Mushroom Paneer

Mushroom paneer with step by step pics. This is a restaurant style recipe with a super delicious taste. The gravy or curry is creamy, slightly tangy and a bit sweet with tender mushrooms and soft paneer in it. Serve it with roti, naan, paratha, jeera rice or steamed basmati rice for a rich and tasty meal.

Both white button mushrooms and paneer are favorite at home. so there are many recipes I make with them. What better than a lovely combination of both mushroom and paneer in one dish. There is another Awadhi recipe of a semi dry curry which I have already shared before having both mushrooms and paneer – Dhingri dolma.

To make this mushroom paneer, I use the same ingredients as that for dhingri dolma and just change the method slightly with addition of some more ingredients. Few more delicious variations you can make with paneer or mushrooms are:

• Aloo paneer
• Matar paneer
• Mushroom curry
• Aloo matar paneer

Preparing this restaurant style paneer mushroom recipe takes some time, but worth the effort. You can make it for special occasions or party or whenever you want to have a rich curry dish.

You can serve mushroom paneer grvay with tandoori roti, phulka or naan or paratha or even pooris. It also goes well with a mildly spiced rice like jeera rice, matar pulao, ghee rice or saffron rice.

How to make Mushroom Paneer

1. Rinse or wipe dry 200 grams of white button mushrooms. Slice off a bit of the base stalk. Then slice or chop the mushrooms. Keep aside.

2. Peel, rinse and chop 1 large onion (115 grams onion), 4 to 5 garlic cloves and 1 inch ginger. Also, chop 1 large tomato (115 grams tomatoes).

You will need 1 cup chopped onion, ¾ cup chopped tomatoes, 1 teaspoon chopped garlic and 1 teaspoon chopped ginger.

3. Heat 2 tablespoons of oil in a pan or kadai. Add the chopped onion.

4. Stir and mix.

5. Stirring often saute on low to medium heat.

6. Saute till the onions start turning golden.

7. Then add the chopped ginger and garlic.

8. Saute on low heat for a couple of seconds or till the raw aroma of both ginger and garlic goes away.

9. Next add the chopped tomatoes. I suggest using tomatoes that are not too sour or tangy. Otherwise the gravy will become sour.

10. Then add 2 tablespoons of whole cashews.

11. Mix very well and begin to saute the tomatoes on a low heat.

12. If the tomatoes start sticking to the pan, then you can sprinkle some water. Stir and continue to saute.

13. Saute till the tomatoes soften. Switch off the heat and let this onion-tomato mixture become warm or cool down at room temperature.

Do note that the tomatoes have to be softened well and cooked completely before you grind or blend them.

14. Once cooled, then take this mixture into a grinder or blender jar.

15. Add 3 to 4 tablespoons of water and grind or blend to a smooth fine paste. There should be no chunks of tomatoes or cashews in the paste. Keep it aside.

Making gravy

16. Now heat 1 tablespoon of oil in the same pan. Add 1 small to medium tej patta (Indian bay leaf) and ½ teaspoon shahi jeera (caraway seeds).

If you do not have shahi jeera, then you can use jeera (cumin seeds) or else skip shahi jeera. You can also add 2 tablespoons of oil instead of 1 tablespoon oil.

You can use any neutral flavored oil. For a more richer flavor you can use ghee instead of oil.

17. Fry till the shahi jeera splitters on low heat.

18. Now add the chopped mushrooms.

19. Stir and mix them well.

20. Begin to saute them on a low heat stirring often. Stir continuously after adding mushrooms so that they do not stick to the pan.

21. The mushrooms will release water when cooking.

22. Continue to saute stirring often till all the water dries up.

23. The entire mixture should be dry before you proceed to the next step. Now add ¼ teaspoon Kashmiri red chilli powder and ¼ teaspoon black pepper powder.

For a more spicy taste, you can add ½ to 1 teaspoon of Kashmiri red chili powder.

24. Stir and mix very well.

25. Now add the ground onion-tomato-cashew paste.

26. Stir and mix very well.

27. On a low heat saute stirring non-stop for 4 to 5 minutes.

28. Add 1 cup of water or add water as required.

29. Mix again very well.

30. Season with salt as per taste and mix again.

31. On a low heat let the gravy come to a boil.

32. Then add ¼ teaspoon garam masala powder and ¼ teaspoon crushed kasuri methi (dry fenugreek leaves).

33. Mix again well.

34. Now add 200 grams of paneer chopped in cubes or squares.

35. Then add ¼ cup grated or crumbled paneer. You can use 3 to 4 cubes from the 200 grams paneer and crumble them and add.

36. Mix very well but gently. Simmer for a few seconds and switch off the heat.

Check the taste. If you get a tangy taste from the tomatoes, then you can add ½ teaspoon of sugar. You can also add 2 to 3 tablespoons of cream at this step and mix well.

37. Add 1 tablespoon of chopped coriander leaves.

38. Mix well and serve mushroom paneer with khasta roti, phulka, naan, jeera paratha and even pooris. You can also serve mushroom paneer with a mildly spiced rice like cumin rice, peas pulao, ghee rice.

More Paneer recipes

• Chilli paneer
• Paneer butter masala
• Palak paneer
• Malai kofta

Please be sure to rate this recipe in the recipe card below if you have made it. For more vegetarian inspirations, Sign Up for my emails or follow me on Instagram, Youtube, Facebook, Pinterest or Twitter.

This Mushroom Paneer post from the archives first published in November 2017 has been republished and updated on 27 June 2022.