If you’ve ever enjoyed the rich buttery taste of Paneer Butter Masala in a restaurant and wanted to make it at home, then this guide is all you need. It isn’t just a recipe, but it’s a step by step guide on every tip, ingredient and step that needs to be taken to prepare this aromatic, creamy and North Indian curry.
Table of Contents
ToggleWhat is Paneer Butter Masala?
Paneer Butter Masala or Butter Paneer as it is also known, is an Indian vegetarian dish originating from Punjab. It consists of paneer which is made into a soft and silkily textured gravy having butter, a bit spicy tomato, and cashews. The curry is enriched with mouth watering tomatoes and Kashmiri chili powder which makes the paneer butter masala smooth poured over the dish in an radiant hue. It is loved by most Indians and best served with butter naan, roti or jeera rice.
Why This Recipe Works
This isn’t a shortcut version of a recipe. This is derived from years of using different techniques and ingredients. Here, every step is designed to:
- Retain the natural sweetness of onions.
- Balance out the tang of tomatoes.
- Using cashews and cream creates a luxurious texture.
- Softness of paneer is preserved.
- Aroma delivered meets or exceeds your favorite restaurant.
Table of Contents
- Ingredients list and their substitutes.
- Step-by-step instructions (for stovetop and instant pot).
- Pro tips and techniques.
- Suggested sides for serving.
- How to store and reheat.

Ingredients You’ll Need
Primary Ingredients:
- Paneer – 250 to 300 grams, cubed
- Tomatoes – 3 to 4 medium, ripe and red (about 350g)
- Onion – 1 large (about 120g)
- Cashew Nuts – 12 to 15 whole, raw
- Butter – 1.5 to 2 tablespoons (unsalted preferred)
- Cream – 2 to 3 tablespoons (fresh, cooking or whipping cream)
- Ginger Garlic Paste – 1.5 teaspoons
Spices:
- Kashmiri Red Chili Powder – 1 tsp (for color, not heat)
- Garam Masala – 1 tsp (adjust to taste)
- Coriander Powder – 1 tsp (optional)
- Bay Leaf – 1
- Green Cardamoms – 2
- Cinnamon Stick – 1/2 inch
- Cloves – 3
- Kasuri Methi (Dried Fenugreek Leaves) – 1 tsp, crushed
- Salt – to taste
- Sugar – 3/4 tsp (balances flavor, optional)
Optional:
- Kashmiri chili powder – 1/4 tsp for deeper color
- Water – as required (generally 1 to 1.5 cups)
How to Make Paneer Butter Masala (Stovetop Method)
Step 1: Get the paneer ready (important for store-bought)
If you’re using store-bought paneer, soak the cubes in warm water for ten minutes. This prevents that rubbery texture and keeps them soft.
Make the base gravy in step two.

- In a pan, heat 1 tablespoon of oil.
- Include the chopped onion and two green cardamoms. Sauté until transparent.
- Include salt, cashews, and chopped tomatoes. Cook, covered, until everything is mushy and soft.
- Include sugar, garam masala, ginger garlic paste, red chilli powder, and coriander powder. Sauté for two to three minutes.
- After letting the mixture cool, blend it until it’s smooth with one cup of water. If your blender isn’t strong enough, strain.
Step 2:
- Make the base gravy
Step 3: Let the curry simmer.

- Melt 1.5 tablespoons of butter in a different pan.
- Include the cloves, cinnamon, and bay leaf. Allow them to sizzle.
- Carefully add the pureed gravy, keeping an eye out for any splashes.
- To change the consistency, add water. The butter should separate from the sides after 10 to 12 minutes of simmering

Step 4: Include the cream and paneer.
- Add the paneer cubes and kasuri methi gradually.
- To avoid a rubbery texture, simmer for no more than two to three minutes.
- Add the cream and cook for an additional minute.
- Taste and adjust the garam masala, sugar, or salt.

Instant Pot Method
- Fill the Instant Pot with 1 cup of water and add the onions, tomatoes, cashews, ginger, garlic, and cardamoms.
- Set the pressure cooker to HIGH for six minutes.
- Allow the pressure to naturally subside. Puree everything until it’s smooth.
- Select the sauté mode and add the whole spices and butter.
- Simmer for 8 to 10 minutes after adding the puree and spices back in.
- Include the cream and paneer. Before serving, stir and allow to rest for five minutes.
Pro Tips for Perfect Paneer Butter Masala
- Always fully blend the onion-tomato mixture for a smooth gravy. If necessary, strain.
- To avoid splitting, add cream after turning off the heat rather than boiling it.
- If you must fry paneer, soak it in warm water to keep it soft.
- Using fresh spices is important: For flavour and colour, use premium Kashmiri chilli and garam masala.
- Ripe tomatoes: Steer clear of unripe or sour ones. They have an impact on texture and flavour.
Ingredient Substitutes
- Cashews: For a nut-free option, use soaked, peeled almonds or sunflower seeds.
- Cream: For vegan alternatives, use almond paste or cashew cream.
- Paneer: Replace with boiled eggs, grilled veggies, or tofu.
- Butter: For authenticity, butter is preferred over ghee or oil.
Serving Recommendations
Goes well with: roti, kulcha, steamed basmati rice, jeera rice, and butter naan.
• Sides: green chutney, lemon wedges, and sliced onions
• For the complete North Indian experience, choose a mango lassi or masala chaas as your beverage
Reheating and Storage
• Refrigerate: Keep for up to two days in an airtight container.
• Freezing: Put the paneer and cream-free base gravy in the freezer. When serving, reheat and garnish with paneer and cream.
• Reheating: When reheating, add a little water or milk. Warm up slowly.
Frequently Asked Questions
Is it healthy to eat paneer butter masala?
Cream and butter make it rich and high in calories. Use lighter substitutes or enjoy in moderation.
Is it possible to omit onions?
Yes, but to compensate for the sweetness, add more cashews and balance with extra cream.
Is it possible to substitute milk for cream?
It is not advised. Acidic tomatoes have the ability to split milk. In its place, use cashew cream.
My paneer is rubbery; why is that?
This may result from overcooking paneer or from using subpar store-bought paneer. Always cook paneer for a short time after soaking it in warm water.
What makes Paneer Makhani different from Paneer Butter Masala?
Makhani uses just tomatoes, cream, and cashews to create a sweeter, more buttery flavour without the use of onions. Onions and other spices are used in butter masala.
Final Words
The richness and flavour you find in restaurants are intended to be replicated in this comprehensive Paneer Butter Masala recipe. You won’t want to order takeaway ever again if you follow the instructions exactly. This dish is incredibly satisfying, fragrant, and creamy. It’s a true feast for the senses.
Savour your cooking while filling your kitchen with the aroma of spices and butter!
