
• Open the lid & stir in the garam masala. Use an immersion blender or cool down to use a blender for a smoother sauce. (if you want, strain & press down with a spoon). Bring to a boil on a saute mode and add butter into the curry. (I usually add little water at this stage). Simmer for 5 to 6 minutes (very important to bring out the best flavors). Use a splatter screen or a lid to partially cover.
• When the sauce is ready it turns shiny/glossy and thicker. Add sugar/jaggery and kasuri methi. Taste test to adjust salt and garam masala. Mix in the paneer. Press cancel and stir in the cream. Garnish with coriander leaves.

Ingredients & Substitutes

• Tomatoes: Using good quality fresh red ripe tomatoes is crucial to make a delicious paneer butter masala. If your tomatoes are not great, make sure you core and deseed the tomatoes as they can make your dish bitter. Sub with canned whole tomatoes, weigh without liquid in the can.
• Onion: Onion adds a natural sweetness to the dish while balancing the tart flavor of tomatoes. I use a small amount to keep the flavor of tomatoes shine through. Small red onions, yellow onions or shallots are best. Avoid using very large purple/red onions with purple flesh. To omit onions, use this paneer makhani recipe.
• Ginger & garlic: Use fresh ginger & garlic. Chopped, sliced or paste – all forms work.
• Cashews or almonds: Nuts help thicken the curry, improve the flavor by adding natural sweetness and brings in a great rich texture. You can use cashews, almonds or almond flour.
• Ground spices: Kashmiri red chili powder adds mild heat and brings in a beautiful orange color. Garam masala and coriander powder add subtle aromas without killing the original flavor of the rich tomato sauce. So the dish is not made extremely hot or spicy. But feel free to adjust them to your preference.
• Whole spices: Cardamom is an essential spice that infuses delicate scent like aroma to this dish. If you don’t have the pods, use ground. Other spices like bay leaf, cloves and cinnamon impart beautiful flavors when simmered with your butter masala curry. Feel free to omit or sub with a small amount of garam masala.
• Butter: I love using unsalted butter because I find the salted version is not as fresh as the unsalted. But if you have only unsalted, use it and cut down salt in your dish.
• Kasuri methi are dried fenugreek leaves are crushed in between the palms and added at the finishing stage to impart a unique flavor. There is no substitute to this.
• Cream: To make this dish without cream, you may omit it completely. If you want the same kind of rich texture as provided by cream, increase the cashews slightly (not a lot). In India, fresh cream is used for a rich mouthfeel. I use heavy cream/whipping cream. But thickened cream or cooking cream also works. If you have homemade malai, you may use that as well (add while blending). Coconut cream, cashew cream or a small amount of pureed paneer also works.

Expert Tips

• Silky smooth gravy is what makes this dish classic. So blend the cooked onion tomato mixture to a very smooth puree with cold water or ice water. I highly recommend straining else your dish may end up being gritty with spices, tomato seeds and ginger fibers.
• Frying paneer: Paneer is included raw and never fried before adding to the butter masala. But if you want you may fry them in a tablespoon oil, on a medium high heat until light golden. I show it here on my saag paneer. Add the fried paneer directly to the prepared curry or drop them in a bowl of cold water to prevent them getting chewy.
• Prevent the cream from splitting: Avoid cooking paneer butter masala after adding cream. If your cream has no added stabilizers, it is most likely to split if you cook the curry after adding cream. I’ve never had a problem reheating this dish with commercial cream due to the stabilizers.
• Do you need tomato Paste or ketchup? For a more intense tomatoey flavor, you may add 1 teaspoon tomato paste or 1 tablespoon ketchup while blending. (taste test first and add) I feel it is not required if you are using higher amount of good quality tomatoes and cooking the curry long enough.
• Why use whole spices? – Store bought garam masala is often low in flavor due to oxidization. Using whole spices will improve the flavor & compensate for the loss.
• Crushing kasuri to bring out the flavors: Always store your kasuri methi in the refrigerator. This way they are crisp and easily crushable in your palms.

Faqs

Common questions

How to make paneer butter masala ahead?

Make the gravy or curry base without cream. Cool it completely. Refrigerate or freeze it in glass containers. Reheat it until bubbling hot, then add paneer. Cook for 2 mins and add cream.

How to make this recipe vegan?

This recipe can be made vegan easily by substituting paneer with extra firm tofu or any grilled veggies. Use vegan butter & vegan cream for butter and cream substitutes.

Can I use this recipe to make butter chicken?

You can use the sauce for butter chicken, but the spice levels I use for meat recipes is higher. I do have separate recipes, you can these Butter Chicken and Chicken Butter Masala.

Why are nuts & seeds used in paneer curry?

There are a lot of paneer curries where apart from cashews even almonds, magaz seeds (melon seeds) and poppy seeds are used. All of these serve the same purpose. They not only impart a creamy texture to the curry but also tones down the heat by adding a milky aroma to the dish.

Apart from this nuts & seeds also work as a stabilizer there by not splitting or curdling the curry in which tomatoes and dairy are used.

What is the best substitute for nuts & how to use?

There are a lot of people who cannot eat nuts due to allergies. For them a good substitute is poppy seeds, hulled white sesame seeds and sunflower seeds. I have tried with the first 2 options but a few readers have made this sunflower seeds too.

Soak these in warm water for 3 to 4 hours and then discard the water. Blend them with fresh water in a nut grinder or a chutney grinder until very smooth. Pass it through a sieve along with onion tomato puree.

Are paneer butter masala & paneer makhani same?

No, Just like Chicken butter masala and Chicken makhani (Butter chicken) are different & not the same, even paneer butter masala and paneer makhani are different. Though both are cooked in butter with similar ingredients they are not the same. But many restaurants use the terms interchangeably.

Paneer butter masala is a restaurant derived dish and there is no one particular way it is made across India. Each restaurant follows their own method & a set of ingredients. Example – onions, poppy seeds, melon seeds, cream etc. That’s why no 2 restaurants serve the same tasting paneer butter masala.

Paneer makhani on the other hand is a dish made with specific ingredients tomatoes, cashews and cream. It does not make use of ingredients like onions, poppy seeds or melon seeds. You can check the recipe of Paneer makhani here.

Related Recipes

Recipe Card