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Paneer Butter Masala Recipe

3 Mins read

Paneer Butter Masala is one of India’s most popular paneer gravy recipes, and with good reason! Indian cottage cheese cubes are smothered in a creamy, lightly spiced tomato sauce that is downright delicious. With my video and step-by-step guide you can easily make this restaurant style Paneer Butter Masala recipe at home!

About Paneer Butter Masala Recipe

This Paneer Butter Masala recipe is a rich and creamy dish of paneer (Indian cottage cheese) in a tomato, butter and cashew sauce that is known here as “makhani gravy.” The acidity of the tomatoes and the sweetness of the cream make for a velvety, nearly addictive sauce. 

Also known as “Butter Paneer,” this yummy and popular vegetarian dish is derived from the recipe for Butter Chicken, a.k.a. Chicken Makhani, that I learned to make during my cooking school days. I know, I know, the thought of me cooking with meat sounds insane. It seems nearly a lifetime ago!

ingredients for paneer butter masala

Here’s what you’ll need for a fantastic Paneer Butter Masala or Paneer Makhani:

Ingredients for Paneer Butter Masala gravy:

Paneer Butter Masala Recipe

Also Read: Homemade Lasagna

Butter, Oil and Cream: Three different fats go into the recipe at different points to create that luscious, creamy gravy. But don’t worry, this doesn’t translate to a really heavy, high on calorie recipe. The nutritional value of one portion size is only

Dried Kashmiri Red Chillies: This is a key ingredient. These dried chillies provide colour but don’t have a lot of spice which is perfect for this recipe. If you don’t have this, you can substitute with 1-2 tablespoons Kashmiri Chilli Powder that can be added along with the other ground spice powders when the blended gravy is simmering

Onions & Tomatoes: The proportion of onions to tomatoes in this recipe is 1:6. Onions are used for the base but its the tomatoes that add most of the flavour

Ginger Garlic Paste: You can use minced ginger and garlic separately but for convenience ginger garlic paste is made in large amounts and refrigerated in every Indian household. You can also buy ready made paste easily at supermarkets

Cashew nuts: To reduce the amount of cream in the recipe, we use cashews which provide the same creaminess and density but without the calories

Khus Khus/ Poppy Seeds: Khus Khus or white poppy seeds is used for flavour as well as creaminess

Spices: Both whole spices and ground spices are used in this recipe. Whole spices such as bayleaf, cardamom, cloves and cinnamon add the initial flavouring to the onion tomato mixture. You can add them as is or make a bouquet garni like I do so that it easy to fish these out before blending. Dry spices like chilli powder, turmeric, garam masala are added later while the blended gravy is simmering for a bit of heat and to pack in the flavour

Tomato Ketchup: A super non traditional ingredient but it really works here because it has the perfect blend of sweet, salty, tangy. A little goes a long way!

Kasuri Methi: Kasuri Methi is basically dried fenugreek and used extensively in Indian cuisine to add a touch of smokiness and finish the dish. A little goes a long way, but stocking this in the pantry is a very good idea!

how to make paneer butter masala

Here are quick steps to make paneer butter masala:

Step by step pictures showing how to make paneer butter masala

Also Read: French Onion Soup Recipe

  1. Bouquet Garni: Start with wrapping the spices in a muslin or cheesecloth to make a bouquet garni. This helps add all the flavour without having to fish out the spices one by one later
  2. Cook the kashmiri chillies, onion, tomato, cashew, poppy seeds and spices together till the tomatoes are soft and pulpy. This is the base of the gravy
  3. Remove the bouquet garni (whole spices) and the blend the onion tomato paste to really smooth. You can add some water if required
  4. Simmer the gravy along with powdered spices and salt in butter for 10-15 minutes till you can see a little oil floating to the top
  5. Smoke the gravy with my dungar method (see video). This takes the gravy to the next level!
  6. Add kasuri methi, paneer and cream, cook for a minute or two and you are done!


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