Making creamy, restaurant-style Paneer Butter Masala at home is easier than you might think! This mild, sweet curry brings together onions, tomatoes, cashews, cream, and butter to create a smooth, delicious sauce that goes perfectly with garlic naan or jeera rice.


Paneer is one of those ingredients that you can never get tired of. Mix it with green peas, and you have matar paneer. Combine it with spinach, and it turns into palak paneer. But when you cook it with butter and cream, you end up with the delightful Paneer Butter Masala.

Every paneer dish has its own special taste, but this creamy paneer butter masala is my favorite. The rich, smooth sauce always wins me over. Some people also call it Paneer Makhani – they’re nearly the same. While a few ingredients might differ, both have that signature creamy base, so I like to treat them as one.

Simple and Delicious Paneer Butter Masala Recipe
Ingredients

  • Paneer: 250 grams, cut into cubes
  • Onion: 1 large, diced
  • Tomato: 2 large, pureed
  • Ginger-Garlic Paste: 1 tablespoon
  • Cashews: 10-12, soaked in warm water for 10 minutes
  • Butter: 2 tablespoons
  • Fresh Cream: 1/4 cup
  • Whole Spices:
    • Bay Leaf - 1
    • Cinnamon Stick - 1 small piece
    • Cloves - 2
  • Spices:
    • Red Chili Powder - 1/2 teaspoon
    • Kashmiri Red Chili Powder - 1/2 teaspoon (for color)
    • Garam Masala - 1/2 teaspoon
    • Cardamom Powder - 1/4 teaspoon
    • Sugar - 1 teaspoon
    • Salt - to taste
    • Kasoori Methi (Dried Fenugreek Leaves) - 1 teaspoon, crushed

Preparation
You'll need to do a bit of simple preparation work before starting this tasty recipe.

1. Soak 10 to 12 cashews in ⅓ cup of hot water for about 20 to 30 minutes.
2. While the cashews are soaking, get the other ingredients ready. Chop the tomatoes and cut the paneer into cubes.
3. Add 2 cups of chopped tomatoes to a blender and blend until smooth. Set the tomato puree aside.
4. To make the ginger-garlic paste, take a 1-inch piece of peeled ginger and 3 to 4 small or medium garlic cloves. Blend them together until you get a semi-smooth or fine paste. Set it aside.

Instructions

  1. Start with the Base
    In a pan, melt 1 tablespoon of butter over medium heat. Add bay leaf, cinnamon, and cloves, then sauté until they release their aroma. Add the onions and cook until they turn golden. Mix in ginger-garlic paste and sauté for another minute until fragrant.
  2. Add Tomatoes and Cashews
    Add the pureed tomatoes and soaked cashews. Season with salt and red chili powder, and cook this mix for 10-12 minutes, or until the oil starts separating from the mixture.
  3. Blend the Sauce
    Let the mixture cool a bit, then blend it until smooth. This creamy base is what gives paneer butter masala its luscious texture.
  4. Prepare the Final Dish
    In the same pan, melt the remaining butter. Add Kashmiri red chili powder and sauté for a few seconds to bring out its color. Pour the blended sauce back into the pan. Add garam masala, cardamom powder, and sugar. Mix well.
  5. Finish with Paneer and Cream
    Gently add the paneer cubes into the sauce and cook for 5-7 minutes. Pour in the fresh cream and crushed kasoori methi, stirring gently. Let it simmer for a few more minutes on low heat to let the flavors meld together.
  6. Serve and Enjoy
    Serve hot with naan, rice, or roti. Garnish with a little extra cream for a lovely finish.

Tips for the Best Paneer Butter Masala

  • Use White or Sweet Onions: They add a mild sweetness to the gravy without overpowering it.
  • Balance the Sweetness: A little sugar goes a long way to balance the rich flavors in the sauce.
  • Don’t Overcook the Paneer: To keep it soft, cook the paneer only for a few minutes. 
  • Add Cream Last: Stir in the cream toward the end to keep the sauce smooth and prevent it from curdling.

Reheating Tips
Paneer Butter Masala thickens as it cools. If you’re reheating, add a splash of water to thin it out a bit.

Substitute for Cream
If you’re out of cream, coconut milk works too. Or, blend a few reserved cashews with milk for a similar creamy texture.

This recipe brings out the rich, creamy texture that’s loved in restaurant-style paneer dishes. Perfect for a cozy dinner, this Paneer Butter Masala is sure to please everyone at the table!