Paneer Butter Masala Recipe with Step-by-Step Photos

Paneer butter masala is a beloved North Indian curry featuring soft paneer cubes simmered in a velvety tomato-cashew gravy enriched with butter and cream. It’s a restaurant-style dish that comes together surprisingly easily at home, and the step-by-step photos below guide you through each stage—from browning the paneer to blooming the spices—so you can nail the silky texture and balanced sweet-tangy flavor every time.

Ingredients

2 tablespoons (30 g) unsalted butter, plus 1 tablespoon (15 g) for finishing
1 tablespoon (15 ml) vegetable oil
1 large onion (about 150 g), finely chopped
2 teaspoons (10 g) ginger-garlic paste (or 1-inch ginger and 4 garlic cloves, minced)
3 large tomatoes (about 450 g), roughly chopped
10 raw cashews (about 20 g)
1 teaspoon (5 g) Kashmiri red chili powder (or ½ teaspoon regular chili powder plus 1 teaspoon paprika)
½ teaspoon (2.5 g) turmeric powder
1 teaspoon (5 g) ground coriander
½ teaspoon (2.5 g) garam masala
1 teaspoon (5 g) sugar (optional, to balance acidity)
Salt to taste (about 1 teaspoon / 5 g)
1 cup (240 ml) water, divided
200 g (7 oz) paneer, cut into 1-inch cubes
¼ cup (60 ml) heavy cream (or full-fat coconut milk for a dairy-free twist)
1 teaspoon (5 ml) dried fenugreek leaves (kasuri methi), crushed
2 tablespoons (30 g) butter for finishing (already listed above)
Fresh cilantro, chopped, for garnish

Instructions

Soften the onion and tomatoes: Heat the 2 tablespoons butter and oil in a heavy-bottomed pan over medium heat. Add the chopped onion and cook, stirring occasionally, until translucent and lightly golden, about 5–6 minutes. Add the ginger-garlic paste and cook for 1 minute until fragrant.
Cook the tomatoes and cashews: Add the chopped tomatoes, cashews, chili powder, turmeric, coriander, and salt. Stir well and cook for 5–7 minutes, until the tomatoes break down and the mixture turns pulpy. Add ½ cup (120 ml) of water, cover, and simmer for 10 minutes, until the tomatoes are completely soft.
Blend the gravy: Let the mixture cool slightly, then transfer it to a blender. Blend until completely smooth. If needed, add a splash of water to help it blend. Pour the puree back into the pan.
Simmer the gravy: Add the remaining ½ cup (120 ml) water to the pan and stir. Bring to a gentle simmer over medium-low heat. Cook for 5 minutes, stirring occasionally, until the gravy thickens slightly and the color deepens.
Brown the paneer: While the gravy simmers, heat a separate non-stick skillet over medium-high heat. Add the paneer cubes and dry-roast them for 2–3 minutes, turning occasionally, until they are lightly golden on the edges. (Alternatively, you can skip browning and add the paneer directly to the gravy; browning adds a slight nutty flavor and helps the cubes hold their shape.)
Finish the dish: Add the browned paneer to the gravy along with the cream, sugar (if using), and crushed fenugreek leaves. Stir gently and simmer for 2–3 minutes, until the paneer is heated through and the gravy is creamy. Do not boil after adding cream, as it may curdle.
Final touch: Turn off the heat and stir in the remaining 1 tablespoon (15 g) butter. Let the curry rest for 5 minutes before serving—this allows the flavors to meld.
Garnish and serve: Sprinkle with fresh cilantro and serve hot with naan, roti, or steamed basmati rice.

Tips

Use full-fat paneer: Low-fat or homemade paneer can turn rubbery when cooked. If using store-bought, soak the cubes in warm water for 10 minutes before browning to keep them soft.
Kashmiri chili powder is key: It gives a vibrant red color without too much heat. If you only have regular chili powder, use half and add a teaspoon of paprika to make up the volume.
Don’t skip the kasuri methi: Dried fenugreek leaves add a distinctive aroma that makes the dish taste restaurant-style. Crush them between your palms before adding to release their oils.
Adjust consistency: If the gravy is too thick after blending, add more water. If it’s too thin, let it simmer uncovered for a few extra minutes to reduce.

Serving Suggestions

Serve paneer butter masala hot with butter naan, garlic naan, or flaky paratha. It also pairs beautifully with jeera rice or plain steamed basmati. For a complete meal, add a side of cucumber raita or a simple green salad. The curry is rich, so a light side balances it well.

Variations

Vegan version: Replace paneer with firm tofu (pressed and cubed) and use coconut cream instead of heavy cream. Use vegan butter or oil for sautéing.
Add vegetables: Stir in 1 cup of green peas or bell pepper strips along with the paneer for extra color and nutrition.
Spicier version: Add 1–2 finely chopped green chilies with the ginger-garlic paste, or increase the chili powder to 1½ teaspoons.
Smoky flavor: After blending the gravy, heat a small piece of charcoal until red-hot, place it in a steel bowl set in the curry, pour a teaspoon of melted butter over it, and cover the pan for 2 minutes to infuse a smoky aroma.

Storage and Reheating

Store leftover paneer butter masala in an airtight container in the refrigerator for up to 3–4 days. The flavors often deepen overnight. Reheat gently on the stovetop over low heat, adding a splash of water or milk to loosen the gravy if it has thickened. You can also microwave in 30-second intervals, stirring in between. Freeze the gravy (without the paneer) for up to 2 months; add fresh paneer when reheating for best texture.

Frequently Asked Questions

Can I use store-bought paneer? Yes, store-bought paneer works well. To keep it soft, soak the cubes in warm water for 10 minutes before browning, then pat dry.

Why is my gravy grainy? Graininess usually happens when the tomatoes are not fully cooked before blending, or the blender isn’t powerful enough. Cook the tomato mixture until it’s very soft, and blend for a full 2–3 minutes until silky smooth.

Can I make it without cashews? Absolutely. Substitute 2 tablespoons of blanched almonds or 2 tablespoons of heavy cream (added at the end) for a similar richness. The flavor will be slightly different but still delicious.

Is paneer butter masala gluten-free? Yes, all the ingredients are naturally gluten-free. Just ensure your garam masala and chili powder are certified gluten-free if you have celiac disease.

How do I prevent the cream from curdling? Always add cream off the heat or over very low heat, and stir gently. Never boil the curry after adding cream. Also, use full-fat cream (at least 30% fat) for best results.

Can I use canned tomatoes? Yes, use 1 can (400 g) of whole peeled tomatoes, drained, in place of fresh. Reduce the added water by half since canned tomatoes are more watery.

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