Paneer Butter Masala is a beloved North Indian dish known for its luscious, creamy tomato and cashew-based gravy with aromatic spices. This restaurant-style paneer dish is a global favorite and pairs beautifully with naan, roti, or rice. For rich, comforting Indian flavors, this curry is a must-try for your next vegetarian meal!
If you love Butter Chicken, you're going to love Paneer Butter Masala which is a variation that replaces the chicken with paneer to cater to vegetarians. It originated in North India which is known for its velvety, creamy curries. It's considered one of the best paneer recipes and a staple in Indian restaurants worldwide for its smooth texture, mild sweetness, and well-balanced spice level.
It's not only popular at restaurants, but in Indian homes as well! If we weren't feeling Mattar Paneer that night, my mom would surprise us with this Paneer Butter Masala that has a rich and creamy gravy with soft paneer tossed in.
The simplicity of this curry makes it's an easy 45-minute recipe that's a winner at home for it's delicious flavor!
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Why You'll love this Recipe
- The buttery, mildly spiced tomato sauce is rich and creamy and makes every bite indulgent.
- It achieves natural creaminess from a tiny bit of yogurt, but mostly from cashews. Although, cream is a great restaurant-style garnish for this dish.
- It's a hearty meal with added protein from the paneer, making it perfect for vegetarians.
- Get that authentic Indian restaurant-style taste right in your kitchen in just 45 minutes!
Ingredients - Notes and Substitutions
- Paneer – A no-melt Indian cheese that's firm and mild in flavor. Use fresh homemade paneer or store-bought. It's best to soak store-bought paneer in warm salty water before adding it to the curry.
- Tomatoes - Use ripe, red tomatoes for the best flavor or canned tomato purée for convenience. Sometimes fresh tomatoes in the U.S. aren't the best quality, especially out of season, and it will completely ruin your curry.
- 6 medium-sized roma tomatoes or 2 large tomatoes. You can remove the skin before cooking but it'll be blended and strained at a later point regardless.
- 1 15-ounce can of tomato puree
- Butter – Use unsalted butter. Essential for buttery richness, but substitute with ghee.
- Dahi - Plain whole milk yogurt, like Indian dahi, is the best but you can use low-fat yogurt or Greek yogurt. Be sure to use the thickest parts of the yogurt, avoiding whey.
- Cashews – This is how the curry is naturally creamy without using cream. They also thicken the texture of the curry; substitute with almonds, heavy cream, or omit for a nut-free version.
- Spices – Instead of using garam masala, we use 3 whole spices - green cardamom, cinnamon, and clove. Substitute with ½ teaspoon of garam masala. We also use ground coriander, turmeric, and Kashmiri chili powder which gives the beautiful orangey red color while keeping the spice levels mild; adjust spice levels to taste by adding more or using a green chili. Lastly, 1 whole Kashmiri chili pepper adds mild spice, color, and flavor.
- Kasuri Methi - Or dried fenugreek leaves. It's ultimately optional but people swear it's the game-changing secret ingredient. Crush it between your hands before adding it directly in the curry. Substitute it with additional cilantro.
- Ginger garlic paste - Or as I call it, gigi paste! This is simply a 50/50 mix of ginger and garlic that's blended into a paste. You can easily make ginger garlic paste at home in a mortar and pestle or blender, or purchase it readymade.
How to Make Paneer Butter Masala
- Step 1: Soak the cubed paneer in warm salty water (only if store-bought).
- Step 2: Make a paste with softened butter, dahi, ground coriander, turmeric, and Kashmiri chili powder.
- Step 3: Sauté the whole spices and Kashmiri pepper in oil for a minute, or until fragrant.
- Step 4: Sauté the onions with ginger garlic paste until transparent and lightly browned.
Step 3 is why this dish is called Paneer Butter Masala. It's masalas in butter! Some recipes do this later on after blending the curry, but we find that this makes the recipe simpler, smooth, and more flavorful to do at the beginning.
- Step 5: Add in the spiced yogurt paste and cashews and continue to sauté until the butter separates on the sides.
- Step 6: Pour in the tomato puree with ½ cup of warm water. Cook with the lid on for 15 minutes to make a thick gravy. Add salt to taste.
If your blender is made of glass, be sure to let the curry cool before transferring it to the blender to prevent it from exploding.
- Step 7: Remove the bay leaf and cinnamon stick. Blend the curry until it's silky smooth.
- Step 8: In the same pot, bloom Kashmiri chili powder in 2 tablespoons of butter for 1 minute.
A high-powered blender like a Vitamix will give you the smoothest results. A bad blender or using an immersion blender will result in a grainy curry or it may have tomato skins. In this case, strain the curry through a large mesh strainer back into the pot.
- Step 9: Add the curry back into the pot with ½ cup of warm water and sugar or honey. Adjust the salt to taste.
- Step 10: Add the drained paneer and continue to simmer for 5 minutes. Remove the curry from heat. Rub the kasuri methi between the palms of your hands and add it to the curry.
Just look at how absolutely stunning and silky that curry is! The emulsified butter makes all the difference with a curry that's literally shining.
Serving Suggestions
Garnish the dish before serving with a spoonful of cream and plenty of fresh cilantro for a restaurant-style look.
Serve the Paneer Butter Masala while hot with naan, roti, or Basmati rice. Pair it with a side of cucumber raita, onions, and a lemon wedge for a refreshing contrast. A sabzi such as Aloo Methi is also typically served alongside of a main curry to add wholesome vegetables to the meal.
Expert Tips and Tricks
- For extra richness, add cream or a spoonful of cashew paste.
- Balance out tanginess from the tomatoes with extra salt, a squeeze of lemon juice, or a splash of cream and continue to simmer.
- Sauté the paneer until lightly browned before adding it to the gravy for a firmer texture.
- For a smoother sauce, strain the blended tomato mixture.
- Adjust the consistency by adding warm water to make the curry thinner or make it thicker by continuing to simmer
- Adjust spice levels to your taste by reducing chili powder or adding a pinch of sugar.
Difference between Paneer Makhani, Paneer Butter Masala, and Shahi Paneer
All three dishes—Paneer Butter Masala, Paneer Makhani, and Shahi Paneer—are rich and creamy North Indian paneer curries, but they have distinct differences in ingredients and preparation.
| Dish | Base | Spice Level | Texture | Key Difference |
|---|---|---|---|---|
| Paneer Butter Masala | Tomato, butter, cashews | Mild-medium | Smooth & rich | Balanced spice & creaminess |
| Paneer Makhani | Tomato, butter, cream, | Mild | Buttery, light | Mild, minimal spices |
| Shahi Paneer | Cashew / almond paste, cream, saffron | Mild | Thick, nutty | Royal, nutty, and fragrant |
Storage Instructions
- Refrigerate: Store in a glass airtight container for up to 3 days.
- Freeze: The curry base (without paneer) can be frozen in silicone freezer trays for up to 2 months.
- Reheat: Warm on the stovetop over low heat, adding a splash of water or cream to restore consistency.
- Hosting: Save time for hosting by making the curry the night before or reheating the frozen base. The next day, toss in the paneer and simmer for 10 minutes before adding the kasuri methi and cilantro for garnish.
- Leftovers: Add leftover curry as a topping on a Naan Pizza!
Frequently Asked Questions
Unfortunately, this recipe does not convert into butter chicken. The chicken is marinated in spices that add to the flavor of the curry, which also has more spices and cream. You can use this Butter Chicken recipe.
Absolutely, extra firm tofu works for this recipe. To make it vegan, you can also substitute the butter for vegan butter.
If you're allergic to cashews, almonds are a good substitute. Soak them in hot water for 30 minutes and remove the skin.
For no nuts at all, sunflower seeds soaked in warm water work as well.
More Indian Main Dishes to try
Recipe
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Paneer Butter Masala
Equipment
- Blender (or immersion blender)
Ingredients
- 15 ounces paneer, cubed
- 3 tablespoons unsalted butter, divided
- 2 tablespoon dahi
- ½ teaspoon ground turmeric
- 1 teaspoon ground coriander
- 2 teaspoons kashmiri chili powder, divided
- 2 teaspoon neutral oil
- 1 bay leaf
- 1 small cinnamon stick
- 1 dried whole kashmiri chili, deseeded* (optional)
- 1 clove
- 2 green cardamom pods, smashed
- 1 medium-sized red onion, chopped
- 1 tablespoon ginger garlic paste
- 15 unsalted cashews
- 15 ounces tomato puree, canned or fresh
- 1 cup warm water, divided
- 1 teaspoon sugar or honey
- ½ teaspoon kasuri methi
- cilantro, to garnish
- salt, to taste
Instructions
- Soak the cubed paneer in a large bowl with warm salty water (only if store-bought). In a small bowl, mix together the dahi, 1 tablespoon butter, 1 teaspoon kashmiri chili powder, 1 teaspoon ground coriander, and ¼ teaspoon ground turmeric into a paste.
- In a heavy bottom pot or kadhai, add 2 teaspoons of neutral oil on medium heat. Once warm, toast the bay leaf, cinnamon stick, deseeded kashmiri chili pepper, and green cardamom for a minute.
- Add the onion and sauté for 5 minutes until transparent and lightly browned. Add the ginger garlic paste and cashews and sauté for another minute. Then, pour in the spiced yogurt paste and stir everything together really well. Continue to sauté for 3 minutes, or until the butter separates on the sides.
- Pour the tomato puree in along with ½ cup of warm water. Stir everything together. Cover the pot and simmer for 15 minutes, stirring in intervals.
- After simmering, carefully remove the bay leaf and cinnamon stick from the curry. Add salt to taste. Transfer the curry to a blender and blend until smooth.
- Melt 2 tablespoons of butter in the pot. Once it's bubbling, add 1 teaspoon kashmiri chili powder and sautè for one minute. Strain the curry through a large mesh strainer back into the pot with ½ cup of warm water.
- Stir in a teaspoon of sugar or honey. Adjust the salt to taste. Drain the paneer and add it to the gravy. Continue to simmer the curry for another 5 minutes.
- Remove from heat. Rub the kasuri methi between the palm of your hands and garnish with cilantro. Serve warm.
Notes
- If your blender is made of glass, be sure to let the curry cool before transferring it to the blender to prevent it from exploding.
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