Paneer Butter Masala

Bowl of butter paneer topped with cilantro and red onions with naan in the background.

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5 from 4 votes

This creamy cashew-based butter paneer masala recipe is a delicious take on the restaurant classic.

Prep Time20

Cook Time45

Total Time1 5

Servings: servings

Calories: 372kcal

Author: Karishma Pradhan

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.

Video

Notes

* A high powered blender is recommended to ensure the sauce is as creamy and smooth as possible. If you don’t have one, I recommend subbing the raw cashews for 1 - 2 tablespoons cashew butter. Add the cashew butter directly to the blender instead of sauteeing it with the aromatics.

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.

Storage: 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.

Nutrition