Paneer Butter Masala
Paneer Butter Masala is a beloved Indian dish that has earned its place in the hearts of food lovers around the world. With its rich, creamy sauce and tender paneer cubes, it’s no wonder this dish is a staple in Indian restaurants and home kitchens alike. The combination of spices and flavors creates a comforting meal that is perfect for any occasion. Whether you are hosting a dinner party or just indulging in a cozy night in, this recipe for Paneer Butter Masala will elevate your dining experience to new heights.
Why Paneer Butter Masala is Worth Your Time

There’s something truly magical about Paneer Butter Masala. It’s not just the creamy texture or the fragrant spices; it’s the way it brings people together. This dish pairs beautifully with naan, roti, or steamed rice, making it a versatile choice for any meal. The creamy tomato-based sauce is rich in flavor, and the addition of spices creates a depth that is both satisfying and comforting. Plus, it’s a vegetarian dish that even meat-lovers can appreciate, making it a perfect crowd-pleaser.
What’s in the Bowl
The beauty of Paneer Butter Masala lies in its simple yet flavorful ingredients. Here’s what you’ll need:
- 10 oz paneer (about 300 grams) – The star of the dish, paneer adds a delightful texture.
- Warm salted water – For soaking the paneer to keep it soft.
- 3 tablespoons ghee – This clarified butter adds richness and flavor.
- 1 bay leaf (preferably Indian) – Adds an aromatic touch.
- 3 green cardamom pods – For a hint of sweetness.
- 1-inch cinnamon stick – Provides warmth and depth.
- 1 large onion (red or yellow, thinly sliced) – A base for the gravy.
- 1 small green chili (finely chopped, optional) – For heat, adjust to taste.
- 5 medium tomatoes (ripe, roughly chopped) – Creates the sauce base.
- 18 whole cashews (roasted, lightly salted or unsalted) – For creaminess and richness.
- 1 teaspoon salt – To enhance flavors.
- 1 teaspoon sugar – To balance acidity.
- 1 teaspoon Kashmiri chili powder – For color and mild heat.
- 1 teaspoon garam masala – Adds warmth and complexity.
- 1 teaspoon coriander powder – For a fresh, herbal flavor.
- 1 cup water – To adjust the gravy consistency.
- 3 tablespoons ghee – For the final finish.
- 1 teaspoon fenugreek leaves (dried, hand-crushed) – For a unique flavor.
- 2 tablespoons heavy cream – For richness and garnish.
- 2 tablespoons fresh cilantro (or coriander) – For garnish and freshness.
- Steamed rice – To serve alongside.
Before You Start: Equipment
Before diving into making this delicious dish, gather the following equipment:
- Large skillet or frying pan – For cooking the masala.
- Blender or food processor – To puree the tomato mixture.
- Wooden spoon – For stirring and mixing.
- Measuring spoons and cups – For accurate ingredient measurements.
- Knife and chopping board – For slicing and chopping ingredients.
Stepwise Method: Paneer Butter Masala

Step 1: Prepare the Paneer
Start by soaking the paneer cubes in warm salted water for about 15-20 minutes. This helps to keep them soft and prevents them from becoming rubbery when cooked.
Step 2: Cook the Spices
In a large skillet, heat 3 tablespoons of ghee over medium heat. Once hot, add the bay leaf, green cardamom pods, and cinnamon stick. Sauté for a minute until fragrant.
Step 3: Sauté the Onions
Add the thinly sliced onions to the skillet. Cook them until they turn golden brown, stirring occasionally. This should take about 8-10 minutes.
Step 4: Add the Green Chili and Ginger-Garlic Paste
If you’re using green chili, add it now along with 2 tablespoons of ginger-garlic paste. Sauté for an additional 3-4 minutes until the raw smell disappears.
Step 5: Add Tomatoes and Cashews
Next, add the chopped tomatoes and cashews to the skillet. Cook until the tomatoes are soft and mushy, about 5-7 minutes. Stir occasionally to prevent sticking.
Step 6: Spice It Up
Sprinkle in the salt, sugar, Kashmiri chili powder, garam masala, and coriander powder. Stir well to combine and cook for another 2-3 minutes.
Step 7: Blend the Gravy
Once the tomato mixture is cooked, let it cool slightly, then transfer it to a blender. Blend until smooth. Return the smooth gravy to the skillet.
Step 8: Adjust the Consistency
Add 1 cup of water to the blended gravy, stirring to combine. Bring it to a gentle simmer over medium heat.
Step 9: Add Paneer and Cream
Gently add the soaked paneer cubes to the simmering gravy and stir carefully to coat. Add the heavy cream and fenugreek leaves, mixing well. Cook for another 5 minutes, allowing the flavors to meld.
Step 10: Final Touches
Finish with an extra drizzle of ghee for richness. Taste and adjust seasoning if necessary. Garnish with fresh cilantro and serve hot with steamed rice or naan.
Seasonal Ingredient Swaps

If you’re looking to customize your Paneer Butter Masala with seasonal ingredients or substitutions, consider the following:
- Fresh tomatoes: Use canned tomatoes in the off-season for a similar flavor.
- Paneer: Substitute with tofu for a vegan option.
- Heavy cream: Use coconut cream for a dairy-free alternative.
- Fresh cilantro: Swap with parsley if cilantro is unavailable.
What I Learned Testing
- The soaking step for paneer is crucial; it makes a world of difference in texture.
- Using ghee really enhances the dish’s flavor profile compared to regular oil.
- Balancing spices is key; don’t be afraid to adjust the heat according to your preferences.
- Allowing the gravy to simmer after adding the paneer helps the flavors to deepen.
Save It for Later
Paneer Butter Masala is a fantastic dish to make in advance. Store any leftovers in an airtight container in the refrigerator for up to 3 days. The flavors only get better with time! Reheat gently on the stove, adding a splash of water or cream to bring back the creamy texture. You can also freeze it for up to a month; just make sure to let it cool completely before freezing.
FAQ
Can I make Paneer Butter Masala vegan?
Absolutely! Substitute paneer with tofu, use coconut cream instead of heavy cream, and replace ghee with vegetable oil or vegan butter.
Is Paneer Butter Masala spicy?
The spice level can be adjusted to your liking. You can reduce or omit the green chili and Kashmiri chili powder for a milder version.
What can I serve with Paneer Butter Masala?
This dish pairs beautifully with naan, roti, or steamed rice. You can also serve it with a side of salad or raita for a complete meal.
Can I use store-bought tomato puree instead of fresh tomatoes?
Yes, you can use store-bought tomato puree to save time. Just make sure to adjust the seasoning accordingly, as store-bought varieties may have added salt or sugar.
Bring It Home
Cooking Paneer Butter Masala at home is not just about following a recipe; it’s about embracing the flavors and aromas that fill your kitchen. With each step, you’re bringing a piece of India into your home. The joy of sharing this dish with family and friends, paired with your favorite sides, makes it all worthwhile. So roll up your sleeves, gather your ingredients, and get ready to create a memorable meal that will have everyone asking for seconds. Enjoy the process, and savor the delicious results of your labor.

Paneer Butter Masala
Ingredients
Equipment
Method
- Start by soaking the paneer cubes in warm salted water for about 15-20 minutes. This helps to keep them soft and prevents them from becoming rubbery when cooked.
- In a large skillet, heat 3 tablespoons of ghee over medium heat. Once hot, add the bay leaf, green cardamom pods, and cinnamon stick. Sauté for a minute until fragrant.
- Add the thinly sliced onions to the skillet. Cook them until they turn golden brown, stirring occasionally. This should take about 8-10 minutes.
- If you’re using green chili, add it now along with 2 tablespoons of ginger-garlic paste. Sauté for an additional 3-4 minutes until the raw smell disappears.
- Next, add the chopped tomatoes and cashews to the skillet. Cook until the tomatoes are soft and mushy, about 5-7 minutes. Stir occasionally to prevent sticking.
- Sprinkle in the salt, sugar, Kashmiri chili powder, garam masala, and coriander powder. Stir well to combine and cook for another 2-3 minutes.
- Once the tomato mixture is cooked, let it cool slightly, then transfer it to a blender. Blend until smooth. Return the smooth gravy to the skillet.
- Add 1 cup of water to the blended gravy, stirring to combine. Bring it to a gentle simmer over medium heat.
- Gently add the soaked paneer cubes to the simmering gravy and stir carefully to coat. Add the heavy cream and fenugreek leaves, mixing well. Cook for another 5 minutes, allowing the flavors to meld.
- Finish with an extra drizzle of ghee for richness. Taste and adjust seasoning if necessary. Garnish with fresh cilantro and serve hot with steamed rice or naan.
Notes
- Soaking the paneer is crucial for the best texture.
- Use ghee for an authentic flavor boost.
- Adjust the spice levels to suit your taste.
- Let the gravy simmer after adding paneer for deeper flavors.
