Mushroom Butter Masala Recipe (Restaurant-Style)

Mushroom butter masala is a rich, creamy North Indian curry where meaty mushrooms are simmered in a velvety tomato-cashew gravy finished with butter and cream. It delivers the indulgent flavor of classic paneer butter masala, but with an earthy, savory depth that makes it a satisfying vegetarian main. This version builds the sauce from scratch for a balanced, restaurant-quality result that works for weeknight dinners and special occasions alike.

Ingredients

2 tbsp (30 g) butter, divided
1 tbsp (15 ml) oil (neutral, like sunflower or canola)
1 lb (450 g) mushrooms (cremini or white button), sliced or quartered
1 medium onion, finely chopped (about 1 cup / 150 g)
2 cloves garlic, minced
1 tbsp (15 g) grated fresh ginger
2 medium tomatoes, chopped (about 1.5 cups / 250 g)
1/4 cup (30 g) raw cashews
1 tsp (5 g) garam masala
1 tsp (5 g) ground cumin
1 tsp (5 g) ground coriander
1/2 tsp (2.5 g) turmeric powder
1/2 tsp (2.5 g) red chili powder (adjust to taste)
1/2 cup (120 ml) heavy cream (or full-fat coconut milk for dairy-free)
1/2 cup (120 ml) water (or as needed)
1 tsp (5 g) sugar (optional, to balance acidity)
Salt to taste
Fresh cilantro, chopped, for garnish

Instructions

Heat 1 tbsp (15 g) of the butter and the oil in a large skillet or Dutch oven over medium-high heat. Add the mushrooms in a single layer (work in batches if needed) and cook without stirring for 3–4 minutes until browned on one side. Stir and cook another 2–3 minutes until all moisture evaporates and mushrooms are golden. Remove from the pan and set aside.
In the same pan, add the remaining 1 tbsp (15 g) butter. Add the chopped onion and sauté over medium heat until soft and translucent, about 4–5 minutes.
Add the garlic and ginger, and cook for 1 minute until fragrant.
Add the chopped tomatoes and cashews. Cook for 5–6 minutes, stirring occasionally, until the tomatoes break down and become mushy.
Turn off the heat. Let the mixture cool slightly, then transfer to a blender. Add 1/2 cup (120 ml) water and blend until completely smooth. Be careful when blending hot liquids: allow steam to escape and blend in batches if needed.
Pour the blended sauce back into the pan. Add the garam masala, cumin, coriander, turmeric, red chili powder, and salt. Stir and bring to a simmer over medium heat. Cook for 5–7 minutes to meld the flavors, adding a splash of water if the sauce gets too thick.
Reduce the heat to low. Stir in the heavy cream and the cooked mushrooms. Add sugar if using. Simmer gently for 5 minutes, without boiling hard, so the cream doesn’t curdle.
Taste and adjust seasoning. Garnish with fresh cilantro. Serve hot.

Tips

Don’t crowd the mushrooms: Searing them in a single layer ensures they brown instead of steam. If your pan is small, cook them in two batches.
Use full-fat cream: Light cream or half-and-half can curdle at higher heat. If you prefer a lighter version, add the cream off the heat and stir gently.
Make it vegan: Swap butter for vegan butter or oil, and use full-fat coconut milk instead of heavy cream. The flavor will be slightly more tropical but still delicious.
Adjust heat: The red chili powder adds moderate spice. For a milder curry, use 1/4 tsp; for more heat, add a finely chopped green chili with the garlic and ginger.

Serving Suggestions

Serve the mushroom butter masala with steamed basmati rice, jeera rice, or warm naan bread. It also pairs well with roti or paratha. A side of cucumber raita or a simple green salad balances the richness. For a complete meal, add a lentil dish like dal tadka.

Variations

Paneer version: Replace mushrooms with 1 lb (450 g) paneer cubes, lightly fried until golden. Skip the mushroom step and add paneer in step 7.
Vegetable butter masala: Use a mix of cauliflower, carrots, and peas. Par-cook the vegetables before adding to the sauce.
Smoky flavor: Add a pinch of smoked paprika or a few drops of liquid smoke to the sauce for a charred, tandoori-like note.
Cashew-free: Replace cashews with 2 tbsp (16 g) blanched almonds or 2 tbsp (16 g) melon seeds. Soak them in hot water for 15 minutes before blending.

Storage and Reheating

Refrigerate leftovers in an airtight container within 2 hours of cooking. The curry will keep for 3–4 days. Reheat gently on the stovetop over medium-low heat, adding a splash of water or cream to loosen the sauce. You can also microwave in 30-second intervals, stirring between each. Avoid boiling the reheated curry, as the cream may split. Freeze for up to 2 months in a freezer-safe container; thaw overnight in the fridge before reheating.

Frequently Asked Questions

Can I use any type of mushroom? Yes. Cremini and white button mushrooms are most common, but shiitake, oyster, or a mix also work. Keep in mind that wild mushrooms have a stronger flavor and may release more water.

Why is my sauce grainy? A grainy texture usually comes from under-blending the tomato-cashew mixture. Blend for a full 2–3 minutes until completely smooth. Also, make sure the tomatoes are fully cooked before blending.

Can I skip the cream? Yes. For a lighter sauce, use 1/2 cup (120 ml) of full-fat yogurt (whisked until smooth) added at the end, but do not boil after adding. Or use coconut milk for a dairy-free option.

How do I make it less spicy? Reduce or omit the red chili powder. You can also add a teaspoon of sugar to balance the heat. Serve with a dollop of plain yogurt or cream to cool the palate.

Can I make this ahead of time? Yes. The sauce (without cream and mushrooms) can be made up to 2 days ahead and refrigerated. When ready to serve, reheat the sauce, add the mushrooms and cream, and simmer for 5 minutes.

What can I use instead of cashews? Sunflower seeds or blanched almonds work well. Soak them in hot water for 15 minutes before blending to achieve a smooth texture.

More recipes to cook

Safety notes: safe minimum internal temperatures from USDA FSIS; raw and undercooked fish guidance from the U.S. FDA. Food safety notes

Spotted an error? Tell us and we will correct it (corrections policy).