Paneer Butter Masala

Soft paneer cubes simmered in a rich, creamy tomato-butter sauce with warm spices — Paneer Butter Masala is the vegetarian showstopper of Indian restaurants. It is indulgent, silky, and perfect with naan.
- Prep time
- 15 mins
- Cook time
- 30 mins
- Total time
- 45 mins
- Servings
- 4 servings
- Calories
- 520
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Ingredients
- 14 oz (400 g) paneer, cut into 1-inch cubes
- 2 tablespoons butter, plus 1 tablespoon extra
- 1 tablespoon oil
- 1 large onion, finely chopped
- 1 tablespoon ginger-garlic paste
- 4 medium tomatoes, chopped
- 10 cashew nuts, soaked 15 minutes
- 1 teaspoon garam masala, 1 teaspoon Kashmiri red chili powder, 1/2 teaspoon turmeric powder, and 1 teaspoon sugar
- 1/2 cup heavy cream
- 1 teaspoon kasuri methi (dried fenugreek leaves)
- Salt to taste
- 2 tablespoons chopped fresh cilantro
Instructions
- Heat the oil and 1 tablespoon butter in a large pan over medium heat. Lightly fry the paneer cubes for 2 minutes until golden at the edges. Remove and set aside in warm water.
- In the same pan, cook the onion for 6 minutes until soft and golden. Add the ginger-garlic paste and cook for 1 minute.
- Add the tomatoes, soaked cashews, chili powder, and turmeric. Cook for 8 minutes until the tomatoes break down and the oil separates.
- Cool slightly, then blend the mixture into a smooth, silky puree with a splash of water.
- Return the puree to the pan with the remaining butter. Simmer for 5 minutes, then stir in the garam masala, sugar, and salt.
- Add the cream and the drained paneer cubes. Simmer gently for 5 minutes so the paneer soaks up the sauce.
- Crush the kasuri methi between your palms and stir it in. Rest for 5 minutes, garnish with cilantro, and serve hot with naan or rice.
Pro tips
- Soaking the paneer in warm water keeps it soft — never add cold, dry paneer straight to the sauce.
- Blending the onion-tomato base is what gives the gravy its restaurant-smooth texture.
- Kashmiri chili powder gives color without much heat; use regular chili powder if you want it spicier.
- Crush the kasuri methi in your palms to release its aroma.
Frequently asked questions
What is the difference between paneer butter masala and shahi paneer?
Paneer butter masala is tomato-based and rich with butter and cream. Shahi paneer is milder, often made with a cashew and yogurt base and fewer tomatoes.
Can I make paneer butter masala vegan?
Yes — use firm tofu instead of paneer, plant butter, and coconut cream instead of dairy cream. The spices carry the flavor.
Why is my gravy not smooth?
Blend the onion-tomato base thoroughly and pass it through a sieve if needed. A powerful blender and a little patience make all the difference.
How long does paneer butter masala keep?
Refrigerate for up to 3 days. Reheat gently with a splash of cream or milk.