Paneer Butter Masala

I love anything with paneer! I think it’s that ONE ingredient that rules the hearts of vegetarians and non-vegetarians alike. 

Whether it’s methi paneer, paneer kali mirch, Tawa paneer, paneer tikka, paneer pizza – everyone loves paneer.

It’s my go-to ingredient in various dishes. 

What is Paneer Butter Masala?

I am sure most of us have tasted Paneer butter masala at our local restaurants under different names.  

But for those of you who are unfamiliar with this dish – Paneer butter masala is a North Indian delicacy that translates to”cubes of Indian cottage cheese cooked in a rich and creamy onion-tomato-cashew sauce.”

Paneer Butter Masala can be found in most Indian restaurants worldwide, sometimes listed as Paneer Makhani, butter paneer, Paneer Makhanwala, or Shahi paneer. 

Whatever the name, this Punjabi paneer curry is worth trying, and its buttery taste will blow your mind. 

Why make this Paneer butter masala?

Lately, I’ve been craving this dish, and therefore, I am sharing a simplified version of paneer butter masala with you. It’s – 

• Customizable
• Quick and easy
• Freezer friendly
• Filling and comforting
• Perfect weeknight meal
• Has melt-in-your-mouth texture, and 
• Tastes so much better than the restaurant ones.

Making Paneer Makhani at home is a no-brainer and requires no culinary expertise. It’s super easy to make at home and is bursting with flavor, color, creaminess, and just the right amount of desired spices. 

Everything gets cooked in a one-pot and pair it alongside homemade tandoori roti, and you’ve got yourself a restaurant-style dining tonight! Not to mention, this lip-smacking paneer dish comes together in 30 minutes and is entirely customizable. 

Ingredients for Paneer Butter Masala

Please scroll to the bottom of the page for the printable recipe card with a full ingredients quantity and detailed instructions.

» Paneer – cut into cubes. If using frozen paneer, make sure you dip the paneer in warm water until it’s completely thawed and softs. Don’t immerse it for long, or it will start disintegrating during cooking. 

» Butter – use unsalted. This way, you can control the sodium content in the paneer curry. Don’t cut back on butter as it is the star ingredient of our recipe and adds great flavor. 

» Onions – I have used 2 medium-sized white onions. Feel free to use red onions as a substitute.

» Ginger + Garlic – for a boost of flavor, always use fresh. I have used sliced ginger and garlic. However, you can use ginger and garlic paste instead. 

» Cashew nuts – this is where our dish gets its creamy texture. If you are allergic to nuts, then swap cashews for an equal amount of cream or half and half. 

» Tomatoes – Use ripe tomatoes as they give a beautiful color to our paneer curry. 

» Tomato paste – don’t skip this. Concentrated store-bought tomato paste lends the butter masala a rich, creamy texture. 

» Whole spices include a bay leaf, cinnamon, black cardamom, green cardamom, and cloves. 

» Spices – Kashmiri Red chili powder, coriander powder, turmeric, garam masala powder, and salt. 

» Kasoori methi- a must-have ingredient. Always crush the dried methi leaves in between your palms before adding them to any curry. This crushing releases the aroma and flavor of Kasoori methi. 

» Oil – It’s added along with butter to prevent it from burning during cooking.  Feel free to use any oil you prefer. Olive oil, avocado oil tastes equally good. 

» Sugar – a little bit to balance all that tanginess from the tomatoes. Do not skip sugar as you need a little something to neutralize the sourness of the tomatoes. Feel free to use honey as a substitute. 

» Cream – for that luscious, velvety restaurant-style paneer butter masala texture, use any cream with 35% fat content or more. 

The slight sweetness of onions + the tanginess from the ripe tomatoes + richness of butter and cashews, the subtle aroma of the spices lends a deliciously deep flavor to this dish. Finally, Kasoori methi’s addition is what takes this paneer butter masala to a whole new level. It’s like Indian food at its best!

How to make Paneer Butter Masala?

STEP: 1 – Butter Masala

Melt butter over medium heat in a heavy-bottomed pan. Once the butter starts to melt, add chopped onions to the pan. Sauté until the onions turn translucent. 

Add ginger and garlic to the onions. 

Sauté the ginger and garlic for 1-2 minutes or until fragrant. 

Add cashews to this mix. Cook cashews for 2-3 minutes over medium heat, stirring intermittently. 

No add chopped tomatoes to the pan. Sauté the tomatoes with onions + cashews. Lower the heat to the low setting and cover the pan. Allow the mixture to simmer over low heat until the tomatoes are soft and tender.

Once the tomatoes are soft, uncover the pan. Take it off the heat and allow the masala to cool.

Once cooled, transfer this mix to a blender. Puree the cooled masala in the blender until smooth and creamy. Set aside. 

Step: 2 – Assemble Paneer butter masala

Heat a heavy-bottomed pan or Kadai over medium heat. Add butter and oil to it. As the butter starts to melt, add bay leaf, cinnamon, green cardamom, black cardamom, and cloves to the pan. 

Sauté for a few seconds until the whole spices are fragrant. Now add Kashmiri red chili powder to the whole spices. 

Mix until fully combined. Do not cook for long or the chilies will burn. Next, add the butter gravy back to the pan. 

Mix until the sauce is fully blended.

It’s time to season our masala. Add the coriander powder, turmeric, sugar, and salt to the masala. 

Stir around a while until the spices are well blended in the gravy. 

Cook the mixture for 2-3 minutes, stirring occasionally. Now add the tomato paste and garam masala powder to the cooking gravy. 

Cook for another 1-2 minutes on medium heat. Keep stirring. 

Now add water to the butter masala gravy. Depending on the consistency you like, add water slowly. If you prefer a thick gravy, add less water than recommended in the recipe. 

By now, the masala will start to ooze oil from the sides. Add Kasoori methi to the cooking gravy; mix it well. 

Now, add our star ingredient – paneer cubes to the gravy. 

Gently mix the paneer into the gravy. Add cream to the gravy. Cover and allow the paneer butter masala to simmer for 4-5 minutes on low heat. After the time has elapsed, take the pan off the heat, and our delicious and creamy paneer butter masala is ready to be devoured. 

Transfer the paneer butter masala to a serving dish. Spoon the remaining cream over paneer, garnish with chopped cilantro leaves, and serve hot with warm tandoori roti or naan. 

How to store leftovers?

Transfer the cooked and cooled paneer makhani to an airtight container and store in the fridge for 2-3 days. For the next day’s meal, reheat the curry in the microwave until it’s warmed through. 

You can also reheat the leftovers on the stovetop in a skillet. Transfer the chilled Butter paneer to the skillet. Add a tablespoon or two of water and reheat over medium heat.

Keep stirring and cook until the sauce starts to bubble around the edges. Once heated, take it off the flame and serve hot. 

Can I freeze the leftover Paneer Butter masala? 

Most certainly! If planning to freeze, I would suggest skipping the cream. Transfer the thoroughly cooled butter paneer to an airtight container and freeze. It stays good for 2-3 months in the freezer.

When ready to eat, thaw the butter paneer on the kitchen counter for 3-4 hours or overnight. Reheat the curry in the microwave or stovetop until it’s warmed through. 

Finally, add cream to the warmed paneer and serve.  

Can I make paneer Butter masala without onion and garlic?

You sure can! To make Butter paneer without onion and garlic, skip these ingredients, and the rest of the recipe remains the same. 

What can I use in place of paneer?

The paneer in this recipe can be easily be swapped for- 

• Tofu
• Mushrooms
• Chicken

Mushrooms will not require any additional steps. Follow the recipe as is and you are all set. 

For tofu – use extra firm tofu. Press down the tofu until all the moisture is released. Now, cut the tofu into the desired shape and cook in the boiling gravy. 

For the chicken – use 500 grams of chicken breasts to make chicken butter masala. Saute the chicken pieces in butter until it’s halfway cooked, then add it to the gravy. Allow the chicken to simmer in the butter gravy for 10-12 minutes until fully cooked. Rest all the steps remain the same. 

Can I substitute milk for cream?

I wouldn’t recommend that! Cream plays an important role in this paneer makhani recipe—the more the cream, the richer the taste. Cream + butter is what makes or breaks this dish.

Therefore, to enjoy a melt-in-your-mouth Paneer butter masala texture, do not cut back on these two ingredients. 

How to serve Paneer Butter Masala?

We enjoy Paneer makhani with naan along with sirke wala pyaaz ( vinegar onion) in my house.

For restaurant-style dining, you can serve this dish alongside jeera rice or tandoori roti too. 

So if you are craving the butteriest and the creamiest dish tonight, go ahead and try this Paneer makhani, and I guarantee you’re all going to love it! 

Should you make this Paneer butter masala recipe, please let me know your thoughts by sharing your comment below. 

And don’t forget to share it with your family and friends.

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