This Butter Paneer (also called paneer butter masala) is luxuriously creamy, rich, and inspired by restaurant-style makhani gravies. A blend of cashews, butter, cream, and bold Indian spices creates a velvety tomato-forward sauce that pairs beautifully with soft naan or fluffy basmati rice.
Table of Contents
- The Difference Between Paneer Tikka Masala and Paneer Butter Masala
- Key Ingredients and Why They Matter
- How to Make Paneer Butter Masala
- Top 5 Tips for the Perfect Butter Paneer
- Butter Paneer Masala (Restaurant Style!) Recipe
- Serving Suggestions
The Difference Between Paneer Tikka Masala and Paneer Butter Masala
Paneer tikka masala stems from North Indian tandoori and Mughlai traditions. The paneer is typically marinated and grilled or pan-seared, giving it a smoky, high-heat flavor. The gravy tends to be spicier and tangier with pronounced aromatics.
Paneer butter masala originates from Punjabi restaurant kitchens and uses a makhani-style gravy: smooth, buttery, mildly spiced, and tomato-forward. The paneer in this dish is usually added directly to the sauce rather than grilled, producing a richer, creamier result.
In short: tikka masala is smokier and spicier; butter masala is creamier and milder, reflecting different regional cooking styles.
Key Ingredients and Why They Matter
Paneer: A firm fresh cheese that holds shape, soaks up flavor, and contrasts the silky sauce. Use fresh or good-quality store-bought paneer.
Onions, garlic, and ginger: The aromatic base that gives sweetness, warmth, and depth. Finely chopping helps produce a smooth sauce.
Spices: Garam masala, cumin, turmeric, and Kashmiri red chili give balanced warmth and vivid color. Dried fenugreek leaves (kasuri methi) add the characteristic makhani aroma.
Cashews: Blended cashews create a naturally creamy texture without relying entirely on dairy cream.
Pureed tomatoes: Canned tomato purée provides consistent acidity and body for a thick, rich sauce.
Butter and cream: These finish the gravy with richness and shine. For a vegan alternative, use vegan butter and full-fat coconut cream.
How to Make Paneer Butter Masala
- Sauté onions in butter until translucent.
- Add garlic and ginger, then cook briefly.
- Add spices and fenugreek leaves and gently toast until fragrant.
- Stir in tomato purée, salt, and cashews; simmer to soften the nuts.
- Add water, cover, and simmer 25–30 minutes, stirring occasionally.
- Cool completely, then blend until smooth and strain for a silky texture.
- Return sauce to the pot, stir in cream, paneer cubes, and sugar; simmer 10 minutes until paneer is tender and the sauce is glossy.
Top 5 Tips for The Perfect Butter Paneer
1. Don’t rush the simmer: Cashews need time to soften for a smooth, non-grainy sauce.
2. Toast spices gently: Keep heat low to avoid bitter, burnt flavors.
3. Always strain the gravy: Straining removes cashew pulp and creates a restaurant-style silkiness.
4. Use fresh, good-quality paneer: Cheap or old paneer can be rubbery; gentle simmering improves texture.
5. Don’t skip fenugreek leaves: Kasuri methi gives the signature makhani aroma you expect from this dish.
FAQ
Use full-fat canned coconut milk or coconut cream in place of dairy cream, vegan butter instead of regular butter, and swap paneer for baked tofu (350°F / 175°C for about 30 minutes) for a satisfying vegan version.
What can I use instead of an immersion blender?
Use a regular blender once the cooked mixture has cooled completely. Blending hot liquid can be dangerous, so always cool first.
What is paneer?
Paneer is a firm, non-melting Indian cheese with a texture between firm cheese and tofu. It’s widely used in Indian curries and holds its shape when simmered.
Butter Paneer Masala (Restaurant Style!)
By Shreya Walia
Creamy, restaurant-style butter paneer made with blended cashews, aromatic spices, buttery tomatoes, and soft paneer. Silky, comforting, and easy to make at home.
Servings: 4 • Prep time: 20 mins • Cook time: 50 mins
Ingredients
- 3 tbsp butter (vegan butter works)
- 1 cup finely chopped onions
- 1 tbsp crushed ginger
- 1 tbsp finely chopped garlic
- 1 tsp garam masala
- 1½ tsp Kashmiri red chili powder
- 1¼ tsp cumin powder
- ¼ tsp turmeric
- 1 tsp dried fenugreek leaves (kasuri methi)
- Salt, to taste
- 1 cup pureed canned tomatoes
- 25 cashews
- ½ cup cream (or coconut cream for vegan)
- 300 g paneer (or baked tofu for vegan)
- 1 tsp sugar
- 1 cup water
Instructions
- Sauté the aromatics: Heat butter and cook onions over medium heat until translucent. Add ginger and garlic and cook another minute.
- Bloom the spices: Add garam masala, Kashmiri chili, cumin, turmeric, and fenugreek. Lower heat and cook until fragrant, careful not to burn.
- Add tomatoes and cashews: Stir in tomato purée, salt, and cashews. Simmer 5–7 minutes to soften the cashews and deepen flavor.
- Simmer with water: Add 1 cup water, bring to a gentle simmer, cover, and cook 25–30 minutes, stirring occasionally.
- Cool and blend: Cool the mixture completely, then blend with an immersion or regular blender. Do not blend hot.
- Strain the sauce: Pass blended sauce through a fine sieve for a silky texture.
- Finish the curry: Return strained sauce to the pot, add cream, paneer cubes, sugar, and adjust consistency with a little water if needed.
- Final simmer: Cook 8–10 minutes until paneer is tender and the gravy is glossy. Garnish with cream and cilantro if desired.
Video
Notes
Storage: Refrigerate for up to 3 days. Reheat gently and add a splash of water or cream to loosen the sauce.
Freezing: Freeze the sauce without paneer for up to 2 months; add fresh paneer when reheating.
Vegan option: Swap paneer for tofu, butter for vegan butter, and cream for coconut cream.
Spice level: Kashmiri chili keeps the dish mild. Add hot chili flakes if you prefer more heat.
Nutrition
Approximate per serving: Calories 496 kcal, Carbohydrates 16 g, Protein 15 g, Fat 43 g (saturated fat 24 g). Use as an estimate only.
Serving Suggestions
Serve butter paneer with warm butter naan, jeera rice, or fluffy basmati rice to soak up the silky gravy. A cooling cucumber raita adds contrast and brightness.
For a complete meal, pair it with vegetable sides such as bhindi masala or paneer manchurian, and finish the meal with a light dessert to balance the richness.