Paneer Butter Masala with Basmati Rice Recipe

Updated November 5, 2026

Total time
1 hr
prep 20 min · cook 40 min
Serves
4
portions as written

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Paneer Butter Masala with Basmati Rice Recipe

Paneer butter masala is a beloved North Indian curry where soft paneer cubes are simmered in a velvety, lightly sweet tomato-cashew gravy enriched with butter and cream. It pairs perfectly with fragrant basmati rice, making a comforting and restaurant-worthy meal at home. This recipe builds deep flavor by roasting the spices and pureeing the sauce, giving you a rich, balanced dish that’s easier than you think.

Ingredients

  • 1 cup (200 g) basmati rice
  • 1¾ cups (415 ml) water for rice
  • 1 lb (450 g) paneer, cut into 1-inch cubes
  • 2 tablespoons (30 g) butter, plus 1 tablespoon for finishing
  • 1 tablespoon (15 ml) oil (neutral, like sunflower)
  • 1 large onion (about 150 g), finely chopped
  • 2 cloves garlic, minced
  • 1 tablespoon (15 g) grated fresh ginger
  • 3 medium tomatoes (about 400 g), roughly chopped
  • ¼ cup (35 g) raw cashews
  • 1 teaspoon (5 g) garam masala
  • 1 teaspoon (5 g) ground cumin
  • 1 teaspoon (5 g) ground coriander
  • ½ teaspoon (2.5 g) turmeric
  • 1 teaspoon (5 g) Kashmiri red chili powder (or ½ tsp cayenne)
  • 1 teaspoon (5 g) salt, adjust to taste
  • 1 cup (240 ml) heavy cream
  • 2 tablespoons (30 g) tomato paste (optional, for color)
  • 1 teaspoon (5 ml) lemon juice
  • Fresh cilantro, chopped, for garnish

Instructions

  1. Cook the rice: Rinse the basmati rice under cold water until the water runs clear. Soak in cold water for 20 minutes, then drain. In a medium pot, bring 1¾ cups (415 ml) water to a boil. Add the rice and a pinch of salt. Reduce heat to low, cover, and cook for 15 minutes. Remove from heat and let stand, covered, for 5 minutes. Fluff with a fork.
  2. Soak the cashews: While the rice soaks, place the cashews in a small bowl and cover with hot water. Let them soak for 15 minutes.
  3. Prepare the base: In a large skillet or Dutch oven, heat the oil and 2 tablespoons (30 g) butter over medium heat. Add the chopped onion and cook, stirring often, until golden brown, about 8–10 minutes. Add the garlic and ginger, and cook for 1 minute until fragrant.
  4. Cook the tomatoes: Add the chopped tomatoes, tomato paste (if using), turmeric, cumin, coriander, chili powder, and salt. Cook, stirring occasionally, until the tomatoes are soft and the mixture is thick, about 10 minutes. Remove from heat and let cool slightly.
  5. Blend the sauce: Transfer the tomato-onion mixture to a blender. Drain the soaked cashews and add them. Blend until completely smooth, adding a splash of water if needed to get a puree. Be careful with hot liquids—vent the blender lid.
  6. Simmer the gravy: Return the puree to the skillet. Place over medium heat and add ½ cup (120 ml) water. Bring to a gentle simmer, then reduce heat to low. Cook for 10 minutes, stirring occasionally, so the flavors meld.
  7. Add paneer and cream: Gently fold in the paneer cubes and the heavy cream. Simmer for another 5 minutes, until the paneer is heated through. Do not boil vigorously, or the cream may curdle.
  8. Finish: Stir in the garam masala and lemon juice. Taste and adjust salt. Turn off the heat and swirl in the remaining 1 tablespoon (15 g) butter for a glossy finish.
  9. Serve: Garnish with fresh cilantro and serve hot with the steamed basmati rice.

Tips

  • Don’t skip soaking the rice: Soaking basmati for 20 minutes ensures each grain cooks evenly and stays separate, not sticky.
  • Use full-fat cream: Heavy cream gives the sauce its signature richness. Half-and-half will work but will be thinner and less luxurious.
  • If your sauce is too tangy: Add a pinch of sugar (about ½ teaspoon) to balance the tomatoes. This is common in restaurant versions.
  • Paneer substitute: If you can’t find paneer, use firm tofu (pressed and cubed) or halloumi (blanched to reduce salt). The texture will differ slightly, but the sauce will still be delicious.

Serving Suggestions

Serve the paneer butter masala in a shallow bowl with a generous portion of basmati rice on the side. For a complete meal, add a simple green salad or a side of sautéed spinach. You can also serve it with naan or roti instead of rice, if you prefer. A spoonful of plain yogurt on the side helps cool the spice.

Variations

  • Vegan: Replace the butter with vegan butter or oil, the cream with full-fat coconut cream, and the paneer with extra-firm tofu (pressed and pan-seared). The flavor will be slightly coconutty but still rich.
  • Spicier: Add 1–2 finely chopped green chilies with the ginger-garlic, or increase the cayenne to 1 teaspoon.
  • Smoky flavor: After blending the sauce, you can add a pinch of smoked paprika or a drop of liquid smoke to mimic the traditional “dhungarâ€� (charcoal smoking) method.
  • Add vegetables: Stir in 1 cup of peas or diced bell peppers along with the paneer for extra color and nutrition.

Storage and Reheating

Store leftover paneer butter masala and rice separately in airtight containers in the refrigerator for up to 4 days. To reheat, warm the curry gently on the stovetop over low heat, adding a splash of water or milk to loosen the sauce. The rice can be reheated in the microwave with a damp paper towel over it for 1–2 minutes, or in a steamer. You can also freeze the curry (without the rice) for up to 2 months; thaw overnight in the fridge and reheat gently. The cream may separate slightly after freezing, but stirring will bring it back together.

Frequently Asked Questions

Can I use store-bought paneer? Yes, store-bought paneer works well. To keep it soft, soak the cubes in warm water for 10 minutes before adding to the sauce, then drain.

Why is my sauce grainy? This usually happens if the tomatoes are not fully cooked before blending, or if the cashews are not soaked long enough. Blend for a full 2 minutes to ensure a silky texture.

Can I make this ahead of time? Absolutely. The curry tastes even better the next day as the flavors meld. Prepare it up to 2 days ahead, store in the fridge, and reheat gently.

Is paneer butter masala gluten-free? Yes, this recipe is naturally gluten-free as long as your garam masala and chili powder are certified gluten-free (most are).

How do I prevent the cream from curdling? Always add the cream to a simmering (not boiling) sauce, and stir constantly. Also, remove the pan from heat before adding the butter at the end.

Can I reduce the calories? Use light cream (or half-and-half) and reduce the butter to 1 tablespoon, and use low-fat paneer if available. The sauce will be less rich but still flavorful.

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