Paneer Butter Masala | Paneer Makhani Recipe

Paneer Butter Masala, also known as Paneer Makhani, is one of the most loved curries from India and the Indian subcontinent. This creamy and flavorful dish has found its way into Indian restaurants all over the world, making it a true global favorite. If you have ever visited an Indian restaurant, chances are you have spotted this dish on the menu. The rich flavor and smooth texture make it a must-try curry for anyone who enjoys Indian food.

What is Paneer Butter Masala?

As the name suggests, paneer (Indian cottage cheese) and butter (makhan) are the star ingredients of this dish. Soft paneer cubes are simmered in a velvety tomato-based curry enriched with cream and cashews. This combination creates a perfect balance of tangy, sweet, and mildly spiced flavors.

The spices are subtle, allowing the creaminess of the curry to shine. Cinnamon and green cardamom are the dominant flavors, though you can adjust the spice level to match your taste. Generous use of butter and cream makes the curry truly indulgent and restaurant-style.

Why You’ll Love This Curry

• Rich, creamy, and packed with flavor.
• Pairs well with naan, roti, or steamed basmati rice.
• Loved by kids and adults alike.
• Can be made easily at home with simple ingredients.

Tips for Best Paneer Butter Masala

• Always use fresh paneer. If store-bought paneer feels firm, soak it in warm water for 10 minutes before adding it to the curry.
• Use ripe red tomatoes for a naturally sweet and tangy base.
• Blend the sauce until completely smooth for that restaurant-style silky texture.
• Do not overcook paneer; add it at the end to keep it soft.
• Garnish with a swirl of cream and a few coriander leaves for the perfect finish.

Variations You Can Try

• Restaurant-Style: Add a spoon of honey or sugar to balance the tanginess.
• Dhaba-Style: Use more whole spices and a little extra butter for a robust flavor.
• Healthier Version: Replace cream with milk or cashew paste for a lighter curry.
• Spicy Twist: Increase red chili powder or add green chilies for extra heat.

Try out some more recipes

• Mumbai Style Bread Pakoda
• Banana Cutlets
• Misal Pav
• Katori Chaat

Also visit my YouTube channel Shriyog Kitchen by Yogita for more recipe videos.

Paneer Butter Masala

Slightly sweet and creamy curry of paneer (fresh cheese made from curdled milk) made with mainly tomato, cream and cashew along with spices.

Print Recipe Pin Recipe

Prep Time 5 minutes mins

Cook Time 25 minutes mins

Total Time 30 minutes mins

Servings: 4 people

Course: Main Course

Cuisine: Indian

Ingredients Method Notes

Ingredients

  

• 2 cups Paneer cubes
• 3 tbsp Butter salted or unsalted is fine
• 2 cup Tomato Roughly chopped
• 1/2 cup Onion Roughly chopped
• 1/4 cup Cashew nuts
• 2 pieces Cinnamon
• 3 qty Kashmiri red chilies
• 3 qty Green cardamom
• 1 tbsp Ginger garlic paste
• 1 +1/2 tsp Salt
• 1 tbsp Kashmiri red chili powder
• 1/2 tsp Garam masala
• 1 tbsp Sugar
• 1 tsp Kasuri methi
• 1 tbsp Fresh cream

Method

 

To make gravy

1. Heat 2 tbsp of butter, add roughly chopped onions, cinnamon, kashmiri red chilis, green cardamom, ginger garlic paste, cashew nuts & tomato. Mix all ingredients well.
2. Add a pinch to half tsp of salt. Adding salt helps ingredients like tomato and onion release water and cook quickly.
3. Cover the lid and cook till tomato’s are soft, this will take approximately 5mins
4. Let the mixture cool and then grind it to fine paste, gravy is ready
5. To make paneer butter masala
6. Add remaining 1 tbsp of butter in the pan, add 1 tbsp Kashmiri red chilli powder and 1/2 tsp garam masala to melted butter & fry quickly, do not let it burn
7. Pour the masala paste prepared earlier & add water to maintain creamy consistency
8. Cover and cook until oil is released, this will take approximately 5 minutes
9. If masala paste becomes too thick, add water to adjust consistency
10. Add 1 tsp salt, 1 tbsp sugar & 1 tsp kasuri methi, mix it well
11. Add paneer cubes and mix gently in the gravy
12. Cover and cook for 5 more minutes and then let it simmer for some more time to get desired consistency

For garnishing

1. Garnish with some heavy cream, butter and chopped coriander leaves

Serving instructions

1. Serve hot with naan, roti, paratha or steamed basamati or jeera rice
2. Accompany it with some sliced onion, green chili and pickle

Notes

• Salt : Adjust quantity of salt if you are using salted butter
• Gravy : Make sure to add salt as soon as you add tomato as this will release the water and help tomato get softer fast
• Cream : You can add fresh cream before adding Paneer if you desire more creamy taste
• Paneer : Use soft paneer either store bought or homemade. You can optionally fry the paneer cubes before adding to gravy

DETAILED INSTRUCTIONS WITH PHOTOS

 Heat 2 tbsp of butter, add roughly chopped onions, cinnamon, kashmiri red chilis, green cardamom, ginger garlic paste, cashew nuts & tomato. Mix all ingredients well.

 Add a pinch to half tsp of salt. Adding salt helps ingredients like tomato and onion release water and cook quickly.

 Cover the lid and cook till tomato’s are soft, this will take approximately 5mins

 Let the mixture cool and then grind it to fine paste, gravy is ready

 Add remaining 1 tbsp of butter in the pan, add 1 tbsp Kashmiri red chili powder and 1/2 tsp garam masala to melted butter & fry quickly, do not let it burn

 Pour the masala paste prepared earlier & add water to maintain creamy consistency

 Cover and cook until oil is released, this will take approximately 5 minutes

 If masala paste becomes too thick, add water to adjust consistency

 Add 1 tsp salt, 1 tbsp sugar & 1 tsp kasuri methi, mix it well

 Add paneer cubes and mix gently in the gravy

  Cover and cook for 5 more minutes and then let it simmer for some more time to get desired consistency

 Garnish with some heavy cream, butter and chopped coriander leaves