Paneer Butter Masala is a creamy, luscious dish with velvety gravy and soft, cubes of fresh paneer. Make this dish at home in under 30 minutes!

PANEER BUTTER MASALA

Paneer Butter Masala or Makhani Paneer in which fresh paneer (Indian cottage cheese) cubes are cooked in a flavorful tomato-onion-cashew gravy. Mildly spiced, velvety, and creamy this paneer butter masala is pure, divine Indian food at its BEST!

Paneer Butter Masala is one of the most popular Indian dishes around the globe. Making this restaurant favorite at home is a breeze. With simple ingredients and under 30 minutes, you have a scrumptious treat to yourself, that’s sinfully tasty and drool-worthy!

I love cooking classic dishes and experimenting a lot. Recreating classic dishes at home, with a minimum of work, is all I look for. This Paneer Butter Masala is one of the classic favorites that I learned from my mom. My mom is an amazing cook. Her recipes are quite simple and nutritious at the same time. This is one of her creations, an easy and luscious recipe cooked in a pressure cooker.

Perfect for the mid-week or holiday, this paneer butter masala, delivers an array of flavors, with creamy, luscious paneer. A nourishing and comforting dish loaded with flavors and protein.

If you love paneer, you should try this Paneer in the Veggie sauce. Versatile, and adaptable, the paneer in the veggie sauce is a delicious Indian curry made with colorful veggies and paneer. Luscious and rich paneer with velvety smooth sauce, soft cubes of paneer, and a ton of flavors make this dish one of the best Paneer dishes.

INGREDIENTS FOR PANEER BUTTER MASALA

FOR THE BUTTER MASALA

1 medium onion, quartered

4 medium tomatoes, quartered

3-4 cloves garlic, crushed

1/2 inch ginger, chopped

1-2 green chili; adjust to taste

1 tablespoon tomato paste (optional)

1 tsp oil

a handful of unsalted whole cashews (about 12-15 cashews)

1 tbsp butter or ghee

1-2 whole green cardamom

2 tsp coriander powder

1/2 tsp red chili powder, adjust to taste

1/4 teaspoon turmeric powder

1/2 cup water

salt to taste

FOR THE PANEER BUTTER MASALA

8 oz paneer, cut into a square shape

1 tsp kasuri methi

2 tablespoon butter or ghee

1/4 tsp Kashmiri chili powder (optional); For color

1 green chili, slit into two 

1/4 tsp garam masala, adjust to taste

1-2 tbsp fresh cream (optional)

1 tsp honey or preferred sweetener (optional)

salt to taste

2 cups warm water

FOR THE GARNISH 

1-2 tsp fresh cream 

Pic Shown: Paneer Butter Masala

DIRECTIONS FOR PANEER BUTTER MASALA

This simple recipe will guide you through making one of the classic Indian dishes Paneer Butter Masala.

Sharing my easy recipe to make Indian favorite paneer butter masala using a stovetop, Instant pot, and stovetop pressure cooker. Use any of the following methods and you will be pleasantly surprised! 

PREP FOR PANEER BUTTER MASALA

Cut the paneer into a square shape. Place the paneer pieces in warm water. Set it aside.

Quarter the veggies – onion, and tomato.

Crush the garlic pods, and chop or grate the ginger.

STOVETOP PANEER BUTTER MASALA

Heat oil in a pan over medium-high heat. Add onions, and crushed garlic and sauté for 1-2 minutes.

Next add tomato, green chili, ginger, and tomato paste (optional). Sauté for 2-3 minutes on high heat, stirring frequently.

Now add coriander powder, red chili powder, salt to taste, cashews, and green cardamom. Sauté for 30 seconds, stirring frequently. Add water and deglaze the pan.

Cover the pan with the lid, reduce the heat, and simmer for 15-20 minutes or until the veggies are soft and cooked.

Turn OFF the heat. Remove the lid, and allow the mixture to cool down.

Using a hand blender, blend the mixture to a fine puree.
(Optional) Strain the puree through a fine mesh strainer for a nice creamy, smooth puree.

Transfer the puree to a bowl. Heat butter or ghee in the pan.

Add slit green chili, and Kashmiri red chili powder (optional). Immediately pour the puree and cover with the lid. Reduce the heat to medium-low and simmer the sauce for 2-3 minutes, stirring occasionally.

Note: Be careful as the sauce may splatter. Use a splatter screen or lid to prevent any splashes.

Drain the paneer from the warm water and add it to the sauce. Simmer the paneer in the sauce for 2-3 minutes or until heated through.

Add garam masala, cream (optional), honey (optional), and crushed Kasuri methi. Give it a good stir. 

Turn OFF the heat. Transfer the paneer butter masala to a serving dish. Garnish with some fresh cream.

INSTANT POT PANEER BUTTER MASALA

Turn ON SAUTE (more). When the screen displays “HOT” and oil. Add onions, and crushed garlic and sauté for 1-2 minutes.

Next add tomato, green chili, ginger, and tomato paste (optional). Sauté for 2-3 minutes on high heat, stirring frequently.

Now add coriander powder, red chili powder, salt to taste, cashews, and green cardamom. Sauté for 30 seconds, stirring frequently. Add water and deglaze the pan.

Cancel SAUTE. Close the lid, and set the pressure valve to sealing. Turn ON PRESSURE COOK (high) for 15 minutes.

Allow 10 minutes of natural pressure release. After 10 minutes, release the pressure manually and open the lid.

Take out the inner pot, and allow the mixture to cool down. 

Using a hand blender, blend the mixture to a fine puree.
(Optional) Strain the puree through a fine mesh strainer for a nice creamy, smooth puree.

Transfer the puree to a bowl. Turn ON SAUTE (more). Heat butter or ghee.

Add slit green chili, and Kashmiri red chili powder (optional). Immediately pour the puree and cover with the lid. Simmer the sauce for 2-3 minutes, stirring occasionally.

Note: Be careful as the sauce may splatter. Use a splatter screen or lid to prevent any splashes.

Drain the paneer from the warm water and add it to the sauce. Simmer the paneer in the sauce for 2-3 minutes or until heated through.

Add garam masala, cream (optional), honey (optional), and crushed Kasuri methi. Give it a good stir. 

Turn OFF SAUTE. Transfer the paneer butter masala to a serving dish. Garnish with some fresh cream.

STOVETOP PRESSURE COOKER PANEER BUTTER MASALA

Follow the directions for Instant Pot cooking. Close the lid, and place the whistle (weights). After the first whistle reduce the heat to low and cook for 15 minutes.

Allow 10 minutes for natural pressure release and release the pressure manually. The rest of the recipe is the same as Instant Pot.

Pic Shown: Paneer Butter Masala

TIPS FOR THE BEST PANEER BUTTER MASALA

Use fresh veggies for the best results. The key ingredient here is tomatoes which make the base of this delicious sauce. Use ripe tomatoes that are slightly sweet and less tart.

Cashews add a nice creamy texture to the sauce without adding any cream. It also helps to thicken the sauce. You can use both cashew paste and cream as per your liking.

Do not hesitate to use some butter in the recipe. After all, it’s paneer butter masala 🙂 Butter is added in a very small quantity but it gives a nice flavor to the dish.

You can use butter or ghee, both work equally well.

Paneer is yet another important ingredient in this dish. I prefer homemade paneer over store-bought. I find homemade paneer, quite soft and perfect for this dish. You can use homemade or good quality store-bought paneer. Follow the instructions on the package before using the paneer.

Indian food is all about spices and flavors. Though this recipe uses spices very sparsely, adjust the spices to suit your taste bud. Kashmiri red chili powder is used mainly for color. You can sub paprika for the same. Red chili powder adds a hint of spiciness and can be sub with cayenne pepper. A small amount of garam masala goes a long way. Do not add too much of it, or it will overpower the flavors of the dish.

TIPS FOR THE BEST PANEER BUTTER MASALA (CONTINUED)

Make sure to deglaze the pan or pot to avoid any burnt food.

Strain the sauce through a fine mesh for a silky, smooth sauce.

Soaking paneer in warm water, softens and brings out the fresh flavor in the paneer. Soak the paneer pieces in warm water for 10-15 minutes. After 15 minutes, remove the pieces and use them in the dish as suggested.

Add paneer and let it simmer for a couple of minutes or until the sauce comes to a gentle boil. This helps the paneer warm through and absorbs all the flavors.

FREQUENTLY ASKED QUESTIONS

WHAT IS BUTTER PANEER

Butter paneer or Makhani paneer is another name for Paneer Butter Masala. It is the same dish with a few different names.

DIFFERENCE BETWEEN PANEER BUTTER MASALA & PANEER TIKKA MASALA

The main difference between the two is how the paneer is cooked. In Paneer butter masala, paneer is added as is in the butter sauce. Whereas, in Paneer Tikka Masala, paneer cubes are first marinated in a yogurt sauce, grilled, and then added to the sauce. It adds a nice charred flavor to the dish.

WHERE TO BUY PANEER

Paneer is available in most Asian or Indian grocery stores. You can make fresh paneer at home.

HOW TO MAKE HOMEMADE PANEER

I have shared a recipe for homemade paneer on my blog. Here’s the link to the recipe – How To Make Paneer

CAN I FRY PANEER

Paneer may be deep-fried or pan-fried before using it in the recipe. Here’s how to pan-fry the paneer:

Heat 1-2 tablespoons of ghee/oil in a pan. Add paneer pieces and fry them on both sides until light brown. Remove it on a paper towel and use it in the dish as suggested.

CAN I USE FROZEN PANEER

If using frozen paneer, thaw the paneer overnight or for a couple of hours, in the refrigerator.

Pic Shown: Paneer Butter Masala

CAN I SKIP ONION

Yes, you can skip the onion in this recipe. I like to add onion to this recipe, I think it gives a nice texture and balances the sour or tart flavor of the tomatoes.

WHERE TO FIND KASURI METHI

Kasuri methi is dried fenugreek leaves. It is easily available in most Asian or Indian grocery stores. You can find Kasuri methi in the spices section.

HOW TO MAKE PANEER BUTTER MASALA VEGAN

For vegan paneer butter masala you can use the following substitute for paneer, butter, and cream:

Use tofu, seitan, or tempeh instead of paneer. Medium Tofu tastes great in this recipe. 

Skip the butter and add your choice of plant-based oil or vegan butter.

Instead of cream, you can use coconut cream or cashew paste for the creamy texture.

Soak 8-10 cashews in warm water for cashew paste for 30 minutes. Grind to a smooth paste. Add this cashew paste at the end.

HOW TO MAKE PANEER BUTTER MASALA NUT-FREE

Skip the cashews and use cream or coconut cream. 

HOW TO SERVE PANEER BUTTER MASALA

I like to serve paneer butter masala with some Indian flatbread such as tandoori roti, paratha, or naan. But this dish goes well with steamed Basmati Rice or brown rice as well.

Pair it with Sindhi Methi Aloo [Fenugreek Potato Curry], Aloo Gobi[Potato Cauliflower Curry], Bharwa Bhindi [stuffed okra], Nav Dhan Dal [9 mix lentils and beans], and Dal Makhani [Madras Lentils] and you have a feast.

HOW TO STORE PANEER BUTTER MASALA

Paneer butter masala stays fresh for 3-4 days in the refrigerator. If planning on storing, do not add paneer or cream. Add the paneer and cream, just before serving.

Paneer butter masala freezes well too. Skip the paneer, and cream if freezing this dish. Freeze the sauce in a freezer-safe container. Freeze paneer in a separate freezer-safe container or Ziploc bag. It stays good for up to 3 months in the freezer. Defrost the sauce and paneer in the refrigerator overnight. Reheat and serve. If desired add some cream before serving.

TRIED THIS RECIPE?

Hope you enjoy this Paneer Butter Masala!! If you give this recipe a try, please rate the recipe by clicking the stars  on the recipe card. Leave a comment and share your experience. Thank you  

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