Paneer Butter Masala Recipe (Video)

Updated November 5, 2026

Total time
50 min
prep 20 min · cook 30 min
Serves
4
portions as written

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Paneer Butter Masala Recipe (Video)

Paneer butter masala is a beloved North Indian curry where soft paneer cubes are simmered in a silky, lightly sweet tomato-cashew gravy enriched with butter and cream. It’s a restaurant-style dish that comes together surprisingly easily at home, and the video walkthrough makes every step clear. The key is building depth by roasting the spices and pureeing the sauce until perfectly smooth.

Ingredients

  • 2 tablespoons (30 g) butter, plus 1 tablespoon for finishing
  • 1 tablespoon (15 ml) oil (neutral oil like sunflower or canola)
  • 2 green cardamom pods, lightly crushed
  • 1 bay leaf
  • 1 cinnamon stick (2-inch / 5 cm)
  • 1 medium onion, finely chopped (about 1 cup / 150 g)
  • 1 tablespoon (15 g) ginger-garlic paste
  • 3 medium tomatoes, chopped (about 2 cups / 350 g)
  • 10 cashew nuts (about 20 g)
  • 1 teaspoon (5 g) red chili powder (adjust to taste)
  • 1/2 teaspoon (2.5 g) turmeric powder
  • 1 teaspoon (5 g) ground coriander
  • 1/2 teaspoon (2.5 g) garam masala
  • 1 teaspoon (5 g) sugar (optional, to balance acidity)
  • Salt to taste
  • 1/2 cup (120 ml) heavy cream
  • 1 cup (240 ml) water, plus more if needed
  • 250 g (about 2 cups) paneer, cut into 1-inch cubes
  • 1 teaspoon dried fenugreek leaves (kasuri methi), crushed
  • 2 tablespoons (30 g) butter, for finishing
  • Fresh cilantro, chopped, for garnish

Instructions

  1. Heat the oil and 2 tablespoons butter in a heavy pan over medium heat. Add the cardamom, bay leaf, and cinnamon; sauté for 30 seconds until fragrant.
  2. Add the chopped onion and cook, stirring often, until soft and lightly golden, about 5–6 minutes.
  3. Add the ginger-garlic paste and cook for 1 minute until raw smell disappears.
  4. Add the chopped tomatoes and cashews. Cook for 6–8 minutes, until tomatoes are mushy and the mixture looks dry.
  5. Add the red chili powder, turmeric, coriander, and salt. Stir for 1 minute.
  6. Add 1/2 cup (120 ml) water, scrape any browned bits from the bottom, and simmer for 5 minutes. Remove from heat and let cool slightly.
  7. Discard the whole spices (cardamom, bay leaf, cinnamon). Transfer the mixture to a blender and blend until completely smooth. Be careful with hot liquids – let it cool enough to blend safely.
  8. Return the puree to the pan. Add the remaining 1/2 cup (120 ml) water and garam masala. Bring to a gentle simmer over medium-low heat.
  9. Add the sugar (if using) and cream, stirring well. Simmer for 5 minutes – do not boil hard or the cream may curdle.
  10. Add the paneer cubes and crushed fenugreek leaves. Stir gently and cook for 3–4 minutes, until the paneer is heated through.
  11. Finish with the remaining 1 tablespoon butter and garnish with cilantro. Serve hot.

Tips

  • Substitute for cashews: Use 2 tablespoons blanched almonds or 1 tablespoon melon seeds. Soak them in warm water for 15 minutes before blending for a smoother texture.
  • Don’t skip the kasuri methi: Dried fenugreek leaves add that signature restaurant aroma. If you don’t have it, skip it – it’s better than substituting with fresh fenugreek, which is bitter.
  • Keep the gravy smooth: Blend the tomato-onion mixture while it’s still slightly warm; a hot liquid in a blender can create pressure – always vent the lid or blend in batches.
  • Paneer texture: If using store-bought paneer, soak the cubes in warm water for 10 minutes before adding to the gravy. This keeps them soft and prevents them from turning rubbery.

Serving Suggestions

Serve the paneer butter masala with hot naan, butter naan, or jeera rice. It also pairs well with plain steamed basmati rice or a side of cucumber raita to balance the richness.

Variations

  • Vegan version: Use firm tofu instead of paneer, coconut cream instead of heavy cream, and vegan butter or oil. The taste will be slightly different but still delicious.
  • Spicier: Add 1–2 chopped green chilies with the ginger-garlic paste, or increase the red chili powder to 1.5 teaspoons.
  • Smoky flavor: After blending, heat a small piece of charcoal on an open flame, place it in a steel bowl in the gravy, pour a teaspoon of ghee over it, and cover for 2 minutes for a smoky dhungar effect.

Storage and Reheating

Store leftover paneer butter masala in an airtight container in the refrigerator for up to 3 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. Do not freeze, as the cream and paneer can separate and become grainy.

Frequently Asked Questions

Can I use store-bought tomato puree? Yes, you can substitute 2 cups of canned tomato puree for fresh tomatoes. Reduce the water slightly, as puree is thinner than fresh tomatoes.

Why does my gravy look orange instead of deep red? The color comes from the tomatoes and red chili powder. Use good-quality Kashmiri red chili powder for a vibrant red color without too much heat.

Can I skip the cream? You can use full-fat yogurt instead, but it may curdle if the gravy is too hot. Add it off the heat and stir continuously. The texture will be slightly less silky.

How do I make it less sweet? Reduce the sugar and use less sweet tomatoes. You can also add a teaspoon of lemon juice at the end to balance the sweetness.

Can I add vegetables? Yes, add 1 cup of green peas or bell peppers along with the paneer. Cook them until tender before adding the paneer.

Is paneer butter masala the same as butter chicken? No, butter chicken uses chicken and a slightly different spice blend, but the base gravy is similar. Paneer butter masala is the vegetarian version.

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