Paneer Butter Masala – A Creamy, Comforting Classic

Paneer Butter Masala is one of those dishes that feels like a warm hug. It’s rich, creamy, and full of flavor without being heavy on spice. If you love restaurant-style Indian food, this is a great recipe to make at home with simple steps and pantry staples.

The silky tomato-butter gravy pairs beautifully with soft paneer, and it’s perfect with naan, roti, or steamed rice. Whether you’re cooking for a cozy dinner or a small gathering, this dish always wins.

Paneer Butter Masala - A Creamy, Comforting Classic

Prep Time 15 minutes
Cook Time 30 minutes
Total Time 45 minutes
Servings: 4 servings

Ingredients
  

  • Paneer: 400–500 g, cut into cubes
  • Butter: 3–4 tablespoons, divided
  • Oil: 1 tablespoon (helps prevent the butter from burning)
  • Onion: 1 medium, sliced
  • Tomatoes: 4 medium ripe, chopped (or 1.5 cups tomato puree)
  • Cashews: 12–15, soaked in warm water for 10 minutes
  • Garlic: 4–5 cloves
  • Ginger: 1-inch piece
  • Whole spices: 1 bay leaf, 3–4 green cardamom pods, 4–6 black peppercorns, 1 small cinnamon stick, 2 cloves
  • Kashmiri chili powder or paprika: 1–1.5 teaspoons (for color and mild heat)
  • Coriander powder: 1 teaspoon
  • Turmeric: 1/4 teaspoon
  • Garam masala: 1/2 teaspoon
  • Kasuri methi (dried fenugreek leaves): 1–2 teaspoons, crushed
  • Cream: 1/4 cup (heavy cream or whipping cream)
  • Honey or sugar: 1–2 teaspoons (to balance acidity)
  • Salt: to taste
  • Water: as needed
  • Optional: a splash of milk to lighten the sauce, a pinch of cumin seeds

Method
 

  1. Prep the base: Soak cashews in warm water for 10 minutes.Chop tomatoes and slice the onion. Peel the ginger and garlic.
  2. Sauté aromatics: Heat 1 tablespoon butter and 1 tablespoon oil in a pan over medium heat. Add whole spices.When fragrant, add onion and sauté until soft and light golden.
  3. Add tomatoes and cashews: Add garlic, ginger, and the chopped tomatoes. Cook until the tomatoes break down and the raw smell disappears. Add cashews and a pinch of salt.Stir well.
  4. Season: Add turmeric, coriander powder, and half the chili powder. Cook for 2–3 minutes until the mixture thickens slightly and the oil starts to separate.
  5. Blend: Remove the bay leaf and cinnamon. Cool slightly, then blend the mixture until very smooth, adding a splash of water if needed.Strain for an extra-silky sauce (optional but recommended).
  6. Simmer the gravy: In the same pan, melt 1–2 tablespoons butter. Pour in the blended sauce. Add 1/2 to 3/4 cup water to reach a medium-thick consistency.Simmer on low for 6–8 minutes, stirring occasionally.
  7. Finish the flavor: Add kasuri methi (crushed between your palms), remaining chili powder, garam masala, and honey or sugar. Taste and adjust salt and sweetness.
  8. Add paneer: Gently stir in paneer cubes. Simmer for 3–4 minutes on low heat so the paneer absorbs flavor without becoming rubbery.
  9. Creamy finish: Stir in the cream and a final knob of butter.If the sauce feels too thick, add a splash of water or milk. The gravy should be smooth and coating, not pasty.
  10. Serve: Turn off heat. Rest for 2 minutes.Garnish with a drizzle of cream and a pinch of kasuri methi. Serve hot with naan, roti, jeera rice, or plain basmati rice.

What Makes This Special

Close-up cooking process: Silky paneer butter masala gravy simmering in a shallow sauté pan, showin

This version balances richness with a clean, fresh flavor. The sauce is made from tomatoes, onions, cashews, and whole spices, blended until smooth for that signature velvety texture.

A touch of honey or sugar complements the tomatoes, while kasuri methi (dried fenugreek leaves) brings a gentle, unmistakable aroma. The paneer stays tender and creamy, and a knob of butter at the end ties it all together. It’s indulgent but not over-the-top, and tastes just like your favorite restaurant curry.

What You’ll Need

  • Paneer: 400–500 g, cut into cubes
  • Butter: 3–4 tablespoons, divided
  • Oil: 1 tablespoon (helps prevent the butter from burning)
  • Onion: 1 medium, sliced
  • Tomatoes: 4 medium ripe, chopped (or 1.5 cups tomato puree)
  • Cashews: 12–15, soaked in warm water for 10 minutes
  • Garlic: 4–5 cloves
  • Ginger: 1-inch piece
  • Whole spices: 1 bay leaf, 3–4 green cardamom pods, 4–6 black peppercorns, 1 small cinnamon stick, 2 cloves
  • Kashmiri chili powder or paprika: 1–1.5 teaspoons (for color and mild heat)
  • Coriander powder: 1 teaspoon
  • Turmeric: 1/4 teaspoon
  • Garam masala: 1/2 teaspoon
  • Kasuri methi (dried fenugreek leaves): 1–2 teaspoons, crushed
  • Cream: 1/4 cup (heavy cream or whipping cream)
  • Honey or sugar: 1–2 teaspoons (to balance acidity)
  • Salt: to taste
  • Water: as needed
  • Optional: a splash of milk to lighten the sauce, a pinch of cumin seeds

Instructions

Final plated overhead: Restaurant-style paneer butter masala served in a low, wide white bowl, gloss
  1. Prep the base: Soak cashews in warm water for 10 minutes.Chop tomatoes and slice the onion. Peel the ginger and garlic.
  2. Sauté aromatics: Heat 1 tablespoon butter and 1 tablespoon oil in a pan over medium heat. Add whole spices.When fragrant, add onion and sauté until soft and light golden.
  3. Add tomatoes and cashews: Add garlic, ginger, and the chopped tomatoes. Cook until the tomatoes break down and the raw smell disappears. Add cashews and a pinch of salt.Stir well.
  4. Season: Add turmeric, coriander powder, and half the chili powder. Cook for 2–3 minutes until the mixture thickens slightly and the oil starts to separate.
  5. Blend: Remove the bay leaf and cinnamon. Cool slightly, then blend the mixture until very smooth, adding a splash of water if needed.Strain for an extra-silky sauce (optional but recommended).
  6. Simmer the gravy: In the same pan, melt 1–2 tablespoons butter. Pour in the blended sauce. Add 1/2 to 3/4 cup water to reach a medium-thick consistency.Simmer on low for 6–8 minutes, stirring occasionally.
  7. Finish the flavor: Add kasuri methi (crushed between your palms), remaining chili powder, garam masala, and honey or sugar. Taste and adjust salt and sweetness.
  8. Add paneer: Gently stir in paneer cubes. Simmer for 3–4 minutes on low heat so the paneer absorbs flavor without becoming rubbery.
  9. Creamy finish: Stir in the cream and a final knob of butter.If the sauce feels too thick, add a splash of water or milk. The gravy should be smooth and coating, not pasty.
  10. Serve: Turn off heat. Rest for 2 minutes.Garnish with a drizzle of cream and a pinch of kasuri methi. Serve hot with naan, roti, jeera rice, or plain basmati rice.

How to Store

Let the curry cool to room temperature before storing. Transfer to an airtight container and refrigerate for up to 3 days.

For longer storage, freeze the sauce without the paneer for up to 2 months; add fresh paneer when reheating for best texture. Reheat gently on the stovetop with a splash of water or milk to loosen the sauce. Avoid boiling after adding cream, as it can split.

Benefits of This Recipe

  • Restaurant-style at home: Smooth blended gravy, balanced spice, and rich flavor without being greasy.
  • Customizable: Adjust heat, richness, and sweetness to your taste.
  • Protein-rich: Paneer adds a good amount of vegetarian protein and calcium.
  • Make-ahead friendly: The gravy base freezes well, making weeknight dinners easier.
  • Kid-friendly: Mild spice and creamy texture make it approachable for all ages.

What Not to Do

  • Don’t overcook the paneer: Boiling it for too long makes it tough.Keep the simmer gentle and brief.
  • Don’t skip straining if you want silky texture: Seeds and skins from tomatoes can make the sauce grainy.
  • Don’t rush the simmer: The sauce needs a few minutes to meld and deepen in flavor.
  • Don’t add cream over high heat: It can split. Lower the heat before stirring it in.
  • Don’t rely on raw tomato flavor: Cook tomatoes until the acidity mellows and the oil starts to release.

Alternatives

  • Vegan version: Use firm tofu instead of paneer, oil instead of butter, and coconut cream or cashew cream instead of dairy cream.
  • No cashews: Use blanched almonds or sunflower seeds. You can also add a small boiled potato to help thicken.
  • No fresh tomatoes: Use canned crushed tomatoes or passata; add a pinch of sugar to balance the acidity.
  • Lighter option: Replace part of the cream with milk or yogurt (whisk the yogurt and add off heat to avoid curdling).
  • Spice swap: If you don’t have whole spices, use a pinch of ground cardamom and cinnamon.It won’t be the same, but it will still be delicious.
  • Add-ins: Toss in sautéed bell peppers, peas, or mushrooms for extra texture and nutrition.

FAQ

Can I fry the paneer first?

Yes, but keep it light. A quick shallow fry or pan-sear can add texture, but over-frying makes paneer chewy. If you do fry it, soak the cubes in warm water for 5 minutes to keep them soft before adding to the gravy.

What can I use instead of kasuri methi?

Kasuri methi adds a distinct aroma.

If you can’t find it, use a small pinch of ground fenugreek or skip it. You can also add a tiny squeeze of lemon at the end to brighten the flavor, but the taste won’t be identical.

How do I make it spicier?

Add a chopped green chili while sautéing the onions, or use a hotter chili powder. You can also finish with a pinch of red chili flakes.

Balance the heat with a bit more cream if needed.

Why is my sauce grainy?

It’s usually from unblended tomato skins or unsoaked nuts. Blend thoroughly and strain the sauce. Also make sure you cook the onion-tomato mix long enough before blending so it becomes soft and emulsifies smoothly.

Can I make this without nuts?

Yes.

Use seeds (like sunflower seeds) or skip them and add more cream for body. Another trick is adding a small boiled potato while blending to thicken without nuts.

Which tomatoes work best?

Use ripe, juicy tomatoes like Roma or vine-ripened. They’re less watery and have balanced sweetness and acidity, which helps achieve a richer sauce.

How do I keep the color bright red?

Use Kashmiri chili powder or paprika for color without too much heat, and avoid browning the sauce too much.

Canned tomato puree also gives a vibrant color.

Final Thoughts

Paneer Butter Masala is a reliable crowd-pleaser that’s surprisingly simple to master. With a smooth sauce, balanced seasoning, and tender paneer, it tastes special without requiring complicated techniques. Keep the heat gentle, give the gravy time to simmer, and finish with butter and cream for that classic richness.

Serve it fresh and warm, and you’ll have a restaurant-worthy meal right at home.

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