Paneer Butter Masala Recipe
Paneer Butter Masala is a tasty, mildly-spiced and creamy Indian dish. It is a high-protein vegetarian dinner recipe made with soft paneer cubes cooked in a rich tomato gravy with butter and cream. Learn how to make Paneer Butter Masala, it is an easy-to-cook dinner recipe that takes around 30 minutes to prepare with simple kitchen ingredients. Serve this delicious Indian vegetarian recipe with naan or eat it with fresh rice. If you want a quick and healthy meal, this is a perfect dish. Follow these simple steps to prepare Paneer Butter Masala at home.

Ingredients List
- 250 grams paneer (cottage cheese), cut into cubes
- 1 tsp cumin seeds
- 1 tsp black peppercorns
- 4 green cardamoms
- 2 cloves
- 1 bay leaf
- 1 black cardamom
- 1-inch cinnamon stick
- 1 tbsp red chili powder
- ½ tsp turmeric powder
- 1 tsp garam masala
- 2 tsp kasuri methi (dried fenugreek leaves)
- 1 cup water (to adjust gravy consistency)
- 1 tbsp oil (for initial cooking)
- 1 tbsp butter (for tempering)
- 2 tbsp butter (for frying paneer)
- ¼ cup fresh cream (malai or heavy cream, optional but recommended)
- 1 large onion (finely chopped)
- 1 tbsp ginger-garlic paste (or crushed fresh ginger & garlic)
- 1 cup tomato puree (or 2 blended tomatoes)
- 1 cup curd (plain yogurt)
- ½ cup cashew paste (15–20 cashews blended with a little water)
- 1 tsp salt (plus ½ tsp for paneer)
- 1 tsp sugar (optional, to balance acidity)
- 3 green chilies (chopped)
- Few ginger juliennes (thin slices)
Paneer Butter Masala Recipe Instructions
Heat Oil and Butter
1. To begin making your restaurant-style paneer butter masala, heat 1 tablespoon oil in a heavy-bottomed pan. Once the oil is hot, add 1 tablespoon butter and let it melt.
Butter is essential for achieving that authentic North Indian curry flavor loved in every butter masala dish.

Add Whole Spices
2. On a low flame, add the whole spices:
- 1 teaspoon cumin seeds
- 1 teaspoon black peppercorns
- 4 green cardamoms
- 2 cloves
- 1 bay leaf
- 1 black cardamom
- 1-inch cinnamon stick
Sauté them in the butter and oil for 2 minutes. These spices form the aromatic foundation of the classic paneer butter masala recipe, filling your kitchen with the signature Indian curry fragrance.

Sauté Onions
3. Add 1 large finely chopped onion and sauté it for about 2 minutes, until golden brown.

4. Onions form the slightly sweet and rich base for the gravy for paneer butter masala.

Add Ginger-Garlic Paste and Ground Spices
5. Stir in 1 tablespoon ginger-garlic paste (or fresh crushed ginger and garlic) followed by 1 tablespoon red chili powder and ½ teaspoon turmeric powder. Sauté for a minute until the raw aroma disappears.

6. This step infuses deep flavor of Indian spices into your homemade paneer butter masala and gives it a beautiful color and warmth.

Add Tomato Puree and Cook the Masala
7. Pour in 1 cup of tomato puree, either store-bought or from blending 2 fresh tomatoes. Add 1 teaspoon salt, mix well, and cover the pan. Let it simmer until the masala turns deep red and thickens.

Add Curd and Cashew Paste
8. Add 1 cup curd (plain yogurt) and ½ cup cashew paste (blend 15–20 cashews with a little water).

9. Mix everything well. This gives the curry its signature rich and creamy texture, a must-have feature in any Dhaba-style paneer butter masala recipe.

Sauté the Paneer
10. In a separate pan, heat 2 tablespoons butter and sauté 250 grams of paneer, cut into cubes, for 1 minute.
Lightly browning the paneer on the edges gives your restaurant-like paneer butter masala a slightly roasted texture that absorbs the gravy perfectly.

Season the Paneer
11. Add 3 chopped green chilies, a few ginger juliennes, red chili powder, turmeric powder, and salt to the sautéed paneer. Toss gently for a minute.

12. Tossing step helps flavor the paneer from within, enhancing the taste of your best homemade recipe.

Combine Paneer with Masala
13. Add the seasoned paneer to the prepared butter masala gravy. Mix in 1 teaspoon garam masala, 2 teaspoons dried fenugreek leaves, and 1 teaspoon sugar.

14. Cover and simmer on low heat for 10 minutes to let the paneer soak in the rich flavors.

15. Add ¼ cup of fresh cream, mix everything well until the cream blends smoothly into the masala, giving the paneer butter masala its signature rich, velvety texture and restaurant-style taste, perfect for pairing with naan or rice.

Garnish and Serve
16. Garnish paneer butter masala with fresh chopped coriander leaves and serve hot with naan, roti, or jeera rice. This delicious and creamy Indian vegetarian curry is a crowd favorite at any dinner table or festive meal. This Indian recipe is perfect for those who love creamy and rich flavors. Whether you’re a beginner or an experienced cook, this easy to make paneer recipe has rich flavors and will surely become your favorite.

Paneer Butter Masala Variations
- You can add green peas to make Butter Paneer Masala with peas for extra texture and flavor.
- You can replace fresh cream with cashew paste for a richer and nuttier taste.
- You can use tofu instead of paneer to make a vegan version of this dish.
- You can add bell peppers for a slight crunch and added nutrition.
- You can make it spicier by adding extra red chili powder or green chilies.
- You can add a little honey instead of sugar for a natural sweetness.
- You can make it healthier by using less butter and replacing cream with yogurt.
- You can garnish with grated cheese for a cheesy twist.
This easy Indian recipe is perfect for those looking for an authentic, restaurant-style paneer dish. Try this easy paneer recipe and enjoy a healhty, homemade Indian vegetarian recipe that is perfect for dinners.
FAQs
You can use full-fat milk, cashew paste, or a mix of milk and yogurt for a lighter version.
Yes, the gravy freezes well. You can store it without paneer, and add fresh paneer while reheating for the best texture.
To keep paneer soft, soak the paneer cubes in warm water for 12-15 minutes before adding to the curry. Avoid overcooking, as it makes the paneer chewy.
Recipe Card

Paneer Butter Masala Recipe
Equipment
- 1 Heavy-bottomed pan
- 1 Blender (for tomato and cashew paste)
- 1 Knife and chopping board
- 1 Ladle or wooden spatula
Ingredients
- 250 grams paneer cottage cheese, cubed
- 1 tsp cumin seeds jeera
- 1 tsp black peppercorns
- 4 green cardamoms elaichi
- 2 cloves laung
- 1 bay leaf tej patta
- 1 black cardamom badi elaichi
- 1 inch cinnamon stick dalchini
- 1 tbsp red chili powder
- ½ tsp turmeric powder haldi
- 1 tsp garam masala
- 2 tsp kasuri methi dried fenugreek leaves
- 1 cup water adjust for consistency
- 1 tbsp oil
- 1 tbsp butter for masala
- 2 tbsp butter to sauté paneer
- ¼ cup fresh cream optional but recommended
- 1 large onion finely chopped
- 1 tbsp ginger-garlic paste or crushed fresh
- 1 cup tomato puree or 2 tomatoes blended
- 1 cup curd plain yogurt
- ½ cup cashew paste 15–20 cashews blended with water
- 1 tsp salt plus ½ tsp for paneer
- 1 tsp sugar optional
- 3 green chilies chopped
- Few ginger juliennes
Instructions
- Heat 1 tbsp oil in a pan.
- Add 1 tbsp butter. Once butter is melted, proceed to spices.
- Add cumin seeds, peppercorns, cardamoms, cloves, bay leaf, black cardamom, and cinnamon stick. Sauté all the whole spices on low flame for 2 minutes.
- Add chopped onions and cook until onions turn golden brown (about 2 minutes).
- Add ginger-garlic paste, red chili powder, and turmeric powder. Sauté the paste until fragrant.
- Add tomato puree and 1 tsp salt. Cover and cook until oil separates and masala thickens.
- Mix in curd and cashew paste. Stir to blend and cook for 5 minutes.
- In a separate pan, sauté paneer cubes in 2 tbsp butter for 1–2 minutes.
- Toss paneer with green chilies, ginger juliennes, 1/2 tsp red chili powder, 1/4 tsp turmeric, and 1/2 tsp salt.
- Add paneer to cooked masala.
- Add garam masala, kasuri methi, sugar, and optional cream with water. Simmer for 10 minutes.
- Top Paneer Butter Masala with chopped coriander. Serve hot with naan, roti, or jeera rice.
Notes
- You can add green peas, beans or bell peppers for texture.
- Use tofu instead of paneer for a vegan version.
- Substitute cream with extra cashew paste for richer flavor.
- You can use pure honey instead of sugar for natural sweetness.