Paneer Butter Masala
This post may contain affiliate links. Read our disclosure policy
Paneer Butter Masala is a luscious vegetarian curry featuring soft paneer pieces in a smooth and creamy tomato gravy. Enjoy with bread or rice and bring this well-loved restaurant dish to your family tonight!
Paneer Butter Masala is a popular Indian restaurant dish, but to be honest I’ve only made it once at home before sharing this recipe, and I’m not sure I’ve ever had it at a restaurant! Maybe I have, but if I did then I have no memory at all!
If you’re subscribed to me on YouTube (and if you’re not then please do so! I release all the recipe videos at the same time as the written recipes go live, and I do find that video recipes can give you a great visualization of how to prepare the dish!) you know that I’ve been hosting an open YouTube collaboration throughout the month of August 2021 which I called #mycookingjourney2021. This collab is in honour of India’s 75th Independence Day on August 15th! The objective for this collaboration is to have home cooks who have never delved into the exciting world of Indian cooking brush aside the excuses and finally get in the kitchen and start creating! Even if you’re not a newbie, you can benefit from the collaboration by creating some new extravagant fusion recipes! I took on the challenge too, and it’s been so much fun! I’ve made some new fusion recipes, and I really have been perfecting some classic recipes that I never gave much thought to have. I’ve learned so much along the way too!
A classic recipe I had never made before but had been meaning to was exactly this, Paneer Butter Masala. I’m not sure why I never ate it at the restaurant, to be honest with you. As I’ve said in my other recipes lately, when going to the restaurant my sister and I would stick to a set menu: Paneer Makhani, Murgh Makhani, Dal Makhani, all served with Butter Naan… I think you’re seeing a pattern here! “Makhan” translates to “butter” in Hindi, so if you didn’t see the pattern, now you really do! We just knew what we liked and wanted to re-live the goodness over and over again! Comment below - do you love trying new restaurant dishes or do you keep eating the same thing over and over again?
With the challenge upon me, I thought paneer butter masala would be an excellent vegetarian dish to try out at home. I was torn between choosing this and Shahi Paneer and Paneer Lababdar. By the way, which one of these two should I make next? Let me know in the comments! It’s so hard to pick what paneer dishes to try!
Ultimately, out of the battle of the paneer curries, I picked Paneer Butter Masala dish simply because of the word “butter” if I’m being completely honest! If you’ve been following me for awhile, you know how much I love butter chicken… so Paneer Butter Masala must be epic, right?
Right!
I was blown away in my first attempt at the dish, and I couldn’t wait to make it again! You’ll love this heavenly aromatic gravy and perfect little soft paneer cubes! This is sure to be a luxurious meal if you pair it with rice or bread, so no need to go out on the town this weekend and enjoy this restaurant specialty right from home! Let’s get to the recipe!
what is paneer?
Paneer translates to “Indian Cottage Cheese.” However, if you’re not in India, don’t get confused and think you can go to the grocery store and get a tub of cottage cheese and think you can use that for paneer! No no please don’t do that! When I first arrived to Canada, I did think “Indian cottage cheese” meant I could use “cottage cheese,” so that’s what I did to make paneer makhani. Let me just say it was pretty disappointing… as in inedible. The cottage cheese just crumbled away into the gravy and it tasted so horrendous! Don’t make the same mistake I did, please!
Paneer is made from milk curdles. You can purchase it from your local South Asian or Indian market, some grocery stores, or you can make it yourself! Paneer is a well-loved vegetarian protein among Indians. I know it’s certainly my favourite vegetarian protein source! I always say, if you’ve got paneer, you probably won’t miss meat! I’m a huge chicken lover, but I don’t mind having vegetarian versions of dishes if I’ve got paneer! Scroll to the bottom of this post for a list of more awesome paneer recipes! Trust me, if you’ve never had paneer before, your life will change when you first have it, and you’ll be craving more!
is Shahi Paneer vs. Paneer Makhani vs. Paneer Butter Masala vs. Paneer Tikka Masala
Often Paneer Makhani, Shahi Paneer, Paneer Tikka Masala and Paneer Butter Masala are confused to be one and the same. I’m here to break the news to you and announce that no, they are most definitely not! If you were to look on Google at pictures - or anywhere on the Internet, really - you’d think they’re all the same dishes by visual alone. However, there are slight differences in the gravies and in how the paneer is prepared.
This is your grab-and-go guide to the differences between those four dishes! By the end, you’ll be a pro at distinguishing restaurant-style paneer dishes! Here’s your gold badge of achievement!
Shahi Paneer
Shahi is the reference to the royal title of Shahanshah from the Mughal empire. Shahi paneer is usually much sweeter in taste, which can be attributed to various nuts and onions used in the sauce. It is also much lighter than Paneer Butter Masala or Paneer Makhani since it does not need to be cooked in butter. The gravy is much smoother is has a yellowish-orange colour.
Paneer Butter Masala
The distinctions comes from the use of onions, whole spices and a spicier flavour profile compared to the sweetness in Shahi Paneer or Paneer Makhani. The colour is usually closer to the bright reddish orange of Paneer Makhani.
Paneer Tikka Masala
In this dish, the paneer is marinated and cooked on a skewer. Then, the paneer is added to the gravy. The smokiness of the paneer is incorporated into the gravy. This is the vegetarian version of Chicken Tikka Masala, and this dish is a bit spicier than the two mentioned above.
Paneer Makhani
Each restaurant has its own way to prepare their version of this dish. Usually this dish is the vegetarian alternative to Murgh Makhani (Butter Chicken) and the paneer is tossed with the smooth, sweet and spicy Makhani sauce. The key elements being cream, cashews and tomatoes.
why make paneer butter masala?
Well, why wouldn’t you? Seriously! There are so many reasons why this is an amazing restaurant-style dish that can easily be brought to your kitchen. You can skip the trip to the restaurant with this fantastic Paneer Butter Masala recipe!
Here’s why you should be making this luscious paneer dish for dinner tonight:
[Almost] one-pan! You can make the entire dish with just one pan and a blender!
Easy! Although this is a restaurant-quality dish, the steps are pretty straightforward!
Fast! Paneer doesn’t have to cook in this recipe, so you just need to make your gravy and throw in your paneer! This can be ready easily in 30 minutes!
Scalable: You can easily increase the amount of
Delicious! Nothing to add here! If you love a creamy and rich tomato gravy, then this will be heaven for you! Make it and see for yourself!
Have I convinced you? I hope so, so get your shopping list ready and let’s get started!
Do I have to use cashews?
I’m using cashews to add some extra creaminess to the gravy. I tested the gravy without them, but I find that the cashews really enhance the gravy and I strongly recommend you add them. However, if you have a nut allergy, then of course you can omit these!
can i use whole tomatoes to make the gravy?
For this recipe, I’m using passata strained tomatoes, because they are so convenient to prepare any curry. But, feel free to use fresh tomatoes as well. 3-4 medium tomatoes for every 1 Cup of passata. You can either puree the tomatoes as is or boil the tomatoes for 5-8 minutes first, peel, and then puree for a smoother sauce.
Can I use Fresh Homemade Paneer?
Yes, definitely! I’m sure using your own freshly prepared paneer will make this dish even more satisfying! I used store-bought paneer because that’s more convenient for me. Back in India, you could get fresh paneer from the local market, so it wasn’t a common thing for folks to make it at home. However, I’ve received many messages from YouTube and Instagram followers that they cannot find paneer near them. In that case, yes, certainly make your own! It’s not a difficult task to do, but it does require some effort and patience. Check out How to Make Homemade Paneer and then you’ll be all set! Using homemade paneer will definitely be amazing in this recipe, since your paneer will be super soft and delicious that you can’t compare to the packaged stuff!
what sweetener should I use for paneer butter masala?
Many recipes use sugar as the sweetener. However, I like the natural sweetness of honey, so that’s what I’ve used here, and I also use it in my other curry recipes. If you want to use sugar, then feel free to do so! Or use any other sweetener of your choice.
what cream should I use in paneer butter masala?
You may see most recipes use heavy cream, or 35% fat cream. I’m using 10% cream, also known as table cream, for this recipe, and I usually use it in all my curry recipes. This is because I find you can more easily control the consistency of the sauce using 10% cream as opposed to 35% since it is thinner. It’s also easy to refresh the dish if you’ve made it in advance by adding a splash of 10% cream.
Can I make paneer butter masala ahead of time?
Of course you can! If you’ve got leftovers, then they’ll certainly be delicious the next day. This is also an awesome dish to make for a dinner party. You can have it all ready to go and keep it in the pan until you’re ready to serve. Reheat Paneer Butter Masala over the stove by bringing it up to a simmer on medium-low heat.
If you’re reheating leftovers, you can reheat in the microwave or over the stove, as described above. To store leftovers, transfer the contents into an airtight container and place in the fridge. Leftover Paneer Butter Masala will stay fresh in the fridge for 2-3 days.
To reheat in the microwave, heat it for 2-3 minutes, stirring at one minute intervals until the paneer and gravy have been entirely warmed through.
is paneer butter masala sweet or spicy?
I would say neither! It’s actually a bit of both sweet and spicy! Paneer Butter Masala has some essence of spice from the red chili powder, but it’s balanced out with the sweetness from the honey. I’ll be honest here in that I made my Paneer Butter Masala more on the sweet side since I’ve added a fair amount of honey in the gravy! It’s up to you, if you’d like less sweetener, then feel free to cut down the quantity!
Tips for The best paneer butter masala
Dry roasting the spices helps release the natural oils from the spiciness and further develop the flavours.
For a completely smooth gravy, you have the option to process the sauce through a fine mesh sieve, before adding the cream.
Cook the onions and tomatoes really well, until the mixture is fluffy and dried out.
Ingredients for paneer butter masala
Let’s review the ingredients we’ll need to make the most amazing Paneer Butter Masala you’ve ever had! For all measurements with the full ingredient list, make sure to scroll to the bottom of this post for the FULL PRINTABLE RECIPE CARD, so you can save this recipe for later!
Ghee: Although you can use only butter, the combo of ghee+butter is yummy.
Butter: I prefer to use unsalted butter so I can have complete control over the flavour of the dish. It wouldn’t be Paneer Butter Masala without butter, right! An integral component of the dish and you won’t want to skimp out!
Onions: Unlike Paneer Makhani, onions are used in this gravy. A big booboo people make is thinking that the Makhani sauce, or the “butter chicken sauce” used in butter chicken and paneer makhani has onions! No, no that does NOT have onions, but this one does! That’s one of the biggest distinguishing factors to separate Paneer Makhani and Paneer Butter Masala! We’ll be making an onion, ginger and garlic puree and add that to our gravy.
Ginger & garlic: Blended with onions to make a paste.
Green cardamom pods: Known as the Queen of all spices due to its extravagant, intoxicating aroma. Usually associated with green cardamom, the flavours are slightly sweet, minty and pine-like and adds a wonderful scent to the sauce once the tomatoes are blended in the food processor. There are also several healing and health benefits from cardamom, you can read more about it here.
Dried Kashmiri red chili: Adds colour and a warm spiciness.
Bay leaf: We’ll use one bay leaf here.
Cumin seeds: Cumin seeds will be toasted with the following whole spices.
Cinnamon: A whole cinnamon stick, used to add some fragrance to the gravy.
Cloves: One whole clove.
Cashews: These really help add richness and naturally thicken the sauce. I enjoy roasting the cashews with the whole spices and butter to lightly roast the cashews. *You can omit cashews if you have a nut allergy
Passata: Passata is strained tomatoes. I love using passata because you don’t have to do the extra step of pureeing fresh tomatoes. You just add the passata to your gravy!
Deggi Mirch: This ingredient is key to add a natural red colour to the gravy without the use of any artificial colours. Made from mild Kashmiri red chilies, they are not too spicy and can be easily found at an Indian grocer. You can also find it on Amazon.
Honey: Although sugar can be an alternative to honey, I strongly recommend using honey. I find the sweetness from sugar is too intense, while honey carries a much softer, smoother sweetness which is much easier to control to reach the perfect level of balance between sweet and spicy in the sauce.
Dried Fenugreek Leaves: Also know as Kasoori Methi in Hindi, these leaves are crushed before adding to the gravy. While bitter in taste when dry, once added to gravy, they “wake up!” and add a beautiful fragrance and sweetness to the sauce.
Garam Masala: Usually added at the the end of the cooking process, this combination of several roasted whole spices add the final touch of warmth and spice to the sauce.
Cream: Traditionally heavy cream is used to finish of the sauce and give it the signature orange colour, I find it is sometimes too rich. Instead, I prefer adding 10% cream, which helps thin out the gravy to my liking.
Paneer: The final addition is the paneer. You may be surprised to learn that the paneer is added directly to the sauce without any cooking. Paneer itself is ready to eat, while some recipes require you to lightly fry the paneer before tossing in the sauce, I quite enjoy the soft, texture lathered in the sauce. I find lightly frying the panner, while helps the paneer hold its shape, it makes it firm.
how to make the restaurant-style paneer butter masala
Heat a pan on medium or medium-high heat and add all of the whole spices, along with the cashews.
Continue toasting while stirring until the spices are aromatic and lightly toasted.
Once toasted, transfer the spices to a food processor. Add the onions, ginger, garlic and a splash of water. Puree until the mixture is completely smooth.
Heat a pan on medium heat and add ghee or butter. Once hot, add the pureed onion puree and deggi mirch.
Stir well and cook until the mixture appears dried out. Stir often to ensure the mixture doesn't get stuck. Add a splash of of water, if it does start to stick.
Once the mixture is fluffy and is easy to slide around the pan, add the pureed tomatoes along with a pinch of salt.
Once again, stir well and cook until the mixture appears dried out. Stir often to ensure the mixture doesn't get stuck. Add a splash of of water, if it does start to stick.
Add butter and honey and stir will, simmer for 1-2 minutes.
Crush in the dried fenugreek leaves, mix well and cook for up to a minute.
Finish sauce by adding in the cream and garam masala. Add cubes of paneer and mix well. Bring the sauce to a lazy simmer and cook for 1-2 minutes. Season to taste and serve hot!
Serving Suggestions for creamy paneer butter masala
Restaurants serve their Paneer Butter Masala with bread or rice, so of course you can do the same to make it a complete meal!
If you want, you could also serve with rice! Here are some options:
Loved paneer butter masala? Try these other paneer recipes!
Watch How to Make paneer butter masala here
Let me know what you think of this recipe in the comments! If you’ve tried this recipe, be sure to post it on social media and tag it with #cookingwithanadi and mention me @cookingwithanadi. Thank you!
Paneer Butter Masala
Ingredients
- 2-3 Green cardamom pods
- 1 Bay leaf
- 1 medium Dried Kashmiri red chili
- 1/2 tsp Cumin seeds
- 1 inch stick Cinnamon
- 2-3 Cloves
- 20 Cashews
- 1 Tbsp Ghee or Butter
- 1 medium onion, roughly diced
- 1/2 inch piece ginger
- 2-3 cloves garlic
- 2 - 2 1/2 Cups Passata
- 1 tsp Deggi Mirch
- 1 Tbsp butter
- 2 Tbsp Honey (or sweetener of choice)
- 1/2 Tbsp Kasoori Methi/dried fenugreek seeds
- 1/2 tsp Garam Masala
- 1 1/2 - 2 Cups 10% or Half and Half Cream
- 150g Paneer (store-bought or homemade), cubed
- salt to taste
Instructions
- Heat a pan on medium or medium-high heat and add all of the whole spices, along with the cashews.
- Continue toasting while stirring until the spices are aromatic and lightly toasted.
- Once toasted, transfer the spices to a food processor. Add the onions, ginger, garlic and a splash of water. Puree until the mixture is completely smooth.
- Heat a pan on medium heat and add ghee or butter. Once hot, add the pureed onion puree and deggi mirch.
- Stir well and cook until the mixture appears dried out. Stir often to ensure the mixture doesn't get stuck. Add a splash of of water, if it does start to stick.
- Once the mixture is fluffy and is easy to slide around the pan, add the pureed tomatoes along with a pinch of salt.
- Once again, stir well and cook until the mixture appears dried out. Stir often to ensure the mixture doesn't get stuck. Add a splash of of water, if it does start to stick.
- Add butter and honey and stir will, simmer for 1-2 minutes.
- Crush in the dried fenugreek leaves, mix well and cook for up to a minute.
- Finish sauce by adding in the cream and garam masala. Add cubes of paneer and mix well. Bring the sauce to a lazy simmer and cook for 1-2 minutes. Season to taste and serve hot!
Nutrition Facts
Sugar (grams)
18.22 gSodium (milligrams)
571.13 mgSat. Fat (grams)
21.58 gProtein (grams)
13.91 gNet carbs
22.80 gFiber (grams)
1.46 gFat (grams)
34.67 gCholesterol (grams)
105.22 mgCarbs (grams)
24.26 gCalories
453.07 kcal
Follow me
Meet Anadi
Welcome to Cooking With Anadi. This platform is all about making cooking exciting and finding new ways to bring classic flavours and recipes at your service. Join me in my personal journey in the world of cooking. Hope you have a great ride!
