Paneer Butter Masala Ingredients & Easy Recipe

Paneer Butter Masala is a beloved North Indian curry where soft paneer cubes are simmered in a velvety, mildly spiced tomato-cashew gravy enriched with butter and cream. It’s a restaurant favorite that’s surprisingly simple to make at home, and the key to its luxurious texture lies in using the right ingredients and a few easy techniques. This recipe walks you through every component, from the paneer to the final garnish, so you can create a rich, balanced dish that rivals any takeout.

Ingredients

1 lb (450 g) paneer, cut into 1-inch cubes
2 tbsp (30 g) butter, plus 1 tbsp for finishing
1 tbsp (15 ml) oil (vegetable or ghee)
1 large onion (about 150 g), finely chopped
2 garlic cloves, minced
1 tbsp (15 g) grated fresh ginger
2 green cardamom pods, lightly crushed
1 cinnamon stick (2-inch / 5 cm)
2-3 cloves
1 bay leaf
1 tsp (5 g) cumin seeds
3 large tomatoes (about 450 g), chopped
1/4 cup (30 g) raw cashews, soaked in warm water for 15 minutes
1 tsp (5 g) Kashmiri red chili powder (or 1/2 tsp regular chili powder)
1/2 tsp (2 g) turmeric powder
1 tsp (5 g) ground coriander
1/2 tsp (2 g) garam masala
1 tsp (5 g) salt, or to taste
1 tbsp (15 g) sugar (optional, to balance acidity)
1/2 cup (120 ml) heavy cream (or full-fat coconut milk for a dairy-free option)
1/4 cup (60 ml) water (as needed for blending)
1 tbsp (15 g) dried fenugreek leaves (kasuri methi), crushed
Fresh cilantro leaves, for garnish

Instructions

If using store-bought paneer, soak the cubes in warm water for 10 minutes to soften them. Drain and set aside.
Heat the oil and 2 tbsp butter in a large skillet or Dutch oven over medium heat. Add the cardamom, cinnamon, cloves, bay leaf, and cumin seeds. Sauté for 30 seconds until fragrant.
Add the chopped onion and cook, stirring occasionally, until golden brown, about 6-8 minutes. Add the garlic and ginger and cook for another minute.
Add the chopped tomatoes and soaked cashews (drained). Cook for 5-6 minutes, until the tomatoes are soft and mushy.
Remove the whole spices (cardamom, cinnamon, cloves, bay leaf) if you prefer a smooth sauce, or leave them for a rustic texture. Let the mixture cool slightly.
Transfer the mixture to a blender. Add 1/4 cup (60 ml) water and blend until completely smooth. If needed, add a little more water to achieve a pourable consistency. Set aside.
Wipe the skillet clean. Add the remaining 1 tbsp butter and melt over medium heat. Add the chili powder, turmeric, coriander, and garam masala. Stir for 10 seconds (do not burn).
Pour the blended tomato-cashew mixture back into the skillet. Add salt and sugar (if using). Bring to a gentle simmer and cook for 5-7 minutes, stirring occasionally, until the gravy thickens slightly and the oil begins to separate from the sides.
Reduce heat to low. Stir in the heavy cream and crushed fenugreek leaves. Simmer for 2-3 minutes, but do not boil after adding cream (it may curdle).
Gently fold in the paneer cubes. Cover and let simmer on low for 5 minutes, allowing the paneer to absorb the flavors without breaking apart.
Garnish with fresh cilantro and serve hot.

Tips

Don’t skip soaking the paneer: Soaking in warm water makes the paneer soft and prevents it from turning rubbery during cooking.
Balance the tang: Tomatoes vary in acidity. If your gravy tastes too sharp, add a pinch of sugar or a splash of cream to mellow it.
Use Kashmiri chili powder: It gives a vibrant red color without excessive heat. Regular chili powder is hotter; use half the amount.
For a vegan version: Substitute paneer with firm tofu (pressed and cubed) and use coconut cream instead of heavy cream. The flavor will be slightly different but still delicious.

Serving Suggestions

Serve this paneer butter masala with hot naan, roti, or jeera rice. It also pairs well with a simple side salad or pickled onions to cut through the richness. For a complete Indian meal, add dal makhani and a cooling raita.

Variations

Add vegetables: Stir in 1 cup of green peas or bell pepper strips along with the paneer for extra texture and color.
Make it smoky: For a smoky flavor, place a small piece of charcoal in a bowl, light it, and place it inside the skillet with the gravy. Cover for 2 minutes, then remove the charcoal. This is optional and requires care.
Spicy version: Add 1-2 finely chopped green chilies with the ginger-garlic, or increase the chili powder to 1.5 tsp.

Storage and Reheating

Store leftover paneer butter masala in an airtight container in the refrigerator for up to 3 days. Reheat gently on the stovetop over low heat, adding a splash of water or cream if the gravy has thickened. You can also microwave in 30-second intervals, stirring in between. Avoid boiling, as the cream may separate. Freeze for up to 2 months in a freezer-safe container; thaw overnight in the fridge before reheating.

Frequently Asked Questions

Can I use store-bought tomato puree instead of fresh tomatoes? Yes, use 1.5 cups (360 ml) of plain tomato puree. Skip the step of cooking fresh tomatoes, but still simmer the puree for 5 minutes to reduce excess water.

Why is my gravy grainy? This usually happens if the cashews aren’t soaked long enough or the blend isn’t smooth. Soak cashews for at least 15 minutes and blend for a full 2-3 minutes until silky.

Can I make this without cashews? Yes, substitute 2 tbsp of blanched almonds or 1/4 cup of heavy cream (added later) for the cashews. The texture will be slightly less creamy but still good.

Is paneer butter masala the same as butter chicken? No, butter chicken uses chicken, but the sauce is similar. This recipe is the vegetarian version, using paneer instead.

How do I prevent the cream from curdling? Always add cream to a simmering (not boiling) gravy, and stir constantly. Also, use full-fat cream with at least 30% fat for best results.

Can I use Greek yogurt instead of cream? Yes, but whisk the yogurt with a little water first and add it off the heat to prevent curdling. The sauce will be tangier and lighter.

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