Naan Paneer Butter Masala: Easy Restaurant-Style Recipe

Updated November 4, 2026

Total time
50 min
prep 20 min · cook 30 min
Serves
4
portions as written

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Naan Paneer Butter Masala: Easy Restaurant-Style Recipe

Naan paneer butter masala is a beloved North Indian dish featuring soft paneer cubes simmered in a rich, velvety tomato-cashew gravy enriched with butter and cream. It is typically served with naan or rice, and this recipe delivers that signature restaurant-style flavor at home using a straightforward method. The combination of aromatic spices, tangy tomatoes, and creamy texture makes it a comforting and satisfying meal that is easier to prepare than you might think.

Ingredients

  • 2 tablespoons (28 g) butter, plus extra for finishing
  • 1 tablespoon (15 ml) oil (vegetable or canola)
  • 1 large onion, finely chopped (about 1 cup / 150 g)
  • 2 teaspoons (10 g) ginger-garlic paste (or 1-inch ginger and 4 cloves garlic, minced)
  • 3 large tomatoes, chopped (about 2 cups / 400 g)
  • 10 cashews (about 15 g)
  • 1 teaspoon (5 g) garam masala
  • 1 teaspoon (5 g) ground cumin
  • 1 teaspoon (5 g) ground coriander
  • 1/2 teaspoon (2.5 g) turmeric powder
  • 1 teaspoon (5 g) red chili powder (adjust to taste)
  • 1 teaspoon (5 g) salt (or to taste)
  • 1/2 cup (120 ml) water
  • 1/2 cup (120 ml) heavy cream
  • 1 tablespoon (15 g) sugar (optional, to balance acidity)
  • 1 pound (450 g) paneer, cut into 1-inch cubes
  • Fresh cilantro, chopped, for garnish

Instructions

  1. Heat the butter and oil in a large skillet or pan over medium heat. Add the chopped onion and sauté until golden brown, about 5–7 minutes.
  2. Add the ginger-garlic paste and cook for another minute until fragrant.
  3. Add the chopped tomatoes and cashews. Cook, stirring occasionally, until the tomatoes are soft and mushy, about 8–10 minutes.
  4. Remove the mixture from heat and let it cool slightly. Transfer to a blender and blend into a smooth puree. (Be careful when blending hot liquids – allow steam to escape.)
  5. Pour the puree back into the pan. Add garam masala, cumin, coriander, turmeric, red chili powder, and salt. Stir well and bring to a gentle simmer.
  6. Add the water and stir. Let the gravy simmer for 5 minutes to meld the flavors.
  7. Reduce heat to low and stir in the heavy cream. Add sugar if using. Simmer for another 2–3 minutes, but do not boil after adding cream to prevent curdling.
  8. Gently fold in the paneer cubes. Cover and let it simmer on low for 5–7 minutes, allowing the paneer to absorb the flavors.
  9. Finish with an extra pat of butter and garnish with fresh cilantro. Serve hot with naan or rice.

Tips

  • Paneer texture: To keep paneer soft, soak the cubes in warm water for 10 minutes before adding to the gravy. This prevents them from becoming rubbery.
  • Substitution: If you don’t have cashews, use 2 tablespoons of heavy cream or 2 tablespoons of blanched almonds (soaked and peeled). This will slightly alter the flavor but still yield a creamy gravy.
  • Adjusting heat: For a milder dish, use 1/2 teaspoon of red chili powder or substitute with paprika. For extra heat, add a slit green chili along with the ginger-garlic paste.
  • Common mistake: Do not boil the gravy after adding cream – it can curdle. Keep the heat low and stir gently.

Serving Suggestions

Serve this paneer butter masala with warm naan, roti, or steamed basmati rice. It also pairs well with jeera rice (cumin rice) or a simple side salad. For a complete meal, add a side of pickled onions or raita (yogurt with cucumber).

Variations

  • Vegan version: Substitute paneer with firm tofu (pressed and cubed) and use coconut cream or cashew cream instead of heavy cream. Use vegan butter or oil.
  • Vegetable version: Add mixed vegetables like peas, carrots, and bell peppers along with the paneer for a more substantial dish.
  • Smoky flavor: For a smoky touch, you can add a pinch of smoked paprika or a drop of liquid smoke (optional).

Storage and Reheating

Store leftovers in an airtight container in the refrigerator for up to 3–4 days. The gravy may thicken upon cooling; add a splash of water or milk when reheating to restore consistency. Reheat gently on the stovetop over low heat, or in the microwave in 30-second intervals, stirring in between. Do not freeze, as the cream-based sauce may separate upon thawing.

Frequently Asked Questions

Can I use store-bought paneer?
Yes, store-bought paneer works well. If it’s dry, soak it in warm water for 10–15 minutes before using to soften.

Why did my gravy turn out grainy?
Graininess usually happens when the tomato-cashew puree is not blended long enough. Blend until completely smooth, and strain if necessary. Also, ensure you simmer the puree well before adding cream.

Can I make this ahead of time?
Yes, you can prepare the gravy up to 2 days ahead and refrigerate. Add the paneer and cream when reheating to serve fresh.

Is paneer butter masala the same as paneer makhani?
They are very similar, but paneer makhani typically uses more butter and cream and has a slightly sweeter, richer flavor. This recipe is a close cousin.

Can I use Greek yogurt instead of cream?
You can, but yogurt may curdle if heated too high. Add it off the heat and stir constantly. Use full-fat yogurt for best results.

How do I make it less spicy?
Reduce the red chili powder and use mild paprika for color. You can also add a tablespoon of tomato paste to balance heat.

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