Paneer Butter Masala: A Creamy, Dreamy Indian Delight

Paneer Butter Masala, also known as Paneer Makhani, is a rich and creamy Indian curry that’s a favorite in restaurants and homes alike. This dish features soft cubes of paneer (Indian cottage cheese) simmered in a luscious tomato-based sauce, enriched with butter, cream, and aromatic spices. Originating from North India, this dish is a perfect blend of sweetness, tanginess, and warmth, making it a must-try for anyone who loves Indian cuisine. Whether you’re a vegetarian or simply looking for a comforting meal, Paneer Butter Masala is sure to win your heart.
Why This Paneer Butter Masala Recipe Works
This recipe is a winner because it’s simple, yet delivers restaurant-quality flavors. The combination of fresh tomatoes, aromatic spices, and creamy textures creates a dish that’s both indulgent and satisfying. Plus, it’s customizable—you can adjust the spice level to suit your taste or make it richer by adding more cream or butter.
Another reason this recipe works is its versatility. You can pair it with naan, rice, or even roti, making it a perfect centerpiece for any meal. Whether you’re cooking for a weeknight dinner or a special occasion, this dish is sure to impress.

What’s In Paneer Butter Masala?
The magic of Paneer Butter Masala lies in its simple yet flavorful ingredients. Here’s what you’ll need:
- Paneer: Soft and spongy Indian cottage cheese that absorbs the flavors of the sauce.
- Tomatoes: Fresh tomatoes form the base of the sauce, providing a tangy and sweet flavor.
- Butter and Cream: These add richness and a velvety texture to the curry.
- Spices: A blend of garam masala, turmeric, cumin, and red chili powder creates the signature flavor.
- Aromatics: Onions, garlic, and ginger form the flavor foundation of the dish.
- Cashews: These add a subtle nuttiness and help thicken the sauce.
How To Make Paneer Butter Masala
This Paneer Butter Masala recipe is easy to follow and delivers restaurant-quality results. Here’s how to make it:
Step 1: Prepare the Ingredients
- Soak cashews in warm water for 15-20 minutes to soften them.
- Cut the paneer into cubes and lightly fry them in a pan until golden. Set aside.
Step 2: Make the Tomato-Cashew Base
- Blend soaked cashews with chopped tomatoes, garlic, and ginger into a smooth paste.
- Heat butter in a pan and sauté onions until golden brown.
- Add the tomato-cashew paste and cook for 5-7 minutes until the mixture thickens.
Step 3: Add Spices and Simmer
- Stir in turmeric, red chili powder, garam masala, and salt. Cook for 2-3 minutes.
- Add water to adjust the consistency of the sauce and let it simmer for 5 minutes.
Step 4: Add Paneer and Cream
- Gently add the fried paneer cubes to the sauce and stir to coat them evenly.
- Pour in fresh cream and mix well. Let it simmer for another 2-3 minutes.
Step 5: Garnish and Serve
- Finish with a sprinkle of kasoori methi (dried fenugreek leaves) and chopped cilantro.
- Serve hot with naan, roti, or steamed basmati rice.
Sides for Paneer Butter Masala
Pair your Paneer Butter Masala with these delicious sides:
- Garlic Naan: Soft and fluffy, perfect for scooping up the creamy sauce.
- Jeera Rice: Fragrant cumin rice that complements the rich curry.
- Cucumber Raita: A cooling yogurt-based side to balance the richness.
- Pickled Vegetables: Adds a tangy crunch to the meal.
Recipe FAQ’s
Can I Use Store-Bought Paneer?
Yes, store-bought paneer works perfectly fine. Just make sure to fry it lightly before adding it to the sauce for a better texture.
How Can I Make It Less Spicy?
Reduce the amount of red chili powder or skip it entirely. You can also add a bit of sugar to balance the flavors.
Can I Make It Ahead of Time?
Absolutely! Paneer Butter Masala tastes even better the next day as the flavors develop. Store it in an airtight container in the fridge for up to 3 days.
Other Recipes To Try
- Palak Paneer: A healthy and delicious spinach-based curry with paneer.
- Chana Masala: A spicy and tangy chickpea curry that’s perfect for vegans.
- Malai Kofta: Deep-fried paneer and potato dumplings in a creamy sauce.
- Paneer Tikka Masala: Grilled paneer cubes in a spicy tomato-based sauce.
- Mushroom Masala: A rich and earthy mushroom curry with Indian spices.

Paneer Butter Masala
Ingredients
- 250 g paneer cut into cubes
- 3 medium tomatoes chopped
- 1 large onion finely chopped
- 2-3 garlic cloves minced
- 1- inch ginger minced
- 10-12 cashews soaked
- 2 tbsp butter
- 1 tbsp oil
- 1 tsp turmeric powder
- 1 tsp red chili powder
- 1 tsp garam masala
- 1/2 cup fresh cream
- 1 tsp kasoori methi dried fenugreek leaves
- Salt to taste
- Fresh cilantro chopped (for garnish)
Instructions
- Prepare the Paneer: Lightly fry paneer cubes in a pan until golden. Set aside.
- Make the Tomato-Cashew Paste: Blend soaked cashews, tomatoes, garlic, and ginger into a smooth paste.
- Cook the Base: Heat butter and oil in a pan. Sauté onions until golden. Add the tomato-cashew paste and cook for 5-7 minutes.
- Add Spices: Stir in turmeric, red chili powder, garam masala, and salt. Cook for 2-3 minutes.
- Simmer the Sauce: Add water to adjust consistency and simmer for 5 minutes.
- Add Paneer and Cream: Gently add paneer cubes and pour in fresh cream. Simmer for 2-3 minutes.
- Garnish and Serve: Sprinkle kasoori methi and cilantro. Serve hot with naan or rice.
Notes
- Spice Level: Adjust the red chili powder to suit your taste.
- Make Ahead: The curry tastes even better the next day as the flavors develop.
- Freezing: Freeze in an airtight container for up to 1 month.
- Paneer Substitute: You can use tofu as a substitute for paneer.
- Cream Substitute: Use coconut milk for a dairy-free version.
Nutrition
Enjoy your homemade Paneer Butter Masala! Let us know how it turned out in the comments below!
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