Paneer Butter Masala Recipe | Creamy & Restaurant-Style

Learn how to make authentic Paneer Butter Masala at home with creamy tomato-cashew gravy. Easy step-by-step recipe with tips, FAQs, and serving ideas

Topics to Cover in Your Paneer Butter Masala Blog 

1. Introduction

 Brief overview of the dish

 Popularity and relevance in Indian cuisine

2. History of Paneer Butter Masala

 Origins and cultural significance

 Connection to North Indian and Punjabi  cooking

3. Why You’ll Love This Recipe

 Flavor highlights and textural appeal

 Family-friendly, restaurant-style at home

4. Ingredients List

 Detailed ingredients with measurements

 Optional substitutions and notes

5. Utensils & Appliances Required

 Essential tools for cooking and serving

 Optional equipment for better results

6. Step-by-Step Cooking Guide

 Clear, numbered instructions

 Cooking tips at each stage

7. Common Mistakes to Avoid

 Practical advice to improve results

 Troubleshooting gravy, texture, etc.

8. Serving Suggestions

 Best breads and rice pairings

Complementary sides, salads, and drinks.

9. Nutritional Value (Per Serving)

 Calories, protein, fat, and other key info

 Health tips and dietary adjustments.

ntroduction:

Paneer Butter Masala is one of the most beloved dishes in Indian cuisine, celebrated for its rich, creamy texture and mildly spiced tomato-based gravy. This North Indian delicacy features tender cubes of paneer (Indian cottage cheese) simmered in a luscious sauce made with butter, fresh cream, tomatoes, and a medley of aromatic spices. Often served with naan, roti, or steamed basmati rice, Paneer Butter Masala holds a prominent place in both restaurant menus and home kitchens. Its irresistible combination of flavors makes it a favorite among vegetarians and a go-to dish for special occasions and festive meals

History of Paneer Butter Masala:

Paneer Butter Masala, also known as Paneer Makhani, traces its roots to the rich culinary traditions of North India, particularly Punjab. The dish is believed to have evolved as a vegetarian counterpart to the famous Butter Chicken (Murgh Makhani), which was created in the mid-20th century at the iconic Moti Mahal restaurant in Delhi. As vegetarianism is widely practiced in many Indian communities, chefs began substituting chicken with paneer to cater to broader dietary preferences.

The use of butter (makhan), cream, and tomatoes became a hallmark of Punjabi cuisine after the partition of India in 1947, when many Punjabi refugees brought their culinary heritage to cities like Delhi. The recipe soon gained popularity for its indulgent, mildly spiced gravy and versatile appeal, becoming a staple in Indian restaurants across the country and abroad.

Over time, Paneer Butter Masala has undergone regional adaptations, yet it remains a symbol of comfort, hospitality, and celebration in Indian households. Today, it is not only a restaurant favorite but also a cherished homemade dish, especially during festivals, gatherings, and special occasions

Why You’ll Love This Paneer Butter Masala:

Rich and Creamy Texture: The velvety smooth gravy made with butter, cream, and cashews creates a luxurious mouthfeel that’s deeply satisfying.

Perfectly Balanced Flavors: Mildly spiced with a touch of sweetness, this dish strikes the ideal balance between savory richness and subtle heat—making it enjoyable for both kids and adults.

Restaurant-Style at Home: With the right technique, you can replicate that authentic restaurant-style taste in your own kitchen, using fresh and accessible ingredients.

Vegetarian Delight: As a paneer-based dish, it’s a perfect main course for vegetarians and a flavorful alternative to meat-based curries.

Crowd-Pleaser: Whether it’s a weekend family dinner or a festive gathering, this dish never fails to impress and satisfy your guests.

Pairs Well with Many Sides: Serve it with naan, roti, jeera rice, or pulao—Paneer Butter Masala complements a wide range of Indian breads and rice dishes beautifully

Utensils & Appliances Required for Paneer Butter Masala:

To prepare this rich and flavorful dish with ease and efficiency, the following kitchen tools and appliances are recommended:

Heavy-Bottomed Kadhai / Deep Pan

Ensures even heat distribution and prevents the gravy from sticking or burning during slow cooking.

Non-Stick Frying Pan or Tawa

Useful for lightly sautéing or pan-frying the paneer cubes until golden.

Mixer Grinder or Blender

Essential for making a smooth tomato-cashew purée, which forms the base of the gravy.

Fine Mesh Strainer

Helps in straining the blended gravy for a silky-smooth restaurant-style texture.

Ladle & Stirring Spoon

Required for sautéing ingredients and stirring the gravy consistently.

Measuring Cups & Spoons

Ensure accuracy in quantities of spices, cream, and other ingredients.

Knife & Chopping Board

For chopping onions, tomatoes, and fresh herbs like coriander leaves.

Serving Bowl

Use a deep, presentable bowl to serve the dish hot and fresh.

Induction Cooktop or Gas Stove

Any standard heat source suitable for slow and controlled cooking.

Small Bowl

For soaking cashews or keeping spice mixes ready in advance

Common Mistakes to Avoid While Making Paneer Butter Masala:

Using Raw or Unsoaked Cashews:

Blending raw cashews without soaking can result in a grainy texture. Always soak them in warm water for 15–20 minutes before blending to achieve a smooth, creamy gravy.

Overcooking the Paneer:

Paneer becomes rubbery if cooked for too long. Either add it towards the end or just lightly sauté before mixing it into the gravy to keep it soft and tender.

Skipping the Straining Step:

For a restaurant-style silky gravy, strain the blended tomato-cashew paste. Skipping this step may result in a slightly coarse or gritty sauce.

Using Low-Quality Tomatoes:

The base flavor of this dish comes from tomatoes. Avoid overly sour or underripe tomatoes, as they can affect the taste. Choose ripe, red, and juicy tomatoes for the best results.

Overpowering with Spices:

Paneer Butter Masala is known for its subtle, balanced flavor—not excessive heat. Avoid adding too much garam masala or red chili powder, as it can dominate the dish.

Adding Cream Too Early:

Cream should be added towards the end of cooking. Adding it early can cause it to curdle or lose its richness during prolonged heating.

Neglecting Butter and Kasuri Methi:

These two ingredients add the signature flavor. Skipping or reducing them too much will lead to a bland or incomplete taste.

Cooking on High Flame Throughout:

High heat can burn the masala or split the gravy. Maintain a medium to low flame, especially after adding purées or cream.

Not Deglazing the Pan:

After sautéing onions and spices, always deglaze the pan with a splash of water or tomato purée to release the flavors stuck to the bottom.

Forgetting to Rest the Dish:

Letting the curry sit covered for 5–10 minutes before serving helps the flavors blend and intensify beautifully

Ingredients for Paneer Butter Masala
(Serves 3–4 people)

1.  Main Ingredients:

• Paneer (Cottage Cheese) – 250 grams, cut into cubes

• Tomatoes – 3 medium-sized (ripe and red), roughly chopped

• Onion – 1 medium, finely chopped (optional, for a slightly spicier base)

• Cashew Nuts – 10 to 12, soaked in warm water for 15–20 minutes

• Fresh Cream – 3 tablespoons

• Butter (unsalted) – 2 tablespoons

• Oil (neutral) – 1 tablespoon

• Ginger-Garlic Paste – 1 tablespoon

• Green Chili – 1, slit (optional for heat)

2. Spices:

• Red Chili Powder (Kashmiri preferred) – 1 teaspoon (for color and mild heat)

• Turmeric Powder – ¼ teaspoon

• Coriander Powder – 1 teaspoon

• Garam Masala – ½ teaspoon

• Kasuri Methi (Dried Fenugreek Leaves) – 1 teaspoon, crushed

• Salt – to taste

• Sugar – 1 teaspoon (balances acidity of tomatoes

Optional (for enhanced flavor):

• Bay Leaf – 1
• Cinnamon Stick – 1 small piece
• Cardamom Pods (Green) – 2

3. For Garnish:

• Fresh Cream – 1 teaspoon (drizzle on top)

• Coriander Leaves – a few sprigs, chopped

Ingredient Notes:

• Use homemade or fresh paneer for a softer texture

• Replace cream with malai or milk and butter mixture if needed.

• Cashews can be substituted with blanched almonds for a nutty twist.

• For a Jain version, omit onion and garlic, and increase tomato-cashew base slightly

Step-by-Step Cooking Guide for Paneer Butter Masala

Step 1: Prep the Ingredients

• Soak 10–12 cashews in warm water for 15–20 minutes.

• Roughly chop 3 tomatoes, 1 onion (optional), and slit 1 green chili.

• Cube 250g paneer and set aside.

Step 2: Make Tomato-Cashew Purée

• Blend chopped tomatoes and soaked cashews into a smooth paste.

• Optional: Strain the purée for a silky texture.

Step 3: Sauté Aromatics & Whole Spices

• In a heavy-bottomed pan, heat 1 tbsp oil + 1 tbsp butter.

• Add 1 bay leaf, 1 small cinnamon stick, and 2 green cardamoms

• Add 1 medium chopped onion (if using) and sauté until golden.

• Add 1 tbsp ginger-garlic paste and cook until the raw smell goes.

Step 4: Cook the Gravy Base

• Add the tomato-cashew purée and cook on medium heat until the mixture thickens and oil separates.

• Stir occasionally to avoid burning.

Step 5: Add Spices & Simmer

• Mix in 1 tsp red chili powder, 1 tsp coriander powder, ¼ tsp turmeric, and salt to taste.

• Add ½ cup water and let it simmer for 5–6 minutes

Step 6: Add Paneer & Finish the Gravy

• Gently add paneer cubes and stir to coat evenly in the gravy.

• Add 3 tbsp fresh cream and 1 tsp sugar.

• Crush 1 tsp kasuri methi and add for aroma

Step 7: Final Touches

• Sprinkle ½ tsp garam masala.

• Add 1 tsp butter for richness.

• Simmer on low for 2–3 minutes. Turn off the heat.

Step 8: Rest & Serve

• Let it rest, covered, for 5–10 minutes.

• Garnish with fresh cream and chopped coriander leaves.

Approximate Nutritional Value (Per Serving)

(Based on a standard serving of 1 cup – approx. 200–220g)

Nutrient Amount

• Calories..............340–400 kcal
• Protein...............12–14 g
• Carbohydrates..15–18 g
• Dietary Fiber.....2–3 g
• Sugars............... 5–6 g
• Fat......................28–32 g
• Saturated Fat...15–18 g
• Cholesterol.......50–60 mg
• Calcium...........250–300 mg
• Sodium............400–500 mg
• Iron..................1.5–2 mg

Nutritional Highlights:

High in Protein: Due to the paneer, it provides a good vegetarian protein source.

Rich in Calcium: Supports bone health.

High in Saturated Fat: Because of butter and cream; best enjoyed occasionally in moderation.

Low in Fiber: Consider pairing with whole grains or salad to balance the meal.

Note: Values may vary depending on the brand of paneer, butter, cream, and exact portion size used

Serving Suggestions for Paneer Butter Masala

Paneer Butter Masala pairs best with soft, mildly flavored breads and aromatic rice dishes. Here are a few ideal accompaniments:

Indian Breads:

Butter Naan – Soft, leavened, and slightly charred; a classic pairing.

Tandoori Roti – Whole wheat option with a rustic texture.

Lachha Paratha – Flaky and layered, adds richness to every bite.

Kulcha – Especially stuffed kulcha (onion or potato) works well for festive meals.

Rice Options:

Jeera Rice – Simple cumin-flavored basmati rice balances the creamy gravy.

Steamed Basmati Rice – A neutral and fluffy base that absorbs the sauce beautifully.

Pulao (Mild) – Lightly spiced vegetable pulao can elevate the dish for special occasions.

Side Accompaniments:

Fresh Cucumber-Onion Salad – Adds crunch and contrast to the rich curry.

Boondi Raita or Mint Raita – Provides cooling balance to the spices.

Papad or Pickle – For added texture and tang.

Serving Temperature:

Serve hot and fresh, immediately after cooking for the best texture and flavor

Recommended Side Dishes

Chicken Tikka Masala – For a non-vegetarian addition, serve alongside this smoky, spiced chicken curry for a restaurant-style spread.

Momos Pizza – Add a fusion snack or party starter to complement the main meal with a twist.

Fluffy Homemade Pancakes – For a complete brunch or festive breakfast option, end your meal on a sweet note

 Paneer Butter Masala – FAQ with Detailed Answers

1. Restaurant-Style Recipe

Q: How to make restaurant-style paneer butter masala at home?

A: To achieve restaurant-style results at home, use ripe tomatoes, soaked cashew paste, and fresh cream for a rich base. Strain the tomato-cashew purée for a smooth texture. Finish with butter and crushed kasuri methi. Slow-cooking on medium heat enhances flavor depth.

2. PBM vs Shahi Paneer

Q: What is the difference between paneer butter masala and shahi paneer?

A: Paneer Butter Masala uses a tomato-based, mildly spiced gravy with a slight tang. Shahi Paneer is creamier and sweeter, often made with a cashew-onion base and subtle spice levels. Shahi Paneer is more royal in richness, while PBM has a balanced savory profile.

3. Milk vs Cream

Q: Can I use milk instead of cream in paneer butter masala?

A: Yes, you can use full-fat milk as a lighter alternative to cream. However, the gravy may be thinner. To thicken it, simmer longer or add a small amount of milk mixed with cornflour.

4. Soft Paneer Tips

Q: Why does my paneer become rubbery in butter masala?

A: Overcooking paneer or frying it for too long causes it to become rubbery. Always cook paneer on low heat for 2–3 minutes at the end, or simply soak it in warm water before adding to the curry.

5. Best Side Dishes

Q: What are the  side dishes to serve with paneer butter masala?

A: Paneer Butter Masala pairs best with naan, lachha paratha, jeera rice, or steamed basmati rice. You can also serve with a salad, boondi raita, and crispy papad for a complete meal

6. Nutrition Facts

Q: Is paneer butter masala healthy or high in calories?

A: It is high in calories and saturated fat due to paneer, butter, and cream. However, it provides good protein and calcium. To make it lighter, use less butter and replace cream with toned milk or yogurt.

7. Jain Version

Q: Can paneer butter masala be made without onion and garlic?

A: Yes, you can skip onion and garlic. Use a smooth tomato-cashew base, and add ginger paste and kasuri methi for aroma. The taste will still be rich and flavorful.

8. Key Spices

Q: What spices are essential for authentic paneer butter masala?

A: Essential spices include red chili powder (preferably Kashmiri), coriander powder, turmeric, garam masala, and kasuri methi. Whole spices like cinnamon, cardamom, and bay leaf add depth.

9. Storage & Reheating

Q: How to store and reheat leftover paneer butter masala?

A: Store in an airtight container in the refrigerator for up to 2 days. Reheat on low flame, adding a splash of water or milk to prevent thickening or sticking.

10. Tomato Selection

Q: Which type of tomatoes are best for paneer butter masala?

A: Use ripe, red, juicy tomatoes for natural sweetness and color. Avoid sour or underripe ones, as they can alter the taste and balance.

11. Freezing Guide

Q: Can I freeze paneer butter masala for later use?

A: Yes, it freezes well without the cream. Freeze the base gravy separately, and add cream and paneer fresh while reheating. Consume within 30 days for best taste

12. Historical Background

Q: What is the origin and history of paneer butter masala?

A: It originated in North India, likely inspired by Butter Chicken. It was created to offer a vegetarian option using paneer in a rich tomato-butter-cream gravy, and gained popularity across Indian restaurants.

13. Vegan Alternative

Q: How to make vegan paneer butter masala?

A: Use tofu instead of paneer, coconut milk or cashew cream in place of dairy cream, and vegan butter. The result is still rich and creamy, with plant-based ingredients.

14. Store vs Homemade Paneer

Q: Can I use store-bought paneer or should I make it at home?

A: Store-bought paneer is convenient but can be firmer. Homemade paneer is softer and fresher. If using store-bought, soak it in hot water for 10 minutes before cooking.

15. Gravy Issues

Q: Why does the gravy split or curdle while cooking?

A: Adding cream or milk at high heat or too early can cause curdling. Always add cream on low heat and avoid boiling after adding it.

16. Creamy Gravy Tips

Q: How to get a smooth and creamy gravy like restaurants?

A: Blend and strain the tomato-cashew mixture. Cook slowly until the oil separates. Add fresh cream at the end, and don’t skip kasuri methi and butter.

17. Kasuri Methi Use

Q: What is the role of kasuri methi in paneer butter masala?

A: Kasuri methi adds a unique aroma and slight bitterness that balances the creaminess. It gives paneer butter masala its signature restaurant-style flavor.

18. No-Blend Method

Q: Can I cook this dish without a blender or mixer?

A: While a blender gives the best texture, you can finely chop or grate tomatoes and soak+crush cashews by hand. However, the result may be slightly coarse.

19. Shelf Life Info

Q: What is the shelf life of cooked paneer butter masala?

A: It stays fresh for 2 days in the refrigerator. Avoid keeping it at room temperature for long. For longer storage, freeze the gravy base separately.

20. Light Version Tips

Q: How to reduce the richness or fat content in the recipe?

A: Use low-fat milk or curd instead of cream, reduce butter quantity, and sauté in minimal oil. Skip pan-frying paneer to lower fat intake