Paneer Butter Masala

Paneer Butter Masala is a rich, creamy and flavorful Indian paneer curry made with soft paneer cubes, tomatoes, onions, aromatic spices, butter and cream. This easy paneer butter masala recipe is perfect for a comforting lunch or dinner and tastes delicious with roti, naan, bread, pulao or jeera rice.

Since the time Lil’M started carrying a lunch box to school, paneer recipes have been my saviour. Paneer Butter Masala has always been a favourite in our home because it is quick to make, mildly spiced and pairs deliciously with roti or rice.

If you enjoy creamy paneer curries, you may also like my Low-Fat Methi Malai Paneer, another comforting paneer gravy that works beautifully with roti, naan or rice.

Over time, I tried and tested this recipe and came up with a simple, creamy and delicious version that works equally well for a family meal or a lunch box.

The best part is that you can easily adjust the recipe depending on how you plan to serve it. For a richer version, use fresh cream. If you are packing it for a lunch box, you can use milk instead.

What is Paneer Butter Masala?

Paneer Butter Masala is a popular North Indian-style paneer curry made with paneer or Indian cottage cheese cooked in a rich, creamy tomato-based gravy.

It is also commonly known as Butter Paneer, Paneer Makhani or Paneer Makhanwala. The combination of butter, tomatoes, aromatic spices and cream gives the curry its characteristic rich and mildly sweet flavour.

Unlike some spicy paneer curries, this recipe has a smooth, creamy gravy that makes it especially popular with both children and adults.

Why You’ll Love This Paneer Butter Masala

• It is easy to make at home.
• The recipe takes about 30 minutes from start to finish.
• The gravy is rich, creamy and flavorful.
• It is perfect for both weeknight dinners and lunch boxes.
• You can make it with cream or milk.
• The recipe can be adjusted to suit your preferred spice level.
• It pairs beautifully with roti, naan and rice.
• You can even use the leftover curry to make a quick paneer roll or wrap with roti or sandwich it up with bread.

Ingredients You Need

For Paneer Butter Masala

• Paneer: Use fresh paneer cut into bite-sized cubes. Homemade paneer also works beautifully.
• Tomatoes: Tomatoes form the base of the gravy and provide the perfect balance of sweetness and tang.
• Onion: Onion adds body and flavour to the curry.
• Cashews: Soaked cashews help give the gravy a naturally creamy and smooth texture.
• Butter: Butter adds the characteristic richness associated with paneer butter masala.
• Oil: A little oil prevents the butter from burning while cooking.
• Ginger-garlic paste: Adds wonderful aroma and flavour.
• Red chilli powder: Adjust according to your preferred spice level.
• Turmeric powder: Adds colour and mild earthy flavour.
• Roasted coriander powder and cumin powder: These spices add depth to the gravy.
• Garam masala: Adds warmth and aroma.
• Kasoori methi: Dried fenugreek leaves are an important finishing ingredient and give the curry a lovely restaurant-style aroma.
• Fresh cream or milk: Use cream for a richer gravy or milk for a lighter, lunchbox-friendly version.
• Fresh coriander leaves: Finish the curry with finely chopped coriander leaves.

How to Make Paneer Butter Masala

1. Prepare the Paneer

Rinse the paneer slab and pat dry with kitchen tissue. Reserve 3–4 cubes for the gravy and cut the remaining paneer into bite-sized cubes. Pat the cubes dry and set aside.

Shallow fry the paneer cubes before adding them to the curry. However, frying is completely optional.

If you prefer soft paneer, skip frying and soak the paneer cubes in lukewarm water for about 10–15 minutes before adding them to the gravy.

2. Prepare the Tomato-Onion Base

Heat oil in a pan and add the bay leaf. Add sliced onion and ginger-garlic paste. Sauté until the onion becomes soft and lightly golden.

Add chopped tomatoes and cook until they turn soft and mushy. Add the soaked cashews and cook for a few more minutes.

Allow this mixture to cool slightly.

3. Blend the Gravy

Remove the bay leaf and transfer the cooked onion-tomato mixture to a blender. Blend until smooth.

For an especially silky paneer butter masala gravy, you can strain the blended mixture before adding it back to the pan.

4. Cook the Masala

Heat butter in the same pan and add the prepared gravy. Add red chilli powder, Kashmiri red chili powder, turmeric powder, roasted coriander powder, roasted cumin powder and garam masala.

Mix well and cook the gravy over medium heat by adding 150ml of water. Cook till the spices are well cooked and the oil or butter begins to appear around the edges.

This step is important because properly cooking the gravy gives the curry a deeper flavour.

5. Add Paneer

Add the paneer cubes and gently mix. Simmer for a few minutes so the paneer absorbs the flavours of the creamy tomato gravy.

Avoid overcooking the paneer, as it can become chewy.

6. Finish with Kasoori Methi and Cream

Crush the kasoori methi between your palms and add it to the curry. Finally, add fresh cream and gently mix.

If you are making this paneer butter masala for a lunch box, you can use room-temperature milk instead of cream.

Simmer briefly and switch off the heat. Garnish with fresh coriander leaves and serve hot.

How to Keep Paneer Soft

Soft paneer makes a huge difference to the final curry.

If you are using store-bought paneer, you can either:

• Soak the paneer cubes in lukewarm water for 10–15 minutes.
• Add the paneer directly to the gravy without frying.
• If frying, lightly fry only until the edges turn pale golden. Do not fry until hard or dark.

Adding the paneer towards the end of cooking also helps retain its soft texture.

Can I Make Paneer Butter Masala Without Cream?

Yes. Cream is not essential.

For an everyday version, you can replace fresh cream with room-temperature milk. This is especially useful when making paneer butter masala for a school or office lunch box.

The cashews in the gravy also contribute to its creamy texture, so the curry will still be rich and smooth without using a large amount of cream.

Can I Skip Frying the Paneer?

Absolutely.

In fact, I often prefer not frying the paneer because it keeps the cubes softer.

Simply soak the paneer cubes in lukewarm water for 10–15 minutes and add them towards the end of cooking.

This is also a convenient option when you want a quick paneer curry with less preparation.

Paneer Butter Masala Variations

There are several easy ways to adapt this recipe depending on what you have in your kitchen.

Use Milk Instead of Cream – For a lighter everyday curry or lunch-box version, replace cream with room-temperature milk.

Use Almonds Instead of Cashews – If you don’t have cashews, soaked almonds can be used instead. You can also try soaked melon seeds for a creamy gravy.

Make It Less Spicy – Reduce the red chilli powder and garam masala. The tomatoes, butter and cream already provide plenty of flavour, so you don’t need a lot of chilli.

Make a Paneer Wrap

Have some leftover paneer butter masala?

Spread the curry over a warm roti, add a few sliced onions or fresh vegetables if you like, roll it tightly and serve as a quick paneer wrap.

It is a great way to turn leftovers into a completely different meal.

You can also use leftover paneer curry to make my Curried Paneer Grilled Sandwiches. It is a delicious way to turn leftover paneer into a quick breakfast, snack or lunch-box option.

What to Serve with Paneer Butter Masala

Paneer Butter Masala is one of those versatile Indian curries that pairs well with both Indian breads and rice.

With Roti and Indian Breads

Serve it with:

• Roti
• Phulka
• Naan
• Butter naan
• Paratha

The soft bread is perfect for scooping up the creamy paneer gravy.

With Rice

For a rice-based meal, try it with:

• Jeera rice
• Pulao
• Pudina pulao
• Coriander rice
• Tomato rice
• Plain basmati rice

For a simple weeknight dinner, paneer butter masala with hot phulkas is one of my favourite combinations.

Frequently Asked Questions

Is Paneer Butter Masala the same as Paneer Makhani?

The names are often used interchangeably, although recipes can vary from one kitchen to another. Both refer to a rich, creamy paneer curry with a buttery tomato-based gravy.

Is Paneer Butter Masala spicy?

This recipe is mildly spiced, but you can easily adjust the amount of red chilli powder and garam masala according to your taste.

Can I use frozen paneer?

Yes. Thaw frozen paneer completely before cooking. Soaking the thawed cubes in lukewarm water for a few minutes can help make them softer.

Can I make Paneer Butter Masala without cashews?

Yes. You can use soaked almonds or melon seeds instead. You can also omit them, although cashews help give the gravy a smooth and creamy texture.

How do I prevent paneer from becoming chewy?

Avoid over-frying and overcooking the paneer. Soaking paneer in lukewarm water before adding it to the curry is another easy way to keep it soft.

What is the best accompaniment for Paneer Butter Masala?

Paneer Butter Masala tastes delicious with naan, roti, phulka, jeera rice, pulao or plain basmati rice.

Can I Make Paneer Butter Masala Ahead of Time?

Yes. The gravy can be prepared ahead of time and refrigerated.

When you are ready to serve, gently reheat the gravy, add the paneer and finish with cream or milk and kasoori methi.

If preparing it for a lunch box, keep the gravy slightly thicker because it may loosen a little as it sits.

More Paneer Recipes to Try

If you love paneer, there are plenty of delicious ways to enjoy it beyond this creamy curry.

For another comforting paneer gravy with fresh greens, try my Methi Palak Paneer. It combines paneer with spinach and fresh methi for a flavorful Indian curry that is perfect with roti or rice.

For an everyday paneer curry, my Paneer Mutter Masala is another delicious choice. Soft paneer and green peas are cooked in a flavorful onion-tomato gravy.

If you are looking for something quick and slightly different, try my Microwave Kadai Paneer. This easy paneer and capsicum curry is perfect for a quick weeknight meal.

And if you enjoy bold, tangy flavours, my Achari Paneer is worth trying. It gets its distinctive pickle-inspired flavour from aromatic spices.

Yield: 4 Servings

Paneer Butter Masala Recipe

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Paneer Butter Masala is a rich, creamy and delicious Indian curry made with soft paneer cubes, tomatoes, cashews, butter and aromatic spices. This easy paneer gravy pairs perfectly with roti, naan, pulao or jeera rice.

Prep Time 10 minutes

Cook Time 20 minutes

Total Time 30 minutes

Ingredients

• 250 gms. Paneer
• 2 medium Tomatoes, chopped
• 1 Onion, sliced
• 1 tbsp. Red chilli powder
• ¼ tbsp. Turmeric powder
• ½ tbsp. roasted Coriander powder
• ¼ tbsp. roasted Cumin powder
• ½ tbsp. Garam Masala
• ½ tbsp. Ginger-Garlic Paste
• ½ tbsp. Kashmiri red chili powder
• 15 Cashews
• 1 Bay leaf
• 2 tbsp. Low fat Butter
• ½ tbsp. Kasoori Methi | Dry Fenugreek leaves
• ½ cup fresh Cream/Milk
• Salt
• 2 tbsp. Oil
• one tbsp. minced Coriander leaves

Instructions

How to make Paneer Butter Masala

1. Rinse the paneer slab under water and cut into cubes. Tap the cubes on kitchen towel or tissue and spread them on a plate.
2. Add little butter and shallow fry the paneer pieces until they turn nice golden on all sides.
3. Remove on to a plate lined with kitchen towel or tissue.
4. In the same pan, add little oil and drop in bay leaf and sliced onions, Fry till onions turn light golden.
5. Now add chopped tomatoes and ginger-garlic paste. Fry till tomatoes turn soft.
6. To this add cashew nuts and fry for a minute and turn off the flame.
7. Cool this mixture, remove bay leaf and grind to form a smooth paste. Add little water, if required.
8. In a heavy bottom vessel add oil and butter (1:1 ratio). To this add above ground onion-tomato-cashew paste.
9. Now add red chili powder, turmeric powder, salt, ginger-garlic paste, Kashmiri red chili powder, roasted coriander powder and roasted cumin powder.
10. Now fry on medium flame until oil starts to leave the sides of the vessel.
11. Add fried paneer cubes and gently stir, until the paneer pieces are nicely coated with the masala.
12. Finally add ¾ cup of water and cook cover until the gravy thickens. Once the gravy is thick (of your desired consistency) add lightlhy crushed kasuri methi and garam masala.
13. Stir gently and drizzle cream or milk. Garnish with fresh minced coriander leaves.
14. Serve warm with roti or naan or bread or jeera rice or ghee rice.
15. Add love to make this make this paneer butter masala taste 'Yummy'.

Notes

Tips for Making the Best Paneer Butter Masala

Use ripe tomatoes: They give the gravy better colour, flavour and natural sweetness.

Soak the cashews: Soaking makes them easier to blend and gives you a smoother gravy.

Don't over-fry the paneer: Over-fried paneer can become rubbery and chewy.

Cook the gravy properly: Give the onion-tomato mixture enough time to cook before blending. Also cook the blended gravy with the spices before adding paneer.

Add cream at the end: Cream is best added towards the end of cooking. Avoid boiling the curry vigorously after adding cream.

Crush the kasoori methi: Rub the dried fenugreek leaves between your palms before adding them. This releases their aroma.

Use room-temperature milk: If replacing cream with milk, bring the milk to room temperature before adding it to the hot gravy.

Nutrition Information:

Yield:

4

Serving Size:

1
Amount Per Serving: Calories: 23299Total Fat: 1866gSaturated Fat: 1001gUnsaturated Fat: 865gCholesterol: 5452mgSodium: 57941mgCarbohydrates: 244gFiber: 3gSugar: 183gProtein: 1409g

The nutritional information provided is approximate and is calculated using online tools. Information can vary depending on various factors, but we have endeavoured to be as accurate as possible.

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