Paneer tikka masala recipe | How to make paneer tikka masala (restaurant style)

Paneer tikka masala is a delicious, creamy & flavorful Indian dish made by grilling paneer & then simmering it in a masala gravy. Paneer refers to Indian cottage cheese, tikka is a small chunk of grilled food and masala here refers to a spiced gravy. So paneer tikka masala literally translates to grilled chunks of Indian cheese in a spicy gravy.

Paneer tikka masala is a vegetarian version of the world famous chicken tikka masala. This vegetarian dish is always found on the Indian restaurant menus. It is usually served with Butter naan, tandoori roti, paratha, basmati rice or jeera rice .

Paneer tikka masala served in restaurants is amazingly flavorful & uniquely delicious since paneer is grilled in Tandoor, a clay oven which imparts the best smoky flavors.

Making paneer tikka masala is a 2 step process.

Firstly, to infuse the flavors paneer is marinated with yogurt, spices & herbs. It is then grilled in a tandoor along with onions and bell peppers.

Secondly, a delicious and spicy onion tomato gravy is prepared. Then the grilled paneer is added to it and then garnished with cream.

Since we don’t have such tandoori oven at home we will have to grill the paneer either in oven or on a griddle or air fry them.

In this post I have shown all the 3 methods of grilling on the griddle on stovetop, in oven & air fryer. You can also grill it over direct charcoal grill and use.

More paneer recipes
Paneer butter masala
Paneer Makhani
Matar paneer
Palak paneer
Kadai paneer
Malai kofta
Chilli paneer

Preparation for paneer tikka masala

Marinade

1. To a mixing bowl, add the following ingredients:

• ½ cup greek yogurt (hung curd, refer notes)
• 1 teaspoon ginger garlic paste
• ¼ to ½ teaspoon red chili powder
• ½ teaspoon garam masala
• 1/8 teaspoon turmeric
• ¼ teaspoon kasuri methi
• 1 teaspoon oil
• ¼ teaspoon salt
• 1 teaspoon lemon juice (optional)

2. Use thick yogurt or hung curd here. If you only have homemade yogurt, then add 1 cup homemade yogurt to a thin muslin or cheese cloth. Squeeze off the excess whey and hang it for few hours. Mix everything well. The consistency of the marinade has to be thick as seen in the picture below. (I forgot to add ginger garlic at step 1 so added it here.)

3. Add cubed paneer to the prepared marinade. Optional – Dice half small onion to 4 pieces & separate the layers. Dice half small bell pepper as well. Make sure the size of onion and bell pepper are almost the same as paneer. Crunchy onions and bell peppers impart a great texture and aroma to the final dish.

4. Mix everything well. Rest aside in the fridge until the tikka masala gravy is ready.

Making gravy

5. Add 1 tbsp oil to a pan. Next add 1 cup chopped onions and saute them until transparent or light golden. Then add 1½ cup chopped tomatoes and 14 cashews. Sprinkle 1 teaspoon sugar, ¼ teaspoon salt and roast all of these until mushy and soft. You can also cover and cook.

6. Then add all the spice powders mentioned below

• 1/8 teaspoon turmeric
• ¾ to 1 teaspoon garam masala
• ¾ to 1 teaspoon red chilli powder

7. Saute for 1 to 2 minutes until it turns aromatic. Turn off the stove, when you begin to get a nice smell of the masala.

8. Cool this completely and add to a blender jar. Pour ¾ cup water. To cut down the cooling time, you can also pour ice cold water to the jar and then add the mixture. But ensure it is not hot.

9. Blend it to a puree. If you prefer a smooth curry, pass it through a sieve/ filter.

How to make paneer tikka masala

10. Heat 1 tablespoon oil in a pan. Optional – You can add any whole spices if you have – 2 cardamom, 1 small cinnamon piece or even 2 cloves.

11. When the spices begin to sizzle, add 1½ teaspoon ginger garlic paste. Saute on a low heat for 1 to 2 minutes, until it turns aromatic & the raw smell goes off.

12. Pour the onion tomato puree to the pan. Be careful it will begin to splash out of the pan, you can partially cover and cook. To adjust the color you can add more red chilli powder at this stage. I did not use more.

13. Pour ½ to ¾ cup water to bring to a desired consistency. Mix everything well and cook on a low flame until the sauce simmers well and thickens.

14. When the gravy is done, it turns thick & you will see some specks of oil separating on top of the gravy. Add kasuri methi (optional). Continue to cook for another minute. Taste test and add more salt if needed. Set this aside.

Grilling paneer

16. You can grill the paneer while your gravy is simmering. Option 1 – For the paneer tikka on stovetop : Heat 1 tsp oil in a wide pan on a medium high flame, place the paneer cubes coated with the marinade in the pan.

17. Flip them to the other side and cook on a high flame till all the marinade dries up and the paneer turn golden. This takes only 2 to 3 mins. Set aside. Do not over fry them, as the paneer turns hard.

Optional if using veggies – In the same pan, Coat the veggies with the marinade and place them on the griddle. Cook till the marinade dries up. The veggies should look partially charred. Do not overdo else they lose the crunch.

18. Option 2 – If you have an air fryer you can also grill these in the air fryer at 390 F or 200 C for 5 mins. Brush them with the leftover marinade and then air fry for another 2 mins. The timings vary if lesser skewers are placed. Reduce the total time to 5 mins for 3 to 4 skewers. Also space them apart slightly so they don’t stick.

19. Option 3 – To grill tikka in oven, put them on to skewers alternately paneer, onion and capsicum. Bake in a preheated oven at 430 F or 220 C for 8 to 10 minutes. you may need to adjust the timing as needed. It depends on the size of cubes and oven too.

20. You may need to flip the skewer and then grill again if your oven does not have a fan.

Adding tikka to masala

21. Add the grilled tikkas to the gravy. Gently mix. Make sure the gravy is thickened before adding paneer.

22. Pour 3 tablespoons cream and stir.

Garnish with fresh chopped coriander leaves and slit green chilies. Serve paneer tikka masala hot with butter naan, roti, plain paratha or jeera rice.

Dungar for paneer tikka masala

To give a smoky flavor to the dish try using this dhungar method using charcoal. Please note that it could be dangerous doing on a gas stove. I suggest doing it out of the kitchen, using another source like a large candle.

• Place a steel bowl in your curry so it is not immersed in the curry.
• Burn a small piece of natural wood charcoal over direct fire holding it with a tong until red hot. Make sure it burns well so that it can release the smoke.
• Take it away from the candle – place it inside the bowl. Add 1/2 tsp ghee or oil.
• Immediately it begins to emit smoke.
• Make sure charcoal is not touching the food. Cover the pan with a lid immediately. Leave it for 5 to 6 minutes. This infuses a smoky flavor to your dish.

Tips to make paneer tikka masala

1. Use the best quality paneer to get softer chunks. I make my own following this homemade paneer recipe.
2. Do not use sour yogurt as it can make the curry sour.
3. If you do not eat onions, then you can skip them in the recipe.

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Paneer tikka masala recipe