Name: Paneer Butter Masala Recipe
Prep time: 15 min
Cook time: 25 min
Total time: 40 min
Cuisine: Indian
Ingredients: 18 to 20 cashews – whole; ⅓ cup hot water – for soaking cashews; 2 cups tomatoes – diced (approx. 300 grams or 4 to 5 medium-sized tomatoes), pureed; 1 inch ginger – peeled and roughly chopped; 3 to 4 garlic cloves – peeled, small to medium-sized; 2 tablespoons butter or 1 tablespoon oil plus 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 as needed; 1 inch ginger – peeled and julienned (reserve a few for garnish); 1 or 2 green chilies – 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, adjust to taste depending on tomato sourness; Salt as required; 1 to 2 tablespoons coriander leaves (cilantro), chopped – optional; 1 inch ginger – peeled and julienned; 1 tablespoon light cream or 1 tablespoon heavy cream – optional; 1 to 2 teaspoons butter – optional

Jump to Recipe· 4.4 from 42 reviews

There is something irresistibly comforting and rich about the Paneer Butter Masala Recipe that makes it a cherished favorite across Indian cuisine lovers everywhere. This creamy, buttery tomato-based curry envelops soft cubes of paneer in a velvety sauce bursting with warm spices, combined with just the right balance of tangy and sweet flavors. Whether you are a seasoned cook or trying to impress your friends with a special homemade meal, this dish delivers a perfect harmony of taste and texture that’s both satisfying and incredibly delicious.

Ingredients You’ll Need

A close-up view of a white bowl filled with soaked cashew nuts in clear water. The cashews are light beige, plump, and smooth, floating and settled at the bottom of the bowl. The bowl has a simple white inside with a black rim, and it sits on a white marbled surface. The overall image shows a soft, natural light highlighting the shiny texture of the soaked cashews. photo taken with an iphone --ar 4:5 --v 7

This Paneer Butter Masala Recipe calls for simple yet essential ingredients that come together beautifully to create a luscious curry. Each component, from the creamy cashew paste to the aromatic spices, plays a vital role in building the rich flavor and vibrant color of the dish.

Cashews: Soaked and blended into a paste, cashews add creaminess and a subtle nutty flavor that thickens the sauce perfectly.

Tomatoes: Fresh and pureed, tomatoes provide the tangy base that brightens the curry with natural acidity and depth.
Ginger-Garlic Paste: A fresh blend brings pungency and warmth, creating an inviting spice foundation.
Butter and Oil: Butter enriches the dish, while oil helps sauté the spices without burning them.

Kashmiri Chili Powder: Offering a bright red hue and mild heat, this chili powder enhances both color and subtle spiciness.
Paneer: Soft cubes of Indian cottage cheese provide the hearty protein element, soaking up the delicious sauce.
Fenugreek Leaves (Kasuri Methi): Adds an earthy, aromatic touch that elevates the flavor complexity.

Garam Masala: A blend of warming spices that rounds out the curry with fragrant notes.
Cream: Light or heavy, cream introduces silkiness, balancing the tang and spice beautifully.
Sugar and Salt: To taste, these round out the flavors, taming tomato acidity and enhancing all the spices.

How to Make Paneer Butter Masala Recipe

The image shows a white bowl with dark handles filled with creamy orange curry. Inside the curry, there are five large yellowish square pieces, likely paneer, covered partly with swirls of white cream. The curry is garnished with small green leaves and thin yellow strips on top. The bowl is placed on a dark gray stone board, and part of a white bowl with beige flatbread and some light green cucumber slices are visible nearby. The background has a white marbled texture. photo taken with an iphone --ar 4:5 --v 7

Step 1: Prepare the Cashew Paste and Tomato Puree

Start by soaking 18 to 20 whole cashews in hot water for about 15 minutes to soften them. Meanwhile, dice fresh tomatoes and blend them into a smooth puree. Blend the soaked cashews with a bit of their soaking water until creamy and set aside. These two pastes form the luscious base of your curry.

Step 2: Sauté Aromatics and Spices

Heat 1 tablespoon of oil and 1 to 2 tablespoons of butter in a pan. Add a whole Indian bay leaf if you have one for subtle fragrance. Toss in the ginger-garlic paste and sauté until the raw smell disappears and the mixture turns golden, releasing a wonderful aroma that signals layers of flavor ahead. Sprinkle in Kashmiri chili powder for that signature red color and mild heat, stirring quickly to wake up the spices without burning them.

Step 3: Cook the Tomato Puree and Cashew Paste

Pour the tomato puree into the pan and cook on medium heat, stirring often until oil separates from the mixture. This slow simmer deepens the sweetness and removes excess moisture. Add the smooth cashew paste next and blend it seamlessly with the tomato base. Pour in 1.5 cups of water gradually to create the perfect sauce consistency and bring it to a gentle simmer.

Step 4: Add Paneer and Seasonings

Gently fold in the paneer cubes alongside julienned ginger and slit green chilies for a fresh bite. Sprinkle 1 teaspoon of dried fenugreek leaves and ½ to 1 teaspoon of garam masala for that nuanced flavor signature to the Paneer Butter Masala Recipe. Adjust salt to taste and stir gently to coat the paneer without breaking the soft cubes.

Step 5: Finish with Cream and Butter

Turn off the heat and stir in 2 to 3 tablespoons of light or heavy cream, along with a dollop of butter to enrich the sauce further. If you prefer a slight sweetness to balance the tangy tomatoes, add a small pinch of sugar. Give it one last gentle stir and prepare to impress.

How to Serve Paneer Butter Masala Recipe

Garnishes

Fresh garnishes make all the difference for both flavor and presentation. Sprinkle chopped coriander leaves and a few pieces of julienned ginger on top to brighten up the dish. A drizzle of cream and a small dollop of butter on the serving bowl add that irresistibly glossy finish that says “dig in.”

Side Dishes

The creamy richness of Paneer Butter Masala Recipe pairs beautifully with soft, fluffy basmati rice or warm, buttery naan bread. For a complete meal, consider serving it alongside simple vegetable raita or a crisp cucumber salad to add refreshing contrast.

Creative Ways to Present

Elevate your presentation by serving your Paneer Butter Masala in individual ramekins with a swirl of cream and a sprig of cilantro on top. Another fun twist is to stuff the paneer cubes into parathas or wraps with a drizzle of the sauce for a handheld treat that’s bursting with flavor.

Make Ahead and Storage

Storing Leftovers

Leftover Paneer Butter Masala Recipe keeps very well in an airtight container stored in the refrigerator. Consume within two to three days for the best flavor and texture. The sauce thickens slightly upon standing, so be ready to add a splash of water or cream when reheating.

Freezing

This dish freezes nicely if you want to prepare it ahead of time. Use freezer-safe containers, leaving some space for expansion. Freeze for up to 2 months. Note that paneer texture may soften slightly after thawing but will still taste delicious.

Reheating

To reheat, warm the Paneer Butter Masala gently in a pan over low heat, stirring occasionally. Add a little water or cream if the sauce feels too thick. Avoid microwaving on high heat to preserve that creamy texture and avoid heating the paneer unevenly.

FAQs

Can I use store-bought paneer for this recipe?

Absolutely! Store-bought paneer works well and saves time. Just make sure to cut it into uniform cubes and soak in warm water briefly if it feels too firm, which helps soften it.

Is Paneer Butter Masala Recipe spicy?

The spice level can be easily adjusted. Using Kashmiri chili powder keeps the heat mild and adds vibrant color, but you can add more green chilies or cayenne pepper for extra kick if you prefer.

Can I make this recipe vegan?

Yes, substitute paneer with tofu and replace butter and cream with plant-based alternatives such as coconut cream and vegan margarine to create a delicious vegan version.

What can I use instead of cashews?

Cashews add creaminess, but you can substitute with blanched almonds or even soaked bread soaked in milk for a slightly different texture. However, cashews are the traditional choice for the best richness.

How thick should the gravy be?

The gravy should be smooth and moderately thick, coating the back of a spoon but still flowing easily. If it’s too thick, add a bit more water or cream; if too thin, simmer a bit longer to reduce.

Final Thoughts

There’s truly something magical about making the Paneer Butter Masala Recipe at home—it’s a dish that brings warmth, indulgence, and a touch of celebration to any meal. With its irresistible flavors and creamy, dreamy texture, it’s sure to become a new favorite in your kitchen. So go ahead, give it a try, and watch your family and friends fall in love bite after bite!