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Best Paneer Butter Masala Recipe

Packed with creamy tomato gravy and tender paneer cubes, this Paneer Butter Masala recipe brings restaurant-style Indian flavors to your kitchen. It's a classic North Indian curry beloved for its rich, buttery sauce and subtle sweetness, perfect for weeknights or impressing guests.

With simple pantry ingredients and clear steps, you'll master the silkiest, most flavorful paneer butter masala—no special equipment or hard-to-find spices required. Whether you're new to Indian cooking or a seasoned pro, this recipe is designed for maximum flavor and minimum fuss.

Why you'll love it
  • Authentic restaurant-style taste at home
  • No complicated ingredients—easy to find or substitute
  • Rich, creamy sauce that's never oily
  • Perfect for vegetarians and crowd-pleasing
  • Customizable spice level
  • Quick weeknight dinner or special occasion meal
Prep 15 minutesCook 25 minutesTotal 40 minutesServes 4Main Course

Ingredients

  • 14 oz (400 g) paneer, cut into 3/4-inch cubes
  • 2 tbsp unsalted butter (28 g)
  • 1 tbsp neutral oil (15 ml)
  • 1 large yellow onion, chopped (about 1 1/2 cups)
  • 3 medium tomatoes, chopped (about 2 cups) or 1 cup (240 g) canned crushed tomatoes
  • 1-inch piece ginger, peeled and minced
  • 4 garlic cloves, minced
  • 1/2 cup (60 g) raw cashews
  • 1 1/2 tsp ground coriander
  • 1 1/2 tsp garam masala
  • 1 tsp Kashmiri chili powder or sweet paprika
  • 1/2 tsp ground cumin
  • 1/2 tsp turmeric powder
  • 1 1/4 tsp kosher salt, or to taste
  • 1 cup (240 ml) water
  • 1/2 cup (120 ml) heavy cream or half-and-half
  • 1 tbsp sugar
  • 1 tsp dried fenugreek leaves (kasuri methi), optional
  • Fresh cilantro, for garnish

Instructions

  1. Heat 1 tbsp butter and oil in a large skillet over medium heat. Add chopped onion and sauté for 4-5 minutes until soft and translucent.
  2. Add ginger and garlic; cook for 1 minute until fragrant.
  3. Add chopped tomatoes and cashews. Cook, stirring, for 6-8 minutes until tomatoes are soft and oil begins to separate.
  4. Stir in coriander, garam masala, Kashmiri chili powder, cumin, turmeric, and salt. Cook for 1 minute.
  5. Remove from heat. Let mixture cool slightly, then blend to a smooth paste with 1 cup water (use a blender or immersion blender).
  6. Return paste to skillet. Stir in remaining 1 tbsp butter and sugar. Simmer on low for 3-4 minutes, stirring occasionally.
  7. Add paneer cubes and simmer gently for 3-4 minutes to heat through.
  8. Stir in cream and kasuri methi (if using). Simmer for 2-3 minutes. Taste and adjust salt or sugar as needed.
  9. Garnish with fresh cilantro. Serve hot with naan, roti, or rice.

Make It Your Way

Instant Pot Version

Use the sauté function to cook onions, ginger, garlic, tomatoes, and cashews. After adding spices, add 1/2 cup water, lock the lid, and pressure cook for 5 minutes. Quick release, blend, then finish as above (using sauté to simmer sauce, add paneer and cream).

Air Fryer Version

For extra flavor, air fry paneer cubes at 375°F (190°C) for 5-7 minutes until slightly golden. Add to the sauce as directed.

Ingredient Substitutions

If you can't find paneer, use firm tofu or halloumi. Replace cashews with blanched almonds or 1/4 cup (60 ml) heavy cream for nut allergies. Substitute Kashmiri chili powder with mild paprika. Kasuri methi can be omitted or replaced with a pinch of dried oregano for aroma.

Expert Tips

  • For the creamiest sauce, always blend the cooked onion-tomato mixture until completely smooth.
  • Soak store-bought paneer in hot water for 10 minutes to soften before adding to the curry.
  • Don’t skip the cashews—they are key for natural thickness and sweetness.
  • Add cream at the end to prevent curdling and maintain a silky texture.
  • Kasuri methi (dried fenugreek leaves) adds authentic aroma, but use sparingly.
  • Balance sweetness and tang: adjust sugar and salt after adding cream.

What to Serve It With

Serve paneer butter masala piping hot with soft naan, roti, or steamed basmati rice. Pair with cucumber raita or a crisp salad for a restaurant-style meal.

Storage & Reheating

Store leftovers in an airtight container in the fridge for up to 3 days. Reheat gently on the stove or microwave. The curry can be frozen for up to 2 months (add cream after thawing for best results).

Frequently Asked Questions

Can I make paneer butter masala vegan?

Yes! Use firm tofu in place of paneer, plant-based butter, and coconut cream or cashew cream instead of dairy cream.

How do I prevent paneer from getting chewy?

Soak paneer cubes in hot water for 10 minutes before adding to the curry, and avoid overcooking them in the sauce.

Can I use canned tomato puree instead of fresh tomatoes?

Yes, use 1 cup (240 g) canned tomato puree or crushed tomatoes for convenience and consistent flavor.

Is paneer butter masala spicy?

It’s mildly spiced and creamy. For more heat, add extra chili powder or a green chili when sautéing onions.

What’s the difference between paneer butter masala and paneer tikka masala?

Paneer butter masala is sweeter and creamier, while paneer tikka masala uses grilled paneer and a spicier, smokier gravy.

Can I make this ahead?

Absolutely! Make the sauce up to 2 days ahead; add paneer and cream when reheating for the best texture.

Do I have to use cashews?

Cashews give the sauce its signature creaminess, but you can use blanched almonds or omit for nut allergies—just add extra cream.

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