Paneer Butter Masala: A Creamy Restaurant-Style Recipe

Updated November 5, 2026

Total time
50 min
prep 15 min · cook 35 min
Serves
4
portions as written

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Paneer Butter Masala: A Creamy Restaurant-Style Recipe

Paneer butter masala is a North Indian curry of soft paneer cubes in a smooth, buttery tomato sauce, usually finished with cream and served with naan or rice. Simmering the tomatoes with aromatics and spices before blending gives the sauce body and depth, while adding paneer near the end keeps it tender. The balance of sweetness, heat, and richness varies by cook; this version is gently spiced and easy to adjust.

Ingredients

  • 14 oz (400 g) paneer, cut into ¾-inch (2 cm) cubes
  • 2 tbsp (28 g) unsalted butter
  • 1 tbsp (15 ml) neutral oil
  • 1 medium yellow onion, about 1 cup (150 g), roughly chopped
  • 1 tbsp (15 g) fresh ginger, peeled and chopped
  • 3 garlic cloves, about 1 tbsp (15 g), chopped
  • 1½ lb (680 g) ripe tomatoes, roughly chopped, or one 28 oz (794 g) can whole peeled tomatoes
  • 12 raw cashews, about ⅛ cup (18 g)
  • 1 tsp (2 g) Kashmiri chili powder; use ½ tsp (1 g) cayenne plus ½ tsp (1 g) sweet paprika if unavailable
  • 1 tsp (2 g) ground coriander
  • ½ tsp (1 g) ground cumin
  • ¼ tsp (0.5 g) ground turmeric
  • 1 tsp (5 g) fine salt, plus more to taste
  • ½ tsp (1 g) garam masala
  • 1 tsp (5 g) granulated sugar, optional, depending on tomato acidity
  • ½ cup (120 ml) water, plus more as needed
  • ¼ cup (60 ml) heavy cream, plus 1 tbsp (15 ml) for serving if desired
  • 1 tsp (5 g) dried fenugreek leaves (kasuri methi), optional but traditional; omit if unavailable, though the sauce will lose its lightly sweet, herbal aroma
  • 2 tbsp (8 g) chopped fresh cilantro, for serving

Instructions

  1. Prepare the ingredients. Chop the onion, ginger, garlic, and tomatoes. If using canned tomatoes, include their juices. For especially soft paneer, place the cubes in hot—not boiling—water for 10 minutes, then drain while the sauce cooks. This step is optional; very fresh paneer may be used straight from the package.
  2. Soften the aromatics. Heat the oil and 1 tbsp (14 g) of the butter in a wide saucepan over medium heat. Add the onion and cook for 6–8 minutes, stirring occasionally, until soft and lightly golden but not dark brown. Add the ginger and garlic; cook for 1 minute, stirring so they do not scorch.
  3. Cook the tomato base. Add the tomatoes, cashews, Kashmiri chili powder, coriander, cumin, turmeric, salt, and water. Stir and bring to a gentle simmer. Partially cover and cook for 18–20 minutes, stirring every few minutes, until the tomatoes are very soft and the mixture has thickened. Lower the heat if it bubbles vigorously or begins to catch on the bottom.
  4. Blend until smooth. Take the pan off the heat and let the mixture cool for about 5 minutes. Blend until completely smooth, working in batches if needed and following your blender’s instructions for hot liquids. Do not fill a countertop blender more than halfway; vent the lid and cover it with a folded towel to let steam escape. Return the sauce to the pan. For an especially silky result, pass it through a fine-mesh sieve, though this is optional.
  5. Finish the sauce. Stir in the remaining 1 tbsp (14 g) butter, garam masala, sugar if needed, and cream. Bring the sauce back to a gentle simmer over low heat for 2–3 minutes. Crush the dried fenugreek leaves between your palms and stir them in. Taste and adjust salt, chili, or sugar. If the sauce seems too thick, loosen it with water, 1 tbsp (15 ml) at a time.
  6. Warm the paneer. Fold in the paneer cubes and simmer gently for 3–4 minutes, just until heated through. Avoid a hard boil, which can make paneer rubbery. Spoon into a serving bowl, drizzle with the optional cream, and scatter cilantro over the top.

Tips

  • Choose the right heat. Kashmiri chili powder adds red color with relatively mild heat. Cayenne is hotter, so begin with less and add more to taste; paprika supplies color but little heat.
  • Keep the sauce from turning bitter. Cook the onion until soft and lightly golden, not deeply browned, and stir the garlic and spices often. If the base starts sticking, lower the heat and add a splash of water.
  • Use cream alternatives thoughtfully. Half-and-half can replace heavy cream for a thinner, less rich finish. For a dairy-free sauce, use unsweetened cashew cream and plant-based butter, and replace paneer with firm tofu; the flavor and texture will differ.
  • Adjust the tomatoes before serving. If they taste sharply acidic, add the measured sugar a little at a time. If the curry tastes flat, try a small pinch of salt before adding extra spice.

Serving Suggestions

Serve paneer butter masala hot with basmati rice, jeera rice, naan, roti, or paratha. A simple cucumber salad, sliced onion with lemon, or plain yogurt makes a cool contrast to the creamy sauce. The curry is rich, so a modest portion alongside a vegetable side is often enough for a full meal. Keep breads warm under a clean towel and bring the curry to the table soon after finishing, while the paneer is soft.

Variations

  • Make it milder or hotter: Reduce the chili powder for a gentle curry, or add a pinch of cayenne for more heat. Add gradually; the sauce’s warmth builds as it simmers.
  • Add vegetables: Stir in 1 cup (150 g) cooked peas near the end for paneer matar. Blanched spinach can also be folded in, though it will change the sauce’s color and flavor.
  • Make it without nuts: Leave out the cashews. The sauce will be less creamy, so blend thoroughly and add an extra tablespoon or two of cream if desired. For a nut-free dairy-free version, try unsweetened oat cream, recognizing that it will taste different.
  • Pan-sear the paneer: For browned edges, pat the cubes dry and sear them in a lightly oiled skillet over medium heat, turning to brown several sides. Transfer them to the sauce only for the final 1–2 minutes so they do not toughen.

Storage and Reheating

Refrigerate leftovers within 2 hours of cooking in a covered, shallow container. They keep for 3–4 days in the refrigerator. Reheat gently in a covered saucepan over low heat, stirring occasionally and adding a splash of water if the sauce has thickened. For food safety, reheat leftovers to 165°F (74°C), checking the center with a food thermometer; avoid prolonged boiling, which can make paneer firm. You may also microwave a portion in a covered microwave-safe dish, stirring halfway through and checking it reaches 165°F (74°C). Freeze for up to 2 months for best quality; thaw overnight in the refrigerator and reheat as above. The sauce may separate slightly after freezing, but stirring while reheating can bring it back together.

Frequently Asked Questions

Can I make paneer butter masala ahead?
Yes. Make the tomato sauce up to 3 days ahead and refrigerate it promptly. Reheat it gently, then add the paneer and warm through just before serving. Keeping paneer out of the sauce until the last few minutes helps it stay tender.

Do I have to soak paneer before cooking?
No. Soaking cubes in hot water for 10 minutes can soften some packaged paneer, but fresh, soft paneer usually needs no soaking. Drain soaked cubes well before adding them so they do not water down the curry.

Can I use canned tomatoes?
Yes. Use one 28 oz (794 g) can of whole peeled tomatoes, including the juices. Canned tomatoes can be more acidic than ripe fresh tomatoes, so taste the finished sauce and add the optional sugar only if it needs balancing.

Why is my sauce grainy?
The tomatoes, onions, or cashews may not have cooked until fully soft, or the mixture may not have been blended long enough. Simmer the sauce until the ingredients are tender, blend thoroughly, and strain it through a fine-mesh sieve if you want a smoother texture.

Can I use tofu instead of paneer?
Yes. Use 14 oz (400 g) firm tofu, pressed and cubed. It will be less rich and have a different texture; pan-searing the tofu first helps it hold its shape in the sauce.

Is paneer butter masala very spicy?
This recipe is mildly to moderately spiced, but chili powders vary. Start with the listed amount of Kashmiri chili powder, or use less cayenne if substituting, then adjust the heat after the sauce simmers.

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