Paneer Butter Masala Recipe: Rich & Creamy

Updated November 4, 2026

Total time
55 min
prep 20 min · cook 35 min
Serves
4
portions as written

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Paneer Butter Masala Recipe: Rich & Creamy

Paneer butter masala is a beloved North Indian curry where soft paneer cubes are simmered in a velvety tomato-cashew gravy enriched with butter and cream. The sauce gets its deep, sweet-tangy flavor from slow-cooked tomatoes and aromatic spices, while the cream and butter give it a luxurious, mild richness that pairs perfectly with naan or rice. This version balances restaurant-style indulgence with home-kitchen practicality, using easily found ingredients and a straightforward method that delivers consistent results.

Ingredients

  • 2 tablespoons (30 g) butter, plus 1 tablespoon (15 g) for finishing
  • 1 tablespoon (15 ml) oil (vegetable or sunflower)
  • 2 medium onions, finely chopped (about 1.5 cups / 200 g)
  • 4 cloves garlic, minced
  • 1 tablespoon (12 g) grated fresh ginger
  • 1 green chili, slit (optional, adjust to taste)
  • 4 large tomatoes, roughly chopped (about 3 cups / 600 g)
  • 12 raw cashews (about 20 g)
  • 1 teaspoon (5 g) ground cumin
  • 1 teaspoon (5 g) ground coriander
  • 1/2 teaspoon (2.5 g) turmeric powder
  • 1 teaspoon (5 g) Kashmiri red chili powder (or 1/2 tsp regular chili powder)
  • 1/2 teaspoon (2.5 g) garam masala
  • 1 teaspoon (6 g) salt, or to taste
  • 1 teaspoon (5 g) sugar (optional, to balance acidity)
  • 1/2 cup (120 ml) heavy cream
  • 1/2 cup (120 ml) water
  • 14 oz (400 g) paneer, cut into 1-inch cubes
  • 1 tablespoon (15 g) dried fenugreek leaves (kasuri methi), crushed
  • 2 tablespoons (30 g) butter, for finishing
  • Fresh cilantro, chopped, for garnish

Instructions

  1. Soften the paneer: Place the paneer cubes in a bowl and cover with warm water. Let soak for 10 minutes. This keeps the paneer soft and prevents it from drying out during cooking. Drain just before adding.
  2. Cook the base: Heat the 2 tablespoons butter and oil in a large heavy-bottomed pan or Dutch oven over medium heat. Add the chopped onions and cook, stirring occasionally, until golden brown, about 6–8 minutes.
  3. Aromatics: Add the garlic, ginger, and green chili. Sauté for 1 minute until fragrant.
  4. Tomatoes and cashews: Add the chopped tomatoes and cashews. Cook, stirring, until the tomatoes soften and release their juices, about 5–6 minutes. The mixture should look pulpy.
  5. Spices: Add cumin, coriander, turmeric, red chili powder, and salt. Stir well and cook for 2 minutes to bloom the spices.
  6. Simmer: Add 1/2 cup water, stir, and bring to a gentle simmer. Cover and cook for 10 minutes, stirring occasionally, until the tomatoes are completely broken down and the mixture is thick.
  7. Cool and blend: Remove from heat and let the mixture cool slightly (about 5 minutes). Transfer to a blender and blend until completely smooth. Be careful when blending hot liquids—vent the lid and use a towel to hold it down.
  8. Return to pan: Pour the pureed sauce back into the same pan. Place over medium-low heat. Add the sugar (if using) and stir. The sauce should be thick but pourable; if it seems too thick, add a few tablespoons of water.
  9. Add paneer and cream: Gently stir in the drained paneer cubes and the heavy cream. Simmer on low heat for 5–7 minutes, stirring gently, until the paneer is heated through and the sauce has thickened slightly. Do not boil vigorously, or the cream may curdle.
  10. Finish: Turn off the heat. Stir in the crushed fenugreek leaves and the remaining 1 tablespoon butter. The butter adds shine and richness. Taste and adjust salt.
  11. Rest and serve: Let the curry sit for 5 minutes before serving—this allows the flavors to meld. Garnish with fresh cilantro.

Tips

  • Use full-fat paneer: Low-fat paneer turns rubbery when heated. If you only have low-fat, soak it in warm water for 15 minutes and handle gently.
  • Kashmiri chili powder: It gives a vibrant red color without too much heat. If you use regular chili powder, reduce to 1/2 teaspoon.
  • Don’t skip the fenugreek: Kasuri methi is the signature flavor of this dish. If unavailable, substitute 1/2 teaspoon of dried oregano (not the same, but adds a similar herbal note).
  • Blend thoroughly: A smooth sauce is key. If you prefer a rustic texture, blend less, but the classic version is silky.
  • Make it vegan: Use vegan butter and replace cream with full-fat coconut milk or cashew cream. The flavor will change slightly.

Serving Suggestions

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

Variations

  • Add vegetables: Stir in 1 cup of green peas or 1/2 cup of roasted bell peppers along with the paneer for extra texture.
  • Spicier version: Add 1 teaspoon of finely chopped green chilies or a pinch of cayenne with the spices.
  • Use tofu: Replace paneer with extra-firm tofu, pressed and cubed. Sauté the tofu in oil until golden before adding to the sauce.
  • Smoky flavor: After blending, add 1/2 teaspoon of smoked paprika or a drop of liquid smoke to mimic the traditional charcoal smoke (dhungar).

Storage and Reheating

Refrigerate leftovers in an airtight container for up to 4 days. The sauce will thicken as it sits; add a splash of water or milk when reheating to restore consistency. Reheat gently on the stovetop over low heat, stirring often, until heated through (about 5–7 minutes). You can also microwave in 30-second increments, stirring between. Do not freeze, as the cream and paneer may separate and become grainy upon thawing.

Frequently Asked Questions

Can I use store-bought tomato puree instead of fresh tomatoes? Yes, use 2 cups (480 ml) of plain tomato puree. Skip the simmering step for tomatoes, but still cook the onions and spices. Add the cashews with the puree and proceed. The flavor will be slightly less fresh but still good.

Why is my sauce bitter? Bitterness usually comes from burnt garlic or spices. Cook garlic only until fragrant, not brown. Also, if you use regular chili powder, it can be more bitter than Kashmiri. Ensure you don’t overcook the spices.

How do I make it less creamy without losing richness? Replace half of the heavy cream with 1/4 cup of yogurt (whisked until smooth) and 1/4 cup of milk. Add at the end and do not boil. The sauce will be lighter but still rich.

Can I prepare this ahead of time? Yes, make the sauce (steps 2–7) up to 2 days ahead and refrigerate. When ready to serve, reheat the sauce, then add the paneer and cream as directed. This actually deepens the flavor.

What if I don’t have cashews? Use 2 tablespoons of blanched almonds or 1 tablespoon of melon seeds (magaz). Soak them with the tomatoes. Alternatively, add 2 tablespoons of heavy cream extra and skip the nuts, but the sauce will be thinner.

Is paneer butter masala the same as butter chicken? No. Butter chicken uses chicken in a similar spiced tomato-butter sauce, but the spice blend and cooking technique differ. Paneer butter masala is vegetarian and typically has a milder, more delicate flavor.

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