Paneer butter masala is a beloved North Indian curry featuring soft paneer cubes simmered in a velvety, mildly spiced tomato-cashew gravy enriched with butter and cream. It’s a restaurant favorite that works surprisingly well at home because the sauce comes together in one pot, and the slow simmering of the base develops a deep, sweet-tangy flavor that pairs perfectly with naan or rice. This version balances richness with a gentle heat, making it a crowd-pleaser for weeknight dinners and special occasions alike.
Ingredients
- 2 tablespoons (28 g) butter, divided
- 1 tablespoon (15 ml) oil (neutral, like sunflower or canola)
- 2 green cardamom pods, lightly crushed
- 1 bay leaf
- 1 medium onion (about 150 g), finely chopped
- 1 tablespoon (15 g) ginger-garlic paste (or 1 inch ginger + 4 garlic cloves, minced)
- 3 medium tomatoes (about 400 g), chopped
- 15 raw cashews (about 20 g)
- 1 teaspoon (5 g) sugar (optional, to balance acidity)
- 1 teaspoon (5 g) Kashmiri red chili powder (or ½ tsp regular chili powder for less heat)
- ½ teaspoon (2.5 g) ground turmeric
- 1 teaspoon (5 g) ground coriander
- ½ teaspoon (2.5 g) garam masala
- Salt to taste (about 1 teaspoon / 5 g)
- ½ cup (120 ml) water, plus more if needed
- 250 g paneer, cut into 1-inch (2.5 cm) cubes
- ¼ cup (60 ml) heavy cream (or full-fat coconut milk for a dairy-free option)
- 1 tablespoon (15 g) butter, extra for finishing (optional)
- 1 tablespoon (15 g) kasuri methi (dried fenugreek leaves), crushed
- Fresh cilantro, chopped, for garnish
Instructions
- Prep the base: In a large skillet or pan, heat 1 tablespoon (14 g) of butter and the oil over medium heat. Add the cardamom pods and bay leaf, and sauté for 30 seconds until fragrant.
- Cook the aromatics: Add the chopped onion and cook, stirring occasionally, until soft and lightly golden, about 5–6 minutes. Add the ginger-garlic paste and cook for another 1 minute until raw smell disappears.
- Add tomatoes and cashews: Stir in the chopped tomatoes and cashews. Cook for 5–7 minutes, until the tomatoes are mushy and the mixture looks slightly dry.
- Spice it up: Add the chili powder, turmeric, coriander, and garam masala. Stir well and cook for 1 minute to toast the spices.
- Simmer the gravy: Pour in ½ cup (120 ml) water and add salt. Bring to a gentle boil, then reduce heat to low, cover, and simmer for 10 minutes. This softens the cashews and melds the flavors.
- Blend the sauce: Remove the pan from heat and let the mixture cool slightly (about 5 minutes). Discard the bay leaf and cardamom pods. Transfer the mixture to a blender and blend until completely smooth. If too thick, add 2–3 tablespoons of water to help blend. (Be careful when blending hot liquids—let steam escape.)
- Finish the sauce: Return the blended sauce to the pan over low heat. Add the remaining 1 tablespoon (14 g) of butter and the cream. Stir gently to combine. If the sauce is too thick, add a few tablespoons of water to reach your desired consistency (it should coat the back of a spoon).
- Add paneer: Gently fold in the paneer cubes. Simmer on low for 5–7 minutes, allowing the paneer to warm through and absorb the sauce. Do not boil vigorously, or the cream may curdle.
- Season and serve: Stir in the crushed kasuri methi and the extra butter (if using). Taste and adjust salt. Garnish with fresh cilantro and serve hot.
Tips
- Use full-fat paneer: Low-fat or homemade paneer can become rubbery when simmered. If using store-bought, soak the cubes in warm water for 10 minutes before adding to keep them soft.
- Don’t skip the cashews: They add a natural creaminess and body to the gravy. If you’re allergic, substitute with 2 tablespoons of blanched almonds or 1 tablespoon of sunflower seed butter, though the flavor will change slightly.
- Balance the acidity: Tomatoes can be very tangy. If your gravy tastes too sharp, add the sugar (or a teaspoon of honey) in step 5. Adjust to your preference.
- Make it ahead: The gravy (without paneer and cream) can be made 2 days ahead and refrigerated. Add paneer and cream when reheating.
Serving Suggestions
Serve this paneer butter masala with warm naan, roti, or jeera rice. It also pairs well with a side of cucumber salad or pickled onions to cut through the richness. A sprinkle of extra kasuri methi on top adds a restaurant-style finish.
Variations
- Vegan: Use tofu (pressed and cubed) instead of paneer, and replace butter with vegan butter or oil. Use coconut cream or cashew cream in place of heavy cream.
- Spicier: Add 1–2 finely chopped green chilies with the ginger-garlic paste, or increase the chili powder to 1½ teaspoons.
- Smoky flavor: For a smoky undertone, you can add a pinch of smoked paprika or a drop of liquid smoke (optional).
- Nut-free: Omit the cashews and add 2 tablespoons of plain yogurt (or coconut yogurt for vegan) at the end, but whisk it in off the heat to avoid curdling.
Storage and Reheating
Store leftovers in an airtight container in the refrigerator for up to 4 days. The flavors deepen overnight. To reheat, warm gently on the stovetop over low heat, adding a splash of water or milk to loosen the sauce. You can also microwave in 30-second intervals, stirring in between, but avoid overheating as the cream may split. Freeze the gravy (without paneer) for up to 2 months; thaw overnight in the fridge, then reheat and add fresh paneer.
Frequently Asked Questions
Can I use store-bought ginger-garlic paste? Yes, but fresh is more aromatic. Use 1 tablespoon of the paste, which is typically a 1:1 mix, and adjust salt accordingly as some brands contain salt.
Why is my gravy grainy? This usually happens if the cashews aren’t blended long enough or the tomatoes weren’t fully cooked. Blend for a full 2 minutes, and if needed, strain the sauce through a fine-mesh sieve for an ultra-smooth texture.
Can I make it without cream? Absolutely. Substitute with ¼ cup (60 ml) of full-fat coconut milk or 2 tablespoons of cashew cream. The flavor will be slightly different but still delicious.
How do I keep paneer from becoming chewy? Don’t overcook it. Add the paneer at the end and simmer only until heated through—about 5 minutes. Also, using fresh, soft paneer makes a big difference.
Is this dish very spicy? No, it’s mild and creamy. The Kashmiri chili powder adds color more than heat. If you’re sensitive, reduce it to ½ teaspoon.
Can I use canned tomatoes? Yes, use 1½ cups (375 g) of canned crushed tomatoes. Reduce the water to ¼ cup (60 ml) and simmer 5 minutes less, as canned tomatoes are already soft.
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