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    Home >> Recipes >> Entrees

    Paneer Butter Masala - Popular Indian Dish

    Published: Jun 22, 2023 by Jyoti Behrani · This post may contain affiliate links · Leave a Comment

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    Indulge in the creamy goodness of Paneer Butter Masala recipe! This classic Indian dish features tender paneer in a rich tomato-based gravy. Perfect for a comforting and flavorful meal.

    butter paneer masala recipe

    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.

    Jump to:
    • Ingredients
    • Instructions
    • Substitutions
    • Variations
    • Storage
    • Tips
    • FAQ
    • Pairing
    • Paneer Butter Masala Recipe
    • Related

    Ingredients

    Here's a description of the key ingredients used in the Paneer Butter Masala Recipe:

    1. Paneer: Paneer is the star ingredient in Paneer Butter Masala, adding a rich and creamy element to the dish. See more about Paneer.
    2. Tomatoes: Ripe tomatoes are an essential component of the tomato-based gravy in Paneer Butter Masala. They provide a tangy and slightly sweet flavor, along with a vibrant red color. Tomatoes are roughly chopped and cooked down to create a smooth and luscious base for the curry.
    3. Onion: They add a savory and slightly sweet flavor to the dish. Diced onions are sautéed until translucent, providing a depth of flavor to the curry.
    4. Ginger-Garlic: A combination of fresh ginger and garlic is used as a flavor base in many Indian dishes, including Paneer Butter Masala. It adds a pungent and aromatic flavor that enhances the overall taste of the curry.
    5. Butter or Ghee: Butter or ghee (clarified butter) is used to sauté the onions and tomatoes, lending a rich and buttery flavor to the dish. It adds a velvety smoothness and indulgence to the curry.
    6. Spices: Paneer Butter Masala incorporates a variety of spices to create its distinctive flavor profile. Common spices include red chili powder for heat, turmeric for color and earthiness, and garam masala for a warm and aromatic blend of spices.
    7. Cashews: Cashews add creaminess and a subtle nutty flavor. They are soaked and blended into a paste, which contributes to the richness of the curry.
    8. Fresh Cream: Fresh cream is added towards the end of cooking to further enhance the creamy and luxurious texture of Paneer Butter Masala. It adds a velvety richness and helps balance the tanginess of the tomatoes.
    9. Kasuri Methi (Dried Fenugreek Leaves): Kasuri methi is a dried herb with a strong aroma and slightly bitter taste. It is crushed and added to Paneer Butter Masala to provide a unique and distinctive flavor.

    These ingredients come together harmoniously to create the delectable and creamy Paneer Butter Masala, offering a delightful combination of flavors and textures.

    See the recipe card for quantities.

    Instructions

    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 Method

    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 Method

    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.

    Substitutions

    Here are some substitutions you can consider for Paneer Butter Masala:

    1. Paneer Substitutes:
      • Tofu: Firm tofu can be used as a vegan substitute for paneer. It has a similar texture and can absorb the flavors of the curry.
    2. Dairy Substitutes:
      • Vegan Butter or Oil: Instead of using dairy butter or ghee, you can use vegan butter or a neutral oil like vegetable or coconut oil to sauté the onions and tomatoes.
      • Coconut Milk or Cream: To replace dairy cream, you can use coconut milk or coconut cream for a rich and creamy texture. Keep in mind that this will add a coconut flavor to the dish.
    3. Cashews and Cream Substitutes:
      • Almonds: If you prefer not to use cashews, you can substitute them with blanched almonds to add creaminess to the curry. Soak and blend them into a paste before adding it to the dish.
      • Yogurt: Instead of cream, you can stir in a few tablespoons of plain yogurt at the end of cooking to achieve a creamy consistency. This adds a tangy flavor to the dish.
    4. Spice Substitutions:
      • Red Chili Powder: Adjust the heat level by substituting red chili powder with paprika or cayenne pepper according to your preference.
      • Garam Masala: If you don't have garam masala, you can create a substitute by combining ground cumin, coriander, cardamom, cinnamon, and cloves in equal parts.
    5. Tomato Base Substitutions:
      • Tomato Puree: If fresh tomatoes are not available, you can use tomato puree or canned crushed tomatoes as a base for the curry. Adjust the quantity to achieve the desired consistency.

    Variations

    Here are a few variations of Paneer Butter Masala that you can try:

    1. Smoky Paneer Butter Masala: Infuse a smoky flavor into the dish by adding a touch of smoked paprika or using grilled paneer cubes instead of fresh paneer. Grilling the paneer adds depth and a smoky aroma to the curry.
    2. Spicy Paneer Butter Masala: If you prefer a spicier version, increase the amount of red chili powder or add finely chopped green chilies to the curry. Adjust the level of heat according to your taste preferences.
    3. Coconut-Based Paneer Butter Masala: Give the dish a tropical twist by using coconut milk instead of cream. The creamy and slightly sweet flavor of coconut milk complements the spices and creates a unique flavor profile.

    Storage

    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.

    paneer masala

    Tips

    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.

    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.

    butter paneer masala

    FAQ

    What is paneer butter masala made of?

    Paneer Butter Masala is made of soft and fresh paneer (Indian cottage cheese) cooked in a creamy tomato-based gravy infused with aromatic spices and a touch of butter.

    What is the difference between paneer butter masala and 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.

    What cream to add in paneer butter masala?

    In Paneer Butter Masala, you can add fresh cream or heavy cream to achieve a rich and creamy texture. It adds a luxurious and velvety element to the dish.

    Is paneer tikka butter masala same as Shahi paneer?

    No, Paneer Tikka Butter Masala and Shahi Paneer are not the same. Paneer Tikka Butter Masala features grilled paneer pieces in a tomato-based gravy, while Shahi Paneer is a rich and creamy dish with paneer cooked in a cashew and cream-based gravy, often flavored with aromatic spices like saffron and cardamom.

    Pairing

    These are my favorite dishes to serve with Paneer Butter Masala:

    • Potato Cauliflower Curry / Aloo Gobi - Instant Pot, Stove Top
    • Bharwa Bhindi / Stuffed Okra - Stove Top, Air Fryer
    • Aloo Methi [How to make Sindhi Aloo Methi]
    • Dal Makhani - Instant Pot, Pressure Cooker

    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!

    Follow me on Facebook, Pinterest, Instagram and Youtube for easy and delicious recipes. Happy Cooking!  

    butter paneer masala recipe

    Paneer Butter Masala Recipe

    Jyoti Behrani
    Indulge in the creamy goodness of Paneer Butter Masala! This classic Indian dish features tender paneer in a rich tomato-based gravy.
    No ratings yet
    Print Recipe
    Prep Time 10 minutes mins
    Cook Time 20 minutes mins
    Total Time 30 minutes mins
    Course Main Course, Side Dish
    Cuisine Indian, North Indian
    Servings 4
    Calories 318 kcal

    Equipment

    • Instant Pot
    • Mesh Strainers

    Ingredients
     
     

    INGREDIENTS FOR PANEER BUTTER MASALA

      FOR THE BUTTER MASALA

      • 1 medium onion, quartered
      • 4 medium tomatoes, quartered
      • 3-4 cloves garlic, crushed
      • ½ inch ginger, chopped
      • 1-2 green chili; adjust to taste
      • 1 tablespoon tomato paste (optional)
      • 1 teaspoon oil
      • a handful of unsalted whole cashews (about 12-15 cashews)
      • 1 tablespoon butter or ghee
      • 1-2 whole green cardamom
      • 2 teaspoon coriander powder
      • ½ teaspoon red chili powder, adjust to taste
      • ¼ teaspoon turmeric powder
      • ½ cup water
      • salt to taste

      FOR THE PANEER BUTTER MASALA

      • 8 oz paneer, cut into a square shape
      • 1 teaspoon Kasuri methi
      • 2 tablespoon butter or ghee
      • ¼ teaspoon Kashmiri chili powder (optional); For color
      • 1 green chili, slit into two
      • ¼ teaspoon garam masala, adjust to taste
      • 1-2 tablespoon fresh cream (optional)
      • 1 teaspoon honey or preferred sweetener (optional)
      • salt to taste
      • 2 cups warm water

      FOR THE GARNISH

      • 1-2 teaspoon fresh cream

      Instructions
       

      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. 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.

      Notes

      Please refer to the post for the following:
      1. Tips For The Best Paneer Butter Masala
      2. Frequently Asked Questions

      Nutrition

      Nutrition Facts
      Paneer Butter Masala Recipe
      Amount per Serving
      Calories
      318
      % Daily Value*
      Fat
       
      27
      g
      42
      %
      Saturated Fat
       
      16
      g
      100
      %
      Trans Fat
       
      0.01
      g
      Polyunsaturated Fat
       
      1
      g
      Monounsaturated Fat
       
      4
      g
      Cholesterol
       
      66
      mg
      22
      %
      Sodium
       
      138
      mg
      6
      %
      Potassium
       
      268
      mg
      8
      %
      Carbohydrates
       
      12
      g
      4
      %
      Fiber
       
      3
      g
      13
      %
      Sugar
       
      6
      g
      7
      %
      Protein
       
      9
      g
      18
      %
      Vitamin A
       
      652
      IU
      13
      %
      Vitamin C
       
      15
      mg
      18
      %
      Calcium
       
      305
      mg
      31
      %
      Iron
       
      1
      mg
      6
      %
      * Percent Daily Values are based on a 2000 calorie diet.

      Disclaimer

      Nutrition values are my best estimates. If you rely on them for your diet, use your preferred nutrition calculator.

      Tried this recipe?Mention @livingsmartandhealthy or tag #livingsmartandhealthy
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      KEYWORD

      butter paneer, butter paneer masala, butter paneer masala recipe, curry paneer, masala paneer, paneer butter, paneer butter masala, paneer butter masala recipe, paneer curry, paneer masala

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