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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 flavored with butter, cream, and aromatic spices. This restaurant-style vegetarian classic delivers the perfect balance of sweetness, tanginess, and mild spice.
Print Recipe
Prep Time 10 minutes
Cook Time 30 minutes
Cashew Soaking 15 minutes
Total Time 55 minutes
Servings: 2
Course: Main Course
Cuisine: Indian, South Indian
Ingredients Equipment Method Notes

Ingredients
  

For the Base Gravy
  • - 2 tbsp butter
  • - 1 tbsp neutral oil
  • - 1.5 cups tomatoes roughly chopped (about 4 medium tomatoes)
  • - 10–12 cashews soaked in warm water for 15 minutes
  • - 2–3 garlic cloves
  • - 1-inch ginger
  • - 1 green chili optional
For Whole Spices (Optional)
  • - 1 bay leaf
  • - 2–3 green cardamoms
  • - 3–4 cloves
  • - 1 small cinnamon stick
For Finishing
  • - 200–250g paneer cubed
  • - 1 tsp Kashmiri red chili powder
  • - ½ tsp garam masala
  • - 1 tsp sugar or jaggery
  • - Salt to taste
  • - ¼ cup fresh cream
  • - ½ tsp kasuri methi crushed
  • - 1 tbsp butter
  • - Splash of milk or water to adjust consistency

Equipment

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

Method
 

Step 1: Prepare the Tomato-Cashew Base
  1. Boil the chopped tomatoes and soaked cashews with a little water for 8–10 minutes. Allow the mixture to cool slightly and blend into a smooth puree. Strain if desired for an extra silky texture.
Step 2: Prepare the Paneer
  1. Lightly pan-fry the paneer cubes in a little butter or ghee until golden on the edges. Transfer them to warm salted water to keep them soft. This step is optional.
Step 3: Temper the Whole Spices
  1. Heat butter and oil in a heavy-bottomed pan. Add bay leaf, cardamoms, cloves, and cinnamon. Sauté for about 30 seconds until aromatic.
Step 4: Cook the Gravy
  1. Pour in the tomato-cashew puree and cook over medium heat for 10–12 minutes until the oil begins to separate. Stir occasionally.
Step 5: Season the Gravy
  1. Add Kashmiri red chili powder, garam masala, sugar or jaggery, and salt. Cook for another 2 minutes. Add a splash of milk or water if the gravy becomes too thick.
Step 6: Finish with Cream and Paneer
  1. Reduce the heat and stir in the fresh cream. Add the paneer cubes and gently mix. Sprinkle crushed kasuri methi and add the remaining butter.
Step 7: Rest and Serve
  1. Cover the pan and allow the curry to rest for 5 minutes so the flavors develop. Garnish with cream and fresh coriander before serving hot.

Notes

- Soaking cashews before blending creates a smoother and creamier gravy.
- Straining the puree gives the curry a restaurant-style silky texture.
- Avoid adding cream over high heat to prevent splitting.
- Paneer can be replaced with tofu for a vegan version.
- Fresh cream can be substituted with cashew cream or almond cream.
- Air fry paneer cubes at 180°C for 7–8 minutes for a lighter option.
- For smoky dhaba-style flavor, use the dhungar method with hot charcoal and ghee.
- Leftover Paneer Butter Masala can be used in wraps, pizzas, pasta, stuffed parathas, or biryani.
- Refrigerate leftovers in an airtight container for up to 3 days.
- Freeze the gravy separately for up to 1 month and add fresh paneer and cream while reheating.