Shahi Paneer and Paneer Butter Masala are two of North India’s most beloved paneer curries, but they are far from the same dish. Shahi Paneer is a rich, creamy Mughlai curry built on a base of cashews, cream, and aromatic spices, with a subtly sweet and mildly spiced flavor. Paneer Butter Masala (also called Paneer Makhani) is a tomato-forward curry with butter, cream, and a distinct tanginess, often finished with a smoky flavor. Both are served with naan or rice, but understanding their differences helps you choose the right one for your meal—or make both with confidence.
Ingredients
For Shahi Paneer
- 1 lb (450 g) paneer, cut into 1-inch cubes
- 2 tbsp (30 g) ghee or unsalted butter
- 1 large onion, finely chopped (about 1 cup / 150 g)
- 2 tbsp (30 g) ginger-garlic paste
- 1/2 cup (60 g) raw cashews, soaked in warm water for 15 minutes
- 2 large tomatoes, chopped (about 1.5 cups / 250 g)
- 1/4 cup (60 ml) heavy cream
- 1/4 cup (60 ml) plain yogurt, whisked
- 1 tsp (2 g) garam masala
- 1/2 tsp (1 g) ground cardamom
- 1/4 tsp (0.5 g) ground nutmeg
- 1/2 tsp (2 g) salt, or to taste
- 1/4 cup (60 ml) water, as needed
- 2 tbsp (15 g) slivered almonds and a pinch of saffron for garnish (optional)
For Paneer Butter Masala
- 1 lb (450 g) paneer, cut into 1-inch cubes
- 3 tbsp (45 g) unsalted butter, divided
- 1 large onion, finely chopped (about 1 cup / 150 g)
- 2 tbsp (30 g) ginger-garlic paste
- 3 large tomatoes, chopped (about 2 cups / 350 g)
- 1/2 cup (120 ml) heavy cream
- 1 tsp (5 g) sugar (optional, to balance acidity)
- 1 tsp (2 g) garam masala
- 1 tsp (2 g) red chili powder (adjust to taste)
- 1/2 tsp (1 g) turmeric powder
- 1 tsp (5 g) kasuri methi (dried fenugreek leaves)
- 1/2 tsp (2 g) salt, or to taste
- 1/4 cup (60 ml) water, as needed
- 2 tbsp (30 g) butter for finishing
Instructions
For Shahi Paneer
- Drain the soaked cashews and blend them with 1/4 cup (60 ml) water into a smooth paste. Set aside.
- Heat ghee in a heavy-bottomed pan over medium heat. Add the chopped onion and sauté until golden brown, about 5–6 minutes.
- Add ginger-garlic paste and cook for 1 minute until fragrant.
- Add chopped tomatoes and cook until they turn soft and mushy, about 5–6 minutes. Let the mixture cool slightly.
- Transfer the onion-tomato mixture to a blender and blend into a smooth puree. Return it to the pan.
- Add the cashew paste, garam masala, cardamom, nutmeg, and salt. Stir well and cook over low heat for 3–4 minutes.
- Lower the heat and add the whisked yogurt, stirring continuously to prevent curdling. Cook for 2 minutes.
- Add the heavy cream and 1/4 cup (60 ml) water if the gravy is too thick. Simmer gently for 5 minutes.
- Gently fold in the paneer cubes and cook for another 3–4 minutes. Do not stir vigorously; just swirl the pan to coat the paneer.
- Garnish with slivered almonds and saffron if using. Serve hot.
For Paneer Butter Masala
- Heat 2 tbsp (30 g) butter in a pan over medium heat. Add the chopped onion and sauté until soft and translucent, about 4–5 minutes.
- Add ginger-garlic paste and cook for 1 minute.
- Add chopped tomatoes, turmeric, red chili powder, and salt. Cook until tomatoes break down and oil separates, about 8–10 minutes.
- Cool slightly, then blend the mixture into a smooth puree. Return to the pan.
- Add 1/4 cup (60 ml) water if the puree is too thick, and simmer for 5 minutes.
- Stir in the heavy cream and sugar (if using). Cook on low heat for 3 minutes.
- Crush the kasuri methi between your palms and add to the gravy. Stir in garam masala.
- Add the paneer cubes and the remaining 1 tbsp (15 g) butter. Simmer gently for 5–7 minutes until the paneer absorbs some flavor.
- Finish with a drizzle of cream if desired. Serve hot.
Tips
- Yogurt in Shahi Paneer: Always whisk the yogurt well and add it off the heat, stirring constantly. If it curdles, the gravy will look grainy—fix it by blending the sauce again before adding paneer.
- Kasuri Methi: This is essential for Paneer Butter Masala’s characteristic aroma. If you don’t have it, substitute with 1/2 tsp of dried oregano plus a pinch of sugar, but the flavor will be different.
- Paneer texture: For soft, restaurant-style paneer, soak the cubes in warm water for 10 minutes before adding to the gravy. This prevents them from turning rubbery.
- Make it vegan: Use tofu instead of paneer, coconut cream instead of heavy cream, and vegan butter or oil. The taste will be slightly different but still delicious.
Serving Suggestions
Both curries pair beautifully with butter naan, garlic naan, or jeera rice. Shahi Paneer’s mild sweetness also complements plain steamed basmati rice. For a complete meal, serve with a side of pickled onions or a simple cucumber salad. Paneer Butter Masala is excellent with laccha paratha or rumali roti.
Variations
- Shahi Paneer with nuts: Add 2 tbsp (20 g) of blanched almonds or pistachios along with cashews for extra richness.
- Paneer Butter Masala with smoked flavor: After cooking, place a small piece of hot charcoal in a steel bowl, add a drop of ghee, and cover the pan for 2 minutes to infuse a smoky aroma.
- Add vegetables: Both curries can be stretched with peas, bell peppers, or mushrooms. Add them when you add the paneer.
- Spice level: For a spicier Paneer Butter Masala, add 1 finely chopped green chili with the ginger-garlic paste.
Storage and Reheating
Refrigerate leftovers in an airtight container within 2 hours of cooking. Both curries keep well for up to 4 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. Freeze for up to 2 months in a freezer-safe container; thaw overnight in the refrigerator before reheating. Note that cream-based sauces may separate slightly after freezing—whisk well while reheating.
Frequently Asked Questions
Can I use store-bought paneer? Yes, but for best results, use fresh paneer from a local Indian store or make it at home. Store-bought paneer is often firmer; soak it in warm water for 10 minutes to soften.
Why does my Shahi Paneer taste too sweet? Shahi Paneer is naturally sweet from cashews and cream. If it’s too sweet for you, reduce the cashews to 1/3 cup and add a pinch of black pepper or a teaspoon of lemon juice to balance.
Can I skip the yogurt in Shahi Paneer? Yes, you can omit it, but the gravy will be less tangy and slightly thinner. Increase the cream to 1/3 cup (80 ml) to compensate.
What is the difference between Paneer Butter Masala and Paneer Makhani? They are essentially the same dish; Makhani means “with butter.” Some versions of Makhani include a smoky flavor and a slightly more tomato-forward taste.
Can I make these curries without cream? For a lighter version, replace cream with full-fat coconut milk or a mixture of milk and a teaspoon of cornstarch. The texture will be less rich but still creamy.
How do I prevent the gravy from becoming too thick? Both curries thicken as they cool. If you’re not serving immediately, add a little water or milk when reheating. Always simmer on low heat to avoid burning.
Related
- Lou Berliner Sports Park: Field Guide & Game-Day Recipe
- Is Pretzel Junk Food? Facts & Nutrition
- Is Sauerkraut Cabbage? The Full Answer
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).