Paneer Butter Masala is a luxurious North Indian vegetarian curry featuring tender paneer cubes cooked in a velvety, tomato-cashew based gravy enriched with butter, cream, and fragrant spices. This mildly spiced, slightly sweet dish pairs perfectly with naan, roti or jeera rice, making it a favorite in Indian cuisine. With my video and step-by-step guide you can easily make this most flavorful, tasty and restaurant style Paneer Butter Masala recipe at home!
Why This Paneer Butter Masala Is Loved By So Many
Paneer Butter Masala, also known as Butter Paneer is a rich and creamy North Indian dish made with Indian cottage cheese (paneer) simmered in a mildly spiced, buttery tomato and cashew sauce called makhani gravy.
Often seen as the vegetarian take on a classic makhani-style curry, Paneer Butter Masala offers the same creamy, spiced gravy, but with paneer. It is one of the most popular paneer dishes across India, and for good reason.
The smooth and velvety gravy strikes a perfect balance between the gentle acidity of tomatoes and the subtle sweetness of cream. The result? A nearly addictive sauce that clings beautifully to soft paneer cubes.
Table of Contents
This recipe is based on the traditional makhani-style gravies that are loved across North India. During my cooking school days, I learned the fundamentals of making this rich, buttery tomato sauce – and over time, I’ve perfected a version that’s completely vegetarian and made from scratch.
It brings back memories of my early days experimenting in the kitchen, testing the balance of flavors until it felt just right. Even now, the aroma of simmering tomatoes and butter takes me right back – it’s a recipe that has stayed close to my heart over the years.
With my easy and delicious recipe, you can prepare this beloved dish at home without any fuss. It’s so simple, you can even make it on busy weeknights – just 20 minutes of prep and about 25 minutes on the stove.
This Paneer Butter Masala recipe is one of the most popular on the blog and has been tried, tested, and loved by thousands of readers. Don’t just take my word for it – scroll down to the comments to see the amazing feedback from our readers and fans.
What Goes Into This Recipe – With Helpful Swaps
1. Tomatoes: Tomatoes form the base of the makhani sauce, so it’s important to use ripe, red, and slightly sweet tomatoes. If fresh ones aren’t in season, canned whole tomatoes are a great substitute; they’re picked at peak ripeness and often have better flavor than purée.
2. Cashews (or Substitutes): Cashews add creaminess and a subtle sweetness that balances the tang of tomatoes. If you’re allergic to nuts or don’t have cashews, soaked and peeled almonds are a good alternative. For a completely nut-free version, try my Paneer Makhani which uses cream only.
3. Cream: Cream thickens the sauce and makes it rich. You can skip it for a lighter version, or use coconut cream as a vegan substitute; though note it will slightly alter the flavor.
4. Butter: A small amount of butter adds richness and that classic “buttery” taste without overpowering the dish. Stick to the recommended quantity to avoid heaviness. Vegan butter or neutral oil can be used for plant-based versions.
5. Paneer: Soft, fresh paneer makes all the difference. Homemade paneer is always best, but high-quality store-bought paneer also works well. If using store-bought, follow the prep instructions on the pack. For vegan alternatives, substitute tofu, tempeh, or seitan.
6. Spices & Herbs: The spice list is simple: Kashmiri red chili powder or deghi mirch gives the dish its signature orange-red color. Garam masala adds warmth, and kasuri methi (dried fenugreek leaves) brings depth; skip it if unavailable. Fresh coriander leaves make a great garnish.
If you love the creamy, mildly spiced, and restaurant-style flavors of Paneer Butter Masala, here are some other paneer recipes you might enjoy. These gravies are rich, flavorful, and perfect with naan, roti, or rice:
- Shahi Paneer – Luxuriously creamy with cashews, almonds, onions, and spices.
- Paneer Pasanda – Stuffed paneer in a delicately sweet, creamy gravy.
- Paneer Lababdar – A restaurant-style favorite with a hint of sweetness.
- Paneer Makhanwala – Another classic with a buttery tomato-cashew base, slightly spicier than PBM.
- Paneer Handi – Creamy and aromatic; paneer cooked in a spiced gravy in a handi.
How to Make Paneer Butter Masala
You will have to do some light prep work before you begin making this delicious recipe. It starts with soaking your cashews, making tomato puree and blending soaked cashews.
Preparation
1. Soak 18 to 20 cashews in ⅓ cup hot water for 15 to 20 minutes.
2. While the cashews are soaking, you can prep the other ingredients. It’s time for chopping tomatoes, chopping and preparing the ginger-garlic paste, and slicing paneer into cubes.
3. To make the ginger garlic paste, crush a 1 inch piece of peeled ginger with 3 to 4 small to medium-sized garlic cloves in a mortar & pestle. Continue crushing until it is a semi-fine or fine paste. Keep aside.
Note: Don’t add any water while crushing ginger & garlic.
4. After 15 to 20 minutes, drain the water and add the soaked cashews to a blender or mixer-grinder.
Also, add 2 to 3 tablespoons fresh water (or as much as is required to blend to a fine paste).
5. Blend to a smooth paste without any tiny bits or chunks of cashews. Remove the cashew paste from the blender and set it aside.
6. In the same blender, add 2 cups of diced or roughly chopped tomatoes.
Note: There’s no need to blanch the tomatoes or to wash the blender pitcher before blending.
7. Blend to a smooth tomato puree. Set aside.
Note: Don’t add any water while blending the tomatoes.
Make The Base Masala
8. Heat a thick bottomed pan or a heavy pan. Keep the heat to a low or medium-low. Add 2 tablespoons (or 3 to 4 tablespoons for a richer version) butter in a pan. Either salted or unsalted butter can be used.
Tip: Alternatively, you can add 1 tablespoon oil + 1-2 tablespoons of butter to the pan. Adding oil prevents the butter from browning too quickly.
9. Keep the the heat to a low. Add 1 medium-sized tej patta and fry for 2 to 3 seconds, or until fragrant.
10. Add the prepared crushed ginger-garlic or 1 teaspoon ready-made ginger-garlic paste.
11. Sauté until the raw aroma of the ginger-garlic disappears, about 10 to 12 seconds.
12. Pour in the prepared tomato purée.
Note: Be careful while adding the purée as it may splutter.
13. Mix it very well with the butter.
14. Begin to cook the tomato purée on a low to medium-low heat. Stir at intervals.
15. The tomato purée mixture will start simmering.
16. If the tomato purée splutters too much while cooking, then cover the pan partly with a lid or cover fully with a splatter guard (channi lid).
17. Continue stirring occasionally.
18. Simmer the purée for 5 to 6 minutes.
19. Add 1 teaspoon Kashmiri red chili powder or deghi mirch.
You can also opt to add just ½ teaspoon Kashmiri red chili powder, or ¼ – ½ teaspoon of cayenne, paprika or any other variety of red chilli powder that you prefer.
20. Mix well and continue to stir and sauté the tomato purée.
21. Sauté till the butter starts leaving the sides of the pan and the entire tomato purée mixture comes together as more of a thick paste.
Note: This entire cooking/sautéing process takes about 14 to 17 minutes on a low to medium-low heat. Time will vary depending on the thickness of the pan, size, the intensity of flame etc.
Add Cashew Paste
22. Now add the prepared cashew paste.
23. Mix the cashew paste very well with the cooked tomato puree and continue to stir and sauté on a low to medium-low heat.
After adding cashew paste, be sure to continuously stir the gravy.
24. Sauté until the cashew paste is cooked and the oil begins to leave the sides of the masala. The cashew will cook quickly, just around 3 to 4 minutes on a low heat. And don’t forget to keep on stirring non-stop!
25. Next add 1.5 cups water.
Make Paneer Butter Masala
26. Mix the water very well with the tomato-cashew masala. If there are lumps, then break them with a spoon or use a wired whisk for mixing.
27. Let the curry simmer and come to a boil on a low to medium-low heat. Stir occasionally.
28. After 2 to 3 mins, add ginger julienne (about 1-inch ginger – cut in thin, matchstick-like strips). Reserve a few for garnishing. The curry will begin to thicken.
29. After 3 to 4 minutes, add 1 or 2 slit green chiles.
30. Also add salt to taste and, if necessary, ¼ to 1 teaspoon sugar depending on the sourness of the tomatoes.
Tip: If you add cream, then you will need to add less sugar. You can also opt to omit sugar entirely if you prefer.
31. Mix very well and simmer for a minute.
32. After the gravy thickens to your desired consistency, then add the paneer cubes (200 or 250 grams).
Tip: Keep in mind the consistency you want before you add paneer, as you will be cooking the paneer for just a few seconds, until it is warmed through. You can also fry the paneer and then add it once the gravy is to your liking.
33. Stir and mix the paneer cubes gently in the gravy. You can switch off the heat at this point.
Tip: If your paneer still tastes raw at this point, leave the heat on low until after you add the cream in step 35.
34. Now quickly add 1 teaspoon crushed dry fenugreek leaves (kasuri methi leaves) and 1 teaspoon garam masala to the gravy.
Note: The addition of crushed dry fenugreek leaves gives a restaurant flavor to this curry, but it is optional and can be skipped.
35. Next add 2 to 3 tablespoons of low-fat or light cream or 1 to 2 tablespoons of heavy whipping cream.
36. Stir gently but well. If you haven’t yet, switch off the heat.
37. Serve Paneer Butter Masala hot garnished with 1 to 2 tablespoons of chopped coriander leaves (cilantro) and the remaining ginger julienne. You can also drizzle some cream or dot with butter while serving. Enjoy!
Serving Ideas for Every Occasion
– Eat with the Staple Indian Bread – Roti: Paneer butter masala gravy has a slightly sweet taste and is very mildly spiced. This makes it an excellent gravy to enjoy with Roti or Paratha.
– With Other Indian Breads: Another great combination for this dish is Naan, Tandoori Roti or Roomali Roti. The soft texture of these breads complements the rich and creamy gravy beautifully.
– With Rice: Paneer butter masala also pairs wonderfully with steamed basmati rice or Jeera Rice. The lightly spiced rice balances the richness of the gravy.
– Try These Too:
- Serve it as part of a North Indian thali with Dal Makhani and Boondi Raita.
- Pair with Peas Pulao or Saffron Rice for a festive feel.
- Add a side of Onion Salad or Pickled Onions for crunch and acidity.
- Round off the meal with a glass of Sweet Lassi or Chaas (Buttermilk)
Expert Tips
- Tomato Purée: Be sure that your tomatoes are puréed very well. If you want, you can also strain the tomato purée.
- Cooking Tomato Purée: The tomato purée has to be cooked really well. For a visual cue that you have cooked it well enough, the butter should leave sides of the sautéed tomato puree. If the tomato puree is not sautéed well, the raw flavor of tomatoes will be felt in the dish.
- Cashew Paste: To blend cashews to a fine consistency, you should soak them in hot water for about 15 minutes. Also, be sure to use raw cashews rather than roasted.
- Taste and Flavor: If the gravy tastes tangy or sour, then balance it out with a bit of sugar (up to 1 teaspoon) or cream. Also, note that if you add cream then you will likely have to add less sugar in the gravy.
- Frying Paneer: You can fry the paneer cubes if you want and then add in the prepared gravy or sauce.
- Kasuri Methi Tip: Always crush kasuri methi between your palms before adding. This releases its aroma better and enhances flavor.
- Consistency Fix: If your gravy becomes too thick after resting, add a splash of hot water and gently reheat while stirring until it reaches the desired consistency.
FAQs
Tomatoes & Gravy Related Questions
Yes, but if it’s very tangy, add up to 1 teaspoon of sugar to balance the flavor. That said, canned whole tomatoes that you purée yourself tend to taste better than store-bought purée.
Yes, you can. It slightly reduces cooking time, but the taste remains the same. You can also strain the purée for an extra smooth texture.
Use ripe, red, and firm tomatoes that are slightly sweet and not too sour. Roma tomatoes are ideal. In India, opt for large salad tomatoes, not small desi ones.
Add more cream and a bit of sugar to balance the tanginess.
Onions, Cashews & Substitutes
Onions are not traditionally used in makhani gravy and will alter the flavor. If you still want to include them, add ¼ to ⅓ cup finely chopped onions or ½ cup onion paste. Sauté after the tej patta until light golden.
Always use raw cashews for a smooth and creamy paste.
Use unsweetened cashew butter, or soak almonds in hot water, peel, and blend to a smooth paste. Almond powder or almond meal can also work.
Butter, Cream & Vegan Questions
Yes, use ghee (clarified butter) or a neutral-tasting oil.
Milk is not recommended as it may curdle with the tomatoes. You can try milk powder — start with ½ tablespoon and add more only after tasting. Avoid going beyond 1 tablespoon, or the dish may become too sweet.
Yes, but keep in mind the final dish will have a coconut flavor.
Avoid adding honey while the curry is hot, as heated honey is considered toxic. You may add it when the dish is just warm.
Spices, Herbs & Flavor Adjustments
Kasuri methi are dried fenugreek leaves that add a lovely aroma. If you don’t have them, skip or use a small pinch of ground fenugreek seed powder.
Simply skip it.
Paneer Texture & Handling Tips
Overcooking paneer causes it to become dense and rubbery. Add it at the end and simmer only briefly.
You can lightly pan or shallow fry paneer until golden. Avoid over-frying to keep it soft.
Paneer that has too much moisture, especially homemade, may crumble. Press it well before using.
Other Common Questions
Paneer Butter Masala has a creamy, mildly sweet gravy made with butter, tomatoes, and cashews. Paneer Tikka Masala uses grilled marinated paneer and has a spicier, onion-tomato-based gravy.
It’s just another name for Paneer Butter Masala. Both refer to the same dish.
More Paneer Recipes To Try!
Paneer Recipes
Paneer Recipes
Paneer Recipes
Paneer Recipes
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Paneer Butter Masala Recipe (Restaurant Style)
Ingredients
For cashew paste
- 18 to 20 cashews – whole
- ⅓ cup hot water – for soaking cashews
For tomato puree
- 2 cups tomatoes – diced, or 300 grams tomatoes or 4 to 5 medium sized, pureed
For ginger-garlic paste
- 1 inch ginger – peeled and roughly chopped
- 3 to 4 garlic cloves – small to medium-sized, peeled
Other ingredients
- 2 tablespoons Butter or 1 tablespoon oil + 1 or 2 tablespoons butter
- 1 tej patta (Indian bay leaf), optional
- ½ to 1 teaspoon Kashmiri Chilli Powder or deghi mirch or ¼ to ½ teaspoon cayenne pepper or paprika
- 1.5 cups water or add as required
- 1 inch ginger – peeled and julienned, reserve a few for garnish
- 1 or 2 green chili – slit, reserve a few for garnish
- 200 to 250 grams Paneer (Indian cottage cheese) – cubed or diced
- 1 teaspoon dry fenugreek leaves (kasuri methi) – optional
- ½ to 1 teaspoon Garam Masala or tandoori masala
- 2 to 3 tablespoons light cream or half & half or 1 to 2 tablespoons heavy cream – optional
- ¼ to 1 teaspoon sugar – optional, add as required depending on the sourness of the tomatoes
- salt as required
For garnish
- 1 to 2 tablespoons coriander leaves – chopped, (cilantro) – optional
- 1 inch ginger – peeled and julienned
- 1 tablespoon light cream or 1 tablespoon heavy cream – optional
- 1 to 2 teaspoons Butter – optional
Instructions
Preparation
- Soak cashews in a hot water for 15 to 20 minutes. When the cashews are soaking, you can prep the other ingredients like chopping tomatoes, preparing ginger-garlic paste, slicing paneer etc.
- Then drain and add the soaked cashews in a blender or mixer-grinder.
- Add 2 to 3 tablespoons water and blend to a smooth and fine paste without any tiny bits or chunks of cashews.
- In the same blender add the roughly chopped tomatoes. No need to blanch the tomatoes before blending.
- Blend to a smooth tomato puree. Set aside. Don’t add any water while blending the tomatoes.
Making tomato gravy
- Melt butter in a pan on a low heat. Add tej patta and fry for 2 to 3 seconds or till the oil become fragrant.
- Add ginger-garlic paste and sauté for about 10 to 12 seconds till the raw aroma disappears.
- Add the tomato puree and stir well. Cook for 5 to 6 minutes stirring a few times.
- Next add kashmiri red chili powder and stir again. Continue to sauté till the oil starts to leave the sides of the tomato paste. The tomato paste will thicken considerably and will start coming together as one whole lump.
- Then add cashew paste and stir well. Sauté the cashew paste for a few minutes till the oil begins to leave the sides of the masala paste.
- The cashew paste will begin to cook fast. Approx 3 to 4 minutes on a low heat. So keep stirring non-stop.
Making paneer butter masala
- Add water and mix very well. Simmer on a low to medium-low heat.
- The curry will come to a boil.
- After 2 to 3 minutes of boiling, add ginger julienne. Reserve a few for garnishing. The curry will also begin to thicken.
- Add julienned ginger and green chillies, salt and sugar and simmer till the curry begins to thicken.
- After 3 to 4 minutes, add slit green chillies. also add salt as per taste and ½ to 1 teaspoon sugar (optional).
- You can vary the sugar quantity from ¼ tsp to 1 teaspoon or more depending on the sourness of the tomatoes. Sugar is optional and you can skip it too. If you add cream, then you will need to add less sugar.
- Mix very well and simmer for a minute.
- After the gravy thickens to your desired consistency, then add the paneer cubes and stir gently. I keep the gravy to a medium consistency.
- After that add crushed kasuri methi (dry fenugreek leaves), garam masala and cream. Gently mix and then switch off the heat.
Serving Suggestions
- Garnish the curry with coriander leaves and ginger julienne.
- You can even dot the gravy with some butter or drizzle some cream.
- Serve Paneer Butter Masala hot with plain naan, garlic naan, roti, paratha or steamed basmati or jeera rice or even peas pulao.
- Side accompaniments can be an onion-cucumber salad or some pickle. Also serve some lemon wedges by the side.
Video
Notes
- Butter: Use good quality butter. You can add both unsalted or salted butter. Also both yellow butter or white butter can be added.
- Tomatoes: It is best to use fresh, ripe red tomatoes. Add tomatoes which have sweet-tangy taste. Do not add tomatoes which are too sour or tart.
- Tomato puree: Blend the tomatoes to a smooth puree. If you want you can strain the tomato puree also.
- Sautéing tomato puree: The tomato puree has to be cooked and sautéed very well. Oil or butter should leave sides of the cooked tomato puree so that the raw flavor of tomatoes is not felt in the dish.
- Paneer: Best to use homemade soft paneer or a good quality store brought fresh paneer
- Cream: The amount of cream can be adjusted as per your taste.
- Cashew paste: To blend cashews to a fine consistency, it is better to soak them in hot water for 15 to 20 minutes. Use a good blender to get a smooth creamy cashew paste.
- Replacing cashews: If you don’t have cashews then add almonds. Blanch the almonds in hot water for 30 minutes. Then peel and blend them till smooth with some water.
- Sugar: Addition of sugar depends upon your taste as well as the tanginess present in the tomatoes. So add as per taste. If you add cream then you might have to add less sugar.
- Taste and flavor: If the butter paneer masala gravy tastes tangy or sour, then to balance the sour taste you can add a bit of sugar or cream. But do not add too much sugar as then the gravy becomes too sweet. Also, do note if you add cream then you might have to add less sugar in the sauce or gravy.
- Color: To get the bright orangish-red color, its best to use kashmiri red chilli powder or deghi mirch instead of artificial food colors. Using deep red colored tomatoes also contribute to a lovely orange color in the gravy.
- Frying paneer (optional): You can fry the paneer cubes if you want and then add in the prepared sauce or gravy.
Nutrition Info (Approximate Values)
Paneer Butter Masala recipe from the archives was first published in April 2013.
Tried and loved it!
Hi Dassana, leaving a 5 star rating because i know this recipe is good but I probably made some mistakes.
Can you please advise why it tasted slightly less flavourful.
I added ghee instead of butter, did not add garlic or cream and had brined the paneer.
Rest of the steps were followed to the T.
Looking forward to your reply.
Pratik
Hi Pratik, thank you so much for the 5-star rating and for trusting the recipe. I really appreciate it.
Based on what you have shared, a few small changes might have affected the flavor:
– Using ghee instead of butter: Ghee is absolutely fine to use, but it has a slightly different flavor and doesn’t give the same creamy mouthfeel that butter adds. The gravy may feel a bit lighter or less rich.
– Skipping garlic: Garlic brings a nice warm, savory base note to the dish. Leaving it out can make the flavors feel a little flat.
– No cream: This is a key ingredient in Paneer Butter Masala. Cream not only adds richness but also balances the acidity of the tomatoes and the heat of the spices. Without it, the curry can taste a bit sharp or less rounded.
– Brined paneer: If the paneer was soaked in salted water, it may have added extra saltiness or slightly changed the overall taste.
I hope this helps you to figure out what might have caused the change in flavor. Do give the recipe another try whenever you can. I am sure it’ll turn out even better next time.
Regards,
Dassana
Great, thank you Dassana, really going to give this another try.
I am so glad that you take the time to respond to each comment.
Also I had tried your Chole Masala! it was awesome. Also tried your Nylon Dhokla recipe.
I am new to cooking and been experimenting, and trying to understand the science of everything.
Tracking your blog closely, got introduced to it recently through another blogger on substack.
Loving it.
So happy to read your comment. Really glad the Chole Masala and Khaman worked out well for you. It’s great that you’re experimenting and trying to understand the science behind cooking; that’s how we all learn. Thanks for following the blog and sharing such kind words. Means a lot!
This is one of my most favourite recipes from this blog. Yummy!
I just made this for dinner and taste tested it. It’s out of this world good. Such a simple recipe and didn’t take long. Dinner is not for 5 more hours. How do I wait to eat it lol!
Haha, this made me smile! So glad to hear you loved it. Thank you for trying the recipe and for your lovely feedback.
One of best paneer butter masala recipe I have tried on internet.
Thank you so much.
I added the soaked cashews with the tomatoes in the blender, the gravy became kind of slimy no matter how long I cooked it, not sure why?
It is better to grind or blend them separately. The tomatoes will take more time to cook than the cashews.
Since they were ground and blended together, this could be reason for the slimy texture. Cashews do that when ground with only one or two ingredient and it also depends on the quantity of ingredients taken.
My children’s favourite.
Can we add amchur powder for a kick?
It can change the taste and make it somewhat sour. If you like, you can experiment by adding a bit of it.
So great. Thanks for sharing step by step 🤝♥️
The recipe is so simple and easy to follow and the end result was so good. Better than what we get in restaurants. Thank you for the recipe.
All your recipes are amazing 👏
Thanks a lot.
Very good! 👌🏽✨
Thank you.
Hi Dassana,
Would you recommend preparing the sauce the night before and then heating the sauce and adding the paneer the next day to save time when hosting?
Thank you
Yes of course you can do that. Prepare the sauce and refrigerate it. Just don’t add the cream, dry fenugreek leaves, garam masala powder. You add these three ingredients when you add the paneer.
What a delicious dish, my daughter loved it so much that she asked me to make it again.
Thank you so much 🙏🏽
Happy to hear! Thanks for the lovely feedback and the rating as well.