Shahi Paneer Recipe (Mughlai White Gravy Paneer)

Shahi Paneer is a rich and royal vegetarian curry from Mughlai cuisine, where soft paneer cubes are simmered in a creamy, aromatic gravy made with nuts, seeds, onions, yogurt, cream, and saffron. Infused with fragrant spices, this indulgent white curry pairs well with naan, roti, or jeera rice. While Mughlai cuisine is often known for its biryanis and meat dishes, Shahi Paneer stands out as one of its most loved vegetarian recipes. The word shahi means royal, and this dish truly lives up to its name. A perfect choice for special occasions or comforting meals at home.

Shahi Paneer – Rich Mughlai Curry

Shahi Paneer is a rich and creamy North Indian vegetarian Mughlai curry known for its regal and indulgent flavors. Like I mentioned in the beginning, the term ‘shahi’ translates to ‘royal,’ indicating the dish’s opulence.

Thus, the dish can be literally translated to ‘royal paneer.’ It features paneer (Indian cottage cheese) cooked in a velvety tomato or yogurt based curry, enriched with cream, nuts and aromatic spices.

Paneer is a fresh cheese that is popular in Indian cuisine. It is made by curdling milk with a food acid (often lemon juice), then pressed into cubes.

The most notable thing about paneer cheese is that it does not melt, providing a texture similar to tofu. Shahi Paneer holds a special place in North Indian cuisine and is a favorite among vegetarians looking for rich, festive curries that offer the same luxurious flavors often found in Mughlai dishes.

While the basic method of cooking remains consistent, there are regional variations and personal adaptations of Shahi Paneer. Some versions use tomatoes and butter and others include the addition of fruits like pineapple.

I have opted not to use these ingredients, instead using yogurt, nuts and seeds to lighten up the dish considerably.

About My Recipe

The recipe is not the Punjabi version which is heavily spiced, robust and has a red or orange colored gravy that is mostly served in restaurants.

This rich and royal Shahi Paneer variation is from the Mughlai cuisine and you will see the usage of various nuts and seeds like almonds, cashews, melon seeds together with creamy yogurt, onions, fragrant spices and ghee.

Including various nuts, seeds together with onions, yogurt, spices makes for a white or cream colored gravy which is creamy, lightly sweet and a bit tangy. This shahi gravy is full of fragrant flavors due to the addition of whole spices especially saffron.

A fine paste is made of cooked onions, garlic, ginger, nuts and seeds. This nuts and onion paste is sautéed in ghee with the spices.

Later ground spices and whisked yogurt are incorporated with the paste and cooked further with the addition of some water.

When the gravy gets cooked to the right consistency, final touches are added by sprinkling cardamom powder, saffron strands and lastly the paneer cubes are mixed with the gravy with a touch of kewra water and heavy cream.

Balanced out with a smooth, creamy consistency, this version of Shahi Paneer is perfect for special occasions, festivals and celebratory meals due to its luxurious taste and appearance.

These days, we all look for simple, comforting meals to enjoy at home. If you are looking for a warm and satisfying vegetarian curry for lunch or dinner, this Shahi Paneer is a great option.

Shahi Paneer is one of my very favorite dishes and is sure to become one of yours, too. This dish is sure to fill your bellies and warm your souls.

If you enjoy Shahi Paneer, you may also like these delicious paneer curry recipes:

• Paneer Butter Masala
• Matar Paneer
• Paneer Tikka Masala
• Paneer Lababdar
• Paneer ki Sabji

How to make Shahi Paneer

While the list of ingredients for Shahi Paneer recipe is quite long, you don’t need to be intimidated. The process for making this dish isn’t particularly technical or difficult.

Preparation

1. Take the nuts and seeds – 2 tablespoons cashews, 1 tablespoon almonds, 1 tablespoon melon seeds (magaz) in a bowl and rinse them a couple of times with water.

Drain all the water and set aside.

2. Simmer the below listed ingredients in 1.5 cup water for for 8 to 10 minutes on medium-low heat.

• ½ cup chopped onions
• 2 tablespoons cashews
• 1 tablespoon almonds
• 1 tablespoon melon seeds (magaz)
• ½ teaspoon chopped ginger
• ½ teaspoon chopped garlic

3. Continue to cook until the onions become soft, then strain some of the stock (the water in which the nuts and seeds, onions were cooked). Set this stock aside for later use.

4. When cooled, place the softened onions, nuts, seeds, ginger, garlic in a blender or grinder-mixer jar. You can peel the almonds if you prefer.

5. Make a fine paste of the cooked onion mixture, adding 2 to 4 tablespoons of the strained stock or as needed.

6. Beat ½ cup fresh curd (yogurt) till smooth and set aside.

Sauté Onions & Nuts Paste

7. Heat 3 tablespoons ghee in a pan over medium-low to medium heat. Let the ghee melt. You can even use oil or butter in place of ghee.

8. Fry all the whole spices until they release their aroma in the ghee. The whole spices are listed below:

• 1 tej patta (Indian bay leaf)
• 2 to 3 cloves
• 2 to 3 green cardamoms
• 1 black cardamom
• 1 inch cinnamon
• ½ teaspoon caraway seeds (shahi jeera) – can swap with cumin seeds instead

Tip: Be very attentive here, as spices are delicate and can burn quickly if you aren’t paying attention.

Note that the whole spices are not eaten. If you prefer, you can remove the whole spices (after they are fried in the oil) excluding the caraway seeds, with a slotted spoon before adding the onion and nut paste.

9. Add the onion and nuts paste.

10. On a low to medium-low heat mix until the paste is uniform. Then sauté for 7 to 8 minutes or until the fat separates at the sides of the paste.

You will see that on further cooking the paste will thicken and become glossy. Keep stirring non-stop for even cooking. This will also prevent the paste getting burnt from the bottom.

11. Now add ½ teaspoon red chilli powder or cayenne pepper, ¼ teaspoon garam masala powder and 1 teaspoon coriander powder.

You could even replace red chilli powder with ¼ teaspoon white or black pepper powder. You could also use kashmiri red chilli powder.

12. Stir to mix well.

13. Reduce heat to a low or turn off the heat. Add the whisked yogurt, 1 to 1.5 cups of water, ½ to 1 teaspoon sugar and salt according to taste.

You can always alter the consistency of gravy by adding less or more water.

Make Shahi Paneer

14. Stir well and simmer on a low heat for 10 to 12 minutes, or until the gravy thickens.

15. Add ¼ teaspoon cardamom powder and crushed 15 to 20 saffron strands.

16. Stir and add the paneer cubes (200 grams) and 1 tablespoon heavy cream. Add 1 teaspoon of kewra water and stir (optional step). If adding butter, you can add it here. Mix well and turn off the heat.

Preferably use homemade paneer for the best texture and softness. If using store-brought paneer or frozen paneer, follow the package instructions to thaw and use it.

Tip 1: If you are a vegan, you can easily substitute tofu for the paneer.

Tip 2: If you prefer a richer version, feel free to add more cream or butter to the recipe.

17. Garnish with fresh coriander leaves or mint leaves or some saffron strands and enjoy with rice or flatbread.

Serving & Storage Suggestions

You can enjoy this creamy Shahi Paneer with Roti or Naan and even Paratha. You can also pair it with Jeera Rice, or Ghee Rice.

Shahi Paneer is best served fresh, but any leftovers can be stored in the refrigerator for up to 1 day. Let the curry cool completely before transferring it to an airtight container.

When reheating, warm it gently in a pan, on the stovetop over low heat, stirring occasionally. You can add a splash of water if the gravy has thickened.

Freezing is not recommended as the paneer may turn chewy and the creamy gravy may separate after thawing.

Cooking Notes & Tips

• Tomatoes: I have not added tomatoes to this dish since I have used yogurt (curd). But you can substitute yogurt with tomato puree in the same proportions. If adding tomatoes, then add 2 to 3 tablespoons cream as it balances the acidity and tanginess of the tomatoes.
• Nuts & Seeds Freshness: Since a major part of the sauce or gravy is made from nuts and yogurt, make sure that these ingredients are fresh. The nuts and seeds should not be rancid and the yogurt must not be sour.
• About Magaz: It is a blend of pumpkin, watermelon, cantaloupe and cucumber seeds. It is an ingredient used in Indian cuisine and can be found in Indian grocery stores. If you don’t have access to magaz or melon seeds, add a total of 2 tablespoons almonds instead. You could also only use watermelon seeds.
• Rich Variant: A very rich version of this Shahi Paneer recipe is made with adding butter and more cream. In this recipe, I have added less cream. Feel free to add more cream or use butter, if you prefer.
• Plant Based Option: Vegans can substitute the paneer with tofu and the dairy-based curd with cashew or coconut yogurt. I don’t advise using soy or peanut yogurt for this dish. If using cashew yogurt, no need to add cashews while making the paste. Alternatively, you can use tomato puree and coconut cream in place of yogurt. Use a neutral tasting oil in place of ghee.

Frequently Asked Questions

Shahi Paneer recipe from the blog archives was first published on January 2013.