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Paneer Butter Masala Recipe

Paneer Butter Masala is a rich and creamy North Indian curry made with soft paneer cubes simmered in a silky tomato-cashew gravy enriched with butter, cream, and aromatic spices. This restaurant-style recipe delivers the perfect balance of sweetness, spice, and buttery flavor for an indulgent vegetarian meal.
Print Recipe
Prep Time 10 minutes
Cook Time 30 minutes
Total Time 40 minutes
Servings: 3
Course: Main Course
Cuisine: Indian, North Indian
Ingredients Equipment Method Notes

Ingredients
  

For the Gravy Base
  • 2 tbsp butter unsalted
  • 1 tbsp oil
  • 1.5 cups chopped tomatoes or 4 medium tomatoes
  • 10 –12 cashews
  • 2 –3 green cardamoms
  • 1- inch cinnamon stick
  • 4 –5 garlic cloves
  • 1- inch ginger piece
  • 1 tsp Kashmiri red chili powder
  • Salt to taste
For Finishing the Gravy
  • 250 –300g paneer cubed
  • 2 tbsp fresh cream
  • 1 tsp kasuri methi crushed
  • ½ tsp sugar optional
  • 1 tbsp butter
  • ¼ –½ cup water as needed
For Garnish
  • Fresh coriander leaves
  • Cream swirl
Optional Paneer Preparation
  • Warm water for soaking paneer
  • Ghee for lightly frying paneer cubes

Equipment

  • Heavy-bottomed pan or kadai
  • Blender or mixer grinder
  • - Fine mesh strainer (optional)
  • Wooden spoon or spatula
  • - Knife and chopping board
  • - Measuring cups and spoons

Method
 

Step 1: Prepare the Tomato Base
  1. Heat 1 tablespoon oil and 1 tablespoon butter in a pan.
  2. Add ginger, garlic, green cardamoms, cinnamon stick, and cashews.
  3. Sauté for about 30 seconds.
Step 2: Cook the Tomatoes
  1. Add chopped tomatoes and cook for 6–8 minutes until soft and mushy.
  2. Turn off the heat and allow the mixture to cool slightly.
Step 3: Blend the Gravy Base
  1. Transfer the mixture to a blender and blend into a smooth paste without adding water.
  2. For an ultra-smooth restaurant-style texture, strain the puree through a fine sieve.
Step 4: Prepare the Gravy
  1. In the same pan, add the remaining 1 tablespoon butter.
  2. Pour in the blended puree and cook for 4–5 minutes.
  3. Add salt, Kashmiri red chili powder, and sugar.
  4. Pour in ¼ cup water and simmer for 5–6 minutes until butter begins separating at the edges.
Step 5: Add Cream and Kasuri Methi
  1. Reduce the heat to low.
  2. Add fresh cream and crushed kasuri methi.
  3. Mix gently until combined.
Step 6: Prepare the Paneer
  1. For softer paneer, soak the cubes in warm water for 10 minutes and drain.
  2. Alternatively, lightly fry the paneer cubes in a little ghee for 2–3 minutes until lightly golden.
Step 7: Add the Paneer
  1. Add the paneer cubes to the gravy.
  2. Stir gently and cook for 2–3 minutes without overcooking.
Step 8: Finish and Serve
  1. Add the remaining butter.
  2. Garnish with fresh coriander and a swirl of cream.
  3. Serve hot with naan, kulcha, roti, paratha, or jeera rice.

Notes

- Straining the blended gravy gives the signature restaurant-style smooth texture.
- Do not add cream while the gravy is boiling, as it may split.
- Avoid overcooking paneer, as it can become rubbery.
- Kashmiri red chili powder provides vibrant color without excessive heat.
- Crush kasuri methi between your palms before adding for maximum aroma.
- For smoky dhaba flavor, use the dhungar method with hot charcoal and a few drops of ghee.
- The gravy base can be prepared ahead and frozen for up to 1 month.
- Leftover Paneer Butter Masala can be used in wraps, pasta, sandwiches, or as a pizza sauce.
- For a vegan version, replace paneer with tofu, butter with vegan butter, and cream with cashew or almond cream.
- Serve with butter naan, garlic naan, tandoori roti, lachha paratha, or jeera rice.