Paneer Butter Masala is one of the most loved vegetarian dishes in Indian cuisine. Known for its rich tomato-based gravy, buttery texture, aromatic spices, and soft paneer cubes, this restaurant-style curry is a favorite for family dinners, festive occasions, and celebrations.

Paneer, a fresh Indian cottage cheese, is an excellent source of protein and calcium. Combined with tomatoes, butter, cream, and a blend of traditional Indian spices, it creates a smooth, mildly spiced curry that pairs perfectly with naan, roti, paratha, jeera rice, or steamed basmati rice.

This homemade version is easy to prepare and tastes just as delicious as the one served in restaurants.

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Recipe Information

• Cuisine: North Indian
• Course: Main Course
• Difficulty: Medium
• Preparation Time: 20 minutes
• Cooking Time: 30 minutes
• Total Time: 50 minutes
• Servings: 4
• Calories: Approximately 420 kcal per serving

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Why You’ll Love This Recipe

• Rich and creamy restaurant-style taste
• Perfect for festivals and special occasions
• Easy to make at home
• Mildly spicy and family-friendly
• High in protein
• Pairs well with Indian breads and rice

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Ingredients

For the Curry

• 250 g paneer, cut into cubes
• 3 large ripe tomatoes, chopped
• 2 medium onions, chopped
• 10–12 cashew nuts
• 1 tablespoon ginger-garlic paste
• 2 tablespoons butter
• 1 tablespoon oil
• ½ cup fresh cream
• 1 teaspoon sugar (optional)
• Salt to taste

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Whole Spices

• 1 bay leaf
• 1-inch cinnamon stick
• 2 green cardamoms
• 3 cloves

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Ground Spices

• 1 teaspoon Kashmiri red chili powder
• ½ teaspoon turmeric powder
• 1 teaspoon coriander powder
• 1 teaspoon cumin powder
• 1 teaspoon garam masala
• 1 teaspoon kasuri methi (dried fenugreek leaves)

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Garnish

• Fresh coriander leaves
• Fresh cream
• Butter (optional)

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Equipment Needed

• Blender
• Frying pan
• Saucepan
• Knife
• Cutting board
• Wooden spoon

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Preparation

1. Soak the cashew nuts in warm water for 15 minutes.
2. Cut the paneer into cubes.
3. Chop the onions and tomatoes.
4. Crush the kasuri methi between your palms before using to release its aroma.

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Step-by-Step Instructions

Step 1: Prepare the Tomato Base

Heat one tablespoon of oil in a pan.

Add the chopped onions and sauté until they become soft and translucent.

Add the ginger-garlic paste and cook for 1–2 minutes until the raw smell disappears.

Next, add the chopped tomatoes and soaked cashew nuts. Cook for about 10–12 minutes until the tomatoes become soft and pulpy.

Allow the mixture to cool slightly, then blend it into a smooth puree.

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Step 2: Cook the Whole Spices

In the same pan, melt the butter over medium heat.

Add the bay leaf, cinnamon stick, cardamoms, and cloves. Sauté for 30–40 seconds until fragrant.

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Step 3: Add the Puree

Pour the prepared tomato-cashew puree into the pan.

Cook for 8–10 minutes, stirring occasionally, until the gravy thickens and the butter begins to separate from the edges.

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Step 4: Add the Spices

Stir in:

• Kashmiri red chili powder
• Turmeric
• Coriander powder
• Cumin powder
• Salt
• Sugar (optional)

Cook for another 3–4 minutes, allowing the spices to blend into the gravy.

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Step 5: Add the Paneer

Gently add the paneer cubes to the gravy.

Mix carefully so the paneer doesn’t break.

Cook for 4–5 minutes over low heat.

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Step 6: Finish the Curry

Add:

• Fresh cream
• Garam masala
• Crushed kasuri methi

Stir gently and simmer for another 2 minutes.

Turn off the heat.

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Serving Suggestions

Paneer Butter Masala tastes best with:

• Butter naan
• Garlic naan
• Tandoori roti
• Lachha paratha
• Jeera rice
• Steamed basmati rice
• Pulao

Serve with sliced onions, lemon wedges, and cucumber salad.

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Chef’s Tips

• Use fresh paneer for the softest texture.
• Soak store-bought paneer in warm water for 10 minutes before cooking to make it softer.
• Kashmiri chili powder gives a vibrant red color without making the curry overly spicy.
• Blend the gravy thoroughly for a silky-smooth texture.
• Do not overcook the paneer, as it may become chewy.

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Variations

Restaurant Style

Add one tablespoon of butter just before serving for extra richness.

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Vegan Version

Replace paneer with tofu, butter with vegan butter, and cream with coconut cream or cashew cream.

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Spicy Version

Add chopped green chilies or extra chili powder.

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Smoky Version

Use the traditional dhungar method by placing a small piece of hot charcoal in a bowl inside the pan, adding a few drops of ghee, covering the pan for 2–3 minutes, and then removing the charcoal.

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Health Benefits

Paneer

• High-quality protein
• Rich in calcium
• Supports bone health
• Keeps you feeling full

Tomatoes

• Rich in lycopene
• Good source of vitamin C
• Natural antioxidants

Cashews

• Healthy fats
• Magnesium
• Copper
• Creamy texture without using excessive cream

Spices

Indian spices not only add flavor but also contain antioxidants and beneficial plant compounds.

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Nutritional Information (Approximate Per Serving)

• Calories: 420 kcal
• Protein: 16 g
• Carbohydrates: 12 g
• Fat: 34 g
• Saturated Fat: 17 g
• Fiber: 3 g
• Calcium: High
• Iron: Moderate
• Vitamin A: Good
• Vitamin C: Good

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Storage Instructions

• Refrigerate in an airtight container for up to 3 days.
• Reheat gently over low heat, adding a splash of water or milk if the gravy becomes too thick.
• Freeze without the cream for up to 2 months. Add fresh cream after reheating for the best texture.

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Frequently Asked Questions

Can I use store-bought paneer?

Yes. Soak it in warm water for 10–15 minutes before cooking to make it softer.

Can I make it without cream?

Yes. Blend extra cashews into the gravy or use yogurt or milk for a lighter version.

Why is my gravy not smooth?

Blend the tomato mixture until completely smooth, and strain it through a fine sieve if you want an extra-silky restaurant-style texture.

Can I prepare the gravy in advance?

Yes. The gravy can be made up to 2 days ahead and refrigerated. Add the paneer and cream just before serving.

Is Paneer Butter Masala spicy?

This recipe is mildly spiced. Adjust the chili powder or add fresh green chilies if you prefer more heat.