Paneer tikka butter masala is a beloved North Indian dish where smoky, charred cubes of paneer are simmered in a rich, creamy, and mildly spiced tomato-cashew gravy. It combines the best of two classics—tandoori-style paneer tikka and silky butter masala—creating a restaurant-worthy meal that feels indulgent yet is surprisingly simple to make at home. The key is the double cooking: grilling the paneer first adds a smoky depth, while the velvety sauce balances tang, sweetness, and heat.
Ingredients
- For the paneer tikka:
- 1 lb (450 g) paneer, cut into 1-inch cubes
- 1/2 cup (120 g) plain whole-milk yogurt
- 1 tbsp (15 ml) lemon juice
- 1 tbsp (15 g) ginger-garlic paste
- 1 tsp (5 g) garam masala
- 1 tsp (5 g) ground cumin
- 1/2 tsp (2.5 g) turmeric
- 1/2 tsp (2.5 g) red chili powder (adjust to taste)
- 1 tsp (5 g) salt
- 2 tbsp (30 ml) vegetable oil, plus more for brushing
- 1 medium red onion, cut into large chunks
- 1 bell pepper, cut into large chunks
- For the butter masala sauce:
- 2 tbsp (30 g) unsalted butter
- 1 tsp (5 g) cumin seeds
- 1 large onion, finely chopped (about 1 cup / 150 g)
- 1 tbsp (15 g) ginger-garlic paste
- 2 large tomatoes, pureed (about 1.5 cups / 375 ml)
- 1/2 cup (120 ml) heavy cream
- 1/4 cup (30 g) raw cashews, soaked in warm water for 15 minutes
- 1 tsp (5 g) garam masala
- 1 tsp (5 g) ground coriander
- 1/2 tsp (2.5 g) red chili powder (adjust to taste)
- 1 tsp (5 g) sugar (optional, to balance acidity)
- Salt to taste
- 2 tbsp (30 g) butter, extra for finishing
- 1 tbsp (15 ml) heavy cream, extra for garnish
- Fresh cilantro, chopped, for garnish
Instructions
- Marinate the paneer: In a large bowl, whisk together yogurt, lemon juice, ginger-garlic paste, garam masala, cumin, turmeric, red chili powder, salt, and 2 tbsp oil. Gently fold in the paneer cubes, onion chunks, and bell pepper chunks. Cover and refrigerate for at least 30 minutes (or up to 2 hours for deeper flavor).
- Preheat and skewer: Preheat your oven to 450°F (230°C). If using wooden skewers, soak them in water for 30 minutes. Thread paneer, onion, and bell pepper alternately onto skewers. Brush lightly with oil.
- Roast the tikka: Place skewers on a baking sheet lined with foil. Roast for 10–12 minutes, turning once, until the paneer is lightly charred at the edges. Alternatively, grill on a stovetop grill pan over medium-high heat for 2–3 minutes per side. Set aside.
- Start the sauce: While the tikka roasts, melt 2 tbsp butter in a large skillet or Dutch oven over medium heat. Add cumin seeds and let them sizzle for 30 seconds. Add chopped onion and sauté until golden brown, about 5–7 minutes.
- Add aromatics and tomatoes: Stir in ginger-garlic paste and cook for 1 minute until fragrant. Add tomato puree, garam masala, ground coriander, red chili powder, and salt. Cook, stirring occasionally, until the tomatoes reduce and the oil separates from the sides, about 8–10 minutes.
- Blend the sauce: Transfer the tomato mixture to a blender. Add the soaked cashews (drained) and blend until completely smooth. Return the puree to the skillet.
- Finish the gravy: Stir in heavy cream and sugar (if using). Simmer gently for 5 minutes, adding a splash of water if the sauce is too thick. Taste and adjust salt and spice.
- Combine tikka and sauce: Gently fold the roasted paneer, onion, and bell pepper into the sauce. Simmer for 2–3 minutes to meld flavors. Finish by stirring in the extra 2 tbsp butter and a drizzle of cream.
- Garnish and serve: Sprinkle with fresh cilantro and serve hot with naan, rice, or roti.
Tips
- Don’t skip marinating: Even 30 minutes makes a difference—it tenderizes the paneer and infuses flavor. For a smokier taste, you can add a pinch of smoked paprika or liquid smoke to the marinade.
- Use full-fat yogurt and cream: Low-fat versions can curdle or make the sauce thin. If you want a lighter option, substitute half the cream with whole milk, but expect a less rich texture.
- Char the paneer well: The charred spots are where the smoky flavor lives. Don’t be afraid to let the edges brown deeply—it adds complexity to the final dish.
- Adjust heat gradually: Red chili powder varies in heat. Start with 1/2 tsp and add more after tasting the sauce.
Serving Suggestions
Serve paneer tikka butter masala with warm butter naan, garlic naan, or steamed basmati rice. A side of pickled onions or a simple cucumber salad adds a refreshing contrast. For a complete meal, pair with dal makhani and a cooling raita.
Variations
- Vegetable tikka butter masala: Replace paneer with extra firm tofu (pressed and cubed) or a mix of cauliflower, mushrooms, and zucchini. Adjust roasting time accordingly.
- Smoky version: After blending the sauce, heat a small piece of charcoal until red-hot, place it in a steel bowl inside the sauce, and pour 1 tsp of melted butter over it. Cover immediately for 2 minutes to infuse a deep smoky aroma (dhungar method).
- Vegan adaptation: Use firm tofu or vegan paneer, coconut or almond yogurt for the marinade, and replace butter with vegan butter or coconut oil. Use full-fat coconut cream instead of heavy cream.
- Spicier kick: Add 1–2 finely chopped green chilies to the sauce along with the ginger-garlic paste.
Storage and Reheating
Store leftovers in an airtight container in the refrigerator for up to 3 days. The sauce thickens as it sits; add a splash of water or cream when reheating. Reheat gently on the stovetop over low heat, stirring frequently, until piping hot (165°F / 74°C). You can also microwave in 30-second bursts, stirring in between. Freeze the sauce (without the paneer) for up to 2 months; thaw overnight in the fridge and add freshly roasted paneer when reheating.
Frequently Asked Questions
Can I use store-bought paneer tikka masala paste? Yes, but it won’t have the same fresh, layered flavor. If using paste, skip the individual spices in the sauce and add 2–3 tbsp of paste along with the tomatoes, adjusting salt.
Why did my sauce curdle? Curdling usually happens when the cream is added to a boiling hot sauce or if the yogurt in the marinade was not whisked well. Always simmer gently after adding cream, and use full-fat cream. If it curdles, blend the sauce again until smooth—it will still taste fine.
Can I make this ahead of time? Yes, you can prepare the sauce up to 2 days ahead and refrigerate. Roast the paneer and combine just before serving to keep the paneer from becoming soggy.
How do I make it less spicy? Reduce or omit the red chili powder in both the marinade and sauce. Add an extra tablespoon of cream or a teaspoon of sugar to balance heat.
Is paneer supposed to be chewy? Paneer should be soft and slightly springy. If it’s rubbery, it was likely overcooked or cooked at too high a temperature. Roast just until charred, and simmer gently in the sauce.
Can I grill the paneer on a stovetop without skewers? Absolutely. Just brush the pieces with oil and grill them directly on a grill pan or cast-iron skillet over medium-high heat, turning until charred.
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