This paneer butter masala recipe (or paneer makhani) is my take on the Indian classic, featuring soft paneer coated in a creamy tomato-based sauce with a hint of spice. It's warm and cozy without feeling too heavy. A garnish of red onion, cilantro, and lemon juice helps balance the whole dish.
Most recipes for paneer butter masala are developed to mimic the Indian restaurant dish perfectly. This is not one of them. Don't get me wrong, I enjoy the restaurant version, and I'll order takeout when I'm craving that flavor.
But I don't always want a lot of butter and cream; in my variation, there's a bit more boldness in the flavor and tanginess of the tomato. The resulting paneer dish is rich, comforting, slightly punchy from the spice, and perfect with some garlic naan, hot parathas, or chapatis on the side.
Why You'll Love This Recipe
- It's tasty and comforting. With lots of warming spices and a bit of sweetness, the makhani sauce is like a warm hug in a bowl!
- It's easy. This recipe requires fewer steps than other versions, meaning you're one step closer to a delicious dinner!
- It's nourishing without feeling heavy. You still get a creamy sauce, but a lot of the creaminess comes from using cashews and just a pat of butter or two.
For more Indian dishes, try my Punjabi-inspired kadhi pakora, masoor dal tadka, or shrikhand recipe.
Ingredient Notes
Spices: This recipe uses a mix of whole spices and ground spices, most of which can be found in a standard supermarket. Fenugreek leaves, or kasuri methi, provide a maple-syrupy, earthy, nutty flavor to the butter paneer masala.
It’s a defining flavor in the dish. You can find them in an Indian grocery store or online, but you can sub in a pinch of ground fenugreek if you don’t have the leaves. Want to learn more? Check out my guide to essential Indian spices.
Paneer: You can use store-bought or homemade paneer. If using store-bought, you will need to soak it in hot water for 15 - 20 minutes to help soften it.
Aromatics: Ginger-garlic paste is a typical ingredient used in Indian cooking, but I find it's easiest to simply grate the ginger and garlic into a paste with a microplane. If you have the paste, you can use ½ the amount instead!
Cashews: Make sure to use unsalted, raw cashews.
Ripe Tomatoes: It sounds odd, but fresh tomatoes, even in the dead of winter, provide the necessary consistency for this masala, so don't use a canned product! Ripe plum or Roma tomatoes are ideal, because they are less watery than other varieties. Do not use smaller cherry or grape tomatoes.
For a full list of ingredients and quantities, refer to the recipe card.
🍳 Equipment Note 🍳
I recommend using a high-powered blender to ensure the sauce is as creamy and smooth as possible. An immersion blender won't cut it here. If you don’t have one, you can sub the raw cashews for 1 - 2 tablespoons of cashew butter. Add the cashew butter directly to the blender instead of sauteeing it with the aromatics.
Vegan Variation
The recipe can be completely vegan if you sub butter for vegan butter and firm tofu for the paneer. I recommend frying the tofu first, then simmering it in the sauce for the last couple of minutes.
How to Make Paneer Butter Masala
Step 1 - Soak the paneer and cashews in hot water for 15 minutes. Drain and set aside.
Step 2 - Over medium heat, add the oil, bay leaf, cardamom pods, and cinnamon stick until sizzling. Saute the onions until softened and golden brown, and the raw smell dissipates.
Step 3 - Add the garlic, ginger, and green chili and saute for 30 seconds until aromatic. Stir in the drained cashews and tomatoes. Simmer for 8 - 10 minutes until the tomatoes have broken down and released their juices.
Tip: This is a dish where you really want to get some color on these onions. It adds a lot of flavor!
Step 4 - Add the garam masala and water, and simmer for 5 minutes until the sauce thickens slightly.
Step 5 - Discard the whole spices, then transfer the mixture to a stand blender. Remove the center cap of the blender's lid and place a clean dish towel over the opening (this step helps steam escape from the warm tomato sauce). Puree the mixture until completely smooth.
Step 6 - Wipe the skillet clean, then melt a bit of unsalted butter over medium heat. Stir in the red chili powder, add the tomato puree, and simmer for about 5 minutes to meld the flavors. Crush the fenugreek with your hands and stir it into the sauce, along with the heavy cream (if using), and the paneer cubes.
Step 7 - Simmer the paneer for 2 - 3 minutes until softened and cooked through, then top with cilantro, red onion, and a squeeze of lemon juice. Serve immediately, and enjoy!
Expert Tips
- If your sauce feels too watery, you can simmer it for an additional 10 - 15 minutes to help thicken the mixture. Alternatively, if it's too thick, you can add a bit more water to loosen it up.
- Make sure to check your spices before following this recipe. If your spices emit a strong fragrance, they're likely fresh. If they seem older or more stale, you may need to purchase new spices or add more spices to achieve the same flavor. Otherwise, this recipe might not taste as flavorful.
- Prefer a chewier texture? Fry your paneer in oil until golden-brown, then simmer with the sauce just before serving.
Storage Instructions
Leftover paneer butter masala can be stored in the fridge for 2 - 3 days. The sauce tends to thicken after sitting in the refrigerator. Reheat in the microwave until warmed through, adding water as needed to thin out the sauce.
Recipe FAQs
Paneer has a clean, milky, and mild flavor with a soft texture.
Absolutely! You can definitely sub the paneer for chicken.
Paneer butter masala has a mild spiciness, but you can always add more or less chili powder depending on your preference!
There is no difference! In Indian cuisine, there are many different names for the same dish.
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Happy eating! Love, KarishmaNote: This recipe was updated with step-by-step photos and clearer instructions on 1/5/2023.
Paneer Butter Masala
Equipment
- High-powered blender, see notes for detail*
Ingredients
- 8 ounces paneer, store-bought or homemade
- 12 unsalted raw cashews
- 2 tablespoons neutral oil, such as canola
- 2 whole cardamom pods
- ½ cinnamon stick
- 1 bay leaf
- 1 large red onion, thinly sliced
- Salt
- ½ tablespoon grated garlic
- ½ tablespoon grated ginger
- ½ serrano chili, roughly chopped
- 1 pound ripe tomatoes, preferably roma or plum tomatoes | roughly chopped
- 1 teaspoon garam masala
- 1 cup water, plus more if needed
- 2 tablespoons unsalted butter
- ½ teaspoon mild red chili powder, like Kashmiri chili powder | or ¼ teaspoon paprika and ¼ teaspoon cayenne powder
- 1 teaspoon fenugreek leaves, also known as kasoori methi
- 2 tablespoons heavy cream, optional
- 1 teaspoon maple syrup, optional
- A handful of chopped red onion, minced cilantro, and lemon wedges, for serving
Instructions
- Prep the paneer and cashews: Store-bought paneer is often dense, so I recommend softening it through the following step. Cut 8 ounces paneer into 1-inch cubes, then soak in a bowl of hot water for 15 minutes. Drain the paneer and set aside. Meanwhile, soften the cashews. Soak 12 unsalted raw cashews in a small bowl of hot water for 15 minutes. Drain and set aside.8 ounces paneer, 12 unsalted raw cashews
- Bloom the spices: Add 2 tablespoons neutral oil to a medium saute pan set over medium heat. Add 2 whole cardamom pods, ½ cinnamon stick, and 1 bay leaf and saute until aromatic and sizzling, about 30 seconds.2 tablespoons neutral oil, 2 whole cardamom pods, ½ cinnamon stick, 1 bay leaf
- Saute the onion: Saute 1 large red onion over medium heat for 7 - 8 minutes until the moisture has evaporated and the onions are golden brown at the edges. Season with salt.Note: This is a recipe where you really want to get some color on these onions. It adds a lot of flavor.1 large red onion, Salt
- Reduce the heat to low, and add ½ tablespoon grated garlic, ½ tablespoon grated ginger, and ½ serrano chili. Saute for 30 seconds until fragrant.½ tablespoon grated garlic, ½ tablespoon grated ginger, ½ serrano chili
- Saute the tomatoes and cashews: Add 1 pound ripe tomatoes, roughly chopped, and drained cashews, and saute for 8 - 10 minutes over medium heat until the tomatoes begin to break down and release their juices into a thickened sauce.1 pound ripe tomatoes
- Simmer the sauce: Add 1 teaspoon garam masala and 1 cup water, and saute for another 5 minutes until the sauce reduces slightly. Season with salt.1 teaspoon garam masala, 1 cup water
- Blend the sauce: Remove and discard the cardamom, cinnamon, and bay leaves from the sauce. Transfer the sauce to a stand blender. Remove the center cap and place a towel over the opening. Puree mixture until completely smooth. If your puree is not perfectly smooth, you can push it through a fine mesh sieve.Note: Use caution with hot liquids in a stand blender. Initiate the blending process at a low speed, slowly increasing the speed in stages to prevent splashing and to ensure a consistent puree.
- Wipe the saute pan clean, then heat 2 tablespoons unsalted butter over medium heat until melted.2 tablespoons unsalted butter
- Simmer the sauce: Add ½ teaspoon mild red chili powder, and stir to combine, then mix in the tomato puree. Bring the mixture to a simmer. Simmer for about 5 minutes to allow the sauce to meld with the butter. If the sauce is looking too thick, you can add more water as desired.½ teaspoon mild red chili powder
- Finish seasoning: Crush 1 teaspoon fenugreek leaves in your hand and add to the pan. If adding in the cream, reduce the heat to low and stir in 2 tablespoons heavy cream. Season with salt, and taste the sauce, adding more spices if desired. If it needs a bit of sweetness, you can add 1 teaspoon maple syrup.1 teaspoon fenugreek leaves, 2 tablespoons heavy cream, 1 teaspoon maple syrup
- Cook the paneer: Add the paneer and reduce the heat to a low simmer. Simmer for about 2 - 3 minutes, until the paneer is cooked through.
- Serve: Garnish with cilantro and red onion, and serve with lemon wedges.A handful of chopped red onion, minced cilantro, and lemon wedges
Notes
- If your sauce feels too watery, you can simmer it for an additional 10 - 15 minutes to help thicken the mixture. Alternatively, if it's too thick, you can add a bit more water to loosen it up.
- Make sure to check your spices before following this recipe. If your spices emit a strong fragrance, they're likely fresh. If they seem older or more stale, you may need to purchase new spices or add more spices to achieve the same flavor. Otherwise, this recipe might not taste as flavorful.
Nutrition
The nutritional information on this website is only an estimate and is provided for convenience and as a courtesy only. The accuracy of the nutritional information for any recipe on this site is not guaranteed.
Jacob
Really delicious fragrant butter paneer recipe! I had to go on a little mission for the dried fenugreek but it was worth it!
Karishma
So happy you enjoyed! The dried fenugreek can definitely be difficult to find but adds such a unique flavor!
Amanda
A big fan of this recipe. I've made it a few times and have been really happy with the results. I do have a question though: before you blend everything together, do you find and remove the whole spices (cardamon pods, cinnamon, bay leaf), or do you leave it in? Thanks!
Karishma
Hi Amanda,
So happy you're enjoying the recipe! Thanks for that call-out; I just added a note in the recipe to fix this oversight, but yes, you'll want to remove the whole spices before blending.
Best,
Karishma
Priyanka
The instructions were easy to follow and the butter paneer was delicious! Better than what I've had in restaurants. Thanks for a wonderful recipe Karishma!