Paneer Butter Masala – A Creamy North Indian Classic

Few dishes capture the essence of North Indian cuisine like Paneer Butter Masala. It’s rich, velvety, and gently spiced — the kind of dish that instantly makes a meal feel special. Soft cubes of paneer are enveloped in a luscious tomato and cashew-based sauce, enriched with butter and cream, and finished with a sprinkle of kasuri methi for that unmistakable restaurant-style flavor.

This curry isn’t fiery or overly hot. Instead, it’s mellow, slightly sweet, and aromatic, making it a favorite with kids and adults alike. Whether you’re celebrating an occasion or simply treating yourself, Paneer Butter Masala delivers comfort in every bite.

The Story Behind Paneer Butter Masala

Paneer Butter Masala is believed to have been developed in restaurants in Delhi, evolving from the famous Butter Chicken. While Butter Chicken uses marinated chicken, this vegetarian variation replaces it with paneer, creating a dish that’s just as indulgent. Over the years, it has become a staple on Indian restaurant menus worldwide.

Why You’ll Love This Recipe

Silky and luxurious: The cashew paste and cream give the sauce a smooth texture.
Balanced flavors: Tangy from tomatoes, sweet from cashews, rich from butter, and aromatic from spices.
Restaurant-style finish: With simple ingredients, you can achieve the same depth of flavor at home.
Adaptable: Easily tweak spice levels, creaminess, or even make it vegan with tofu.

Ingredients at a Glance

Here’s what you’ll need to make Paneer Butter Masala at home:

For the gravy

4–5 ripe red tomatoes, pureed
12–15 cashews, soaked and blended to a paste
2–3 tablespoons butter (unsalted preferred)
1 tablespoon oil (optional, helps prevent butter from burning)
1 bay leaf (optional)
1 teaspoon ginger-garlic paste
½–1 teaspoon Kashmiri red chili powder (for color and mild heat)
½ teaspoon turmeric powder
1 teaspoon coriander powder
½ teaspoon cumin powder
½ teaspoon garam masala
1 teaspoon sugar (adjust to taste)
1 teaspoon kasuri methi (dried fenugreek leaves), crushed
2–3 tablespoons cream
Salt to taste
1 to 1½ cups water, to adjust consistency

For the paneer

200–250 grams paneer, cut into cubes
Fresh coriander leaves, chopped (for garnish)

Step-by-Step Recipe

1. Prepare the Cashew Paste & Tomato Purée

Soak cashews in hot water for 15–20 minutes. Drain and blend with a splash of water until completely smooth.
Puree the tomatoes until you have a smooth sauce base.

2. Start the Gravy

Heat butter (and oil, if using) in a heavy pan. Add bay leaf and sauté briefly until fragrant.
Stir in ginger-garlic paste and cook for 30 seconds until the raw aroma fades.
Add the tomato purée and cook on medium heat until the mixture thickens and the raw smell disappears.

3. Add Cashew Paste & Spices

Stir in the cashew paste and cook until the gravy turns glossy.
Add chili powder, turmeric, coriander powder, and cumin powder. Mix well and cook until oil begins to release from the sides of the pan.

4. Adjust Consistency

Pour in 1 cup of water, stir, and let the sauce simmer for 8–10 minutes.
Add salt, sugar, and garam masala. Simmer gently to allow flavors to meld.

5. Finish the Curry

Add the paneer cubes and simmer on low heat for 2–3 minutes, just enough to warm them through. Avoid overcooking to keep paneer soft.
Crush kasuri methi between your palms and add it to the curry.
Stir in cream, cook for another minute, then turn off the heat.

6. Garnish & Serve

Garnish with chopped coriander leaves and a swirl of cream or an extra knob of butter for indulgence.

Serving Suggestions

Paneer Butter Masala is best enjoyed hot, paired with:

Naan or Butter Naan – soft, pillowy bread to soak up the rich gravy.
Jeera Rice – fragrant rice with cumin, perfect for a balanced meal.
Paratha or Roti – simple, rustic flatbreads that complement the richness.
Biryani-style sides – for festive occasions, pair with pulao or biryani and a simple salad.

Expert Tips

Paneer softness: To keep paneer soft, soak cubes in warm water for 10 minutes before adding to the curry.
Spice balance: Kashmiri chili powder adds vibrant color without too much heat; adjust with regular chili powder if you want more spice.
Cream substitutes: Use cashew cream or almond cream for a dairy-free option.
Vegan version: Replace paneer with tofu, butter with vegan butter, and cream with coconut cream.
Consistency control: The curry thickens as it cools. Add hot water before reheating to maintain smooth texture.

Final Thoughts

Paneer Butter Masala is one of those dishes that never fails to impress. It has just the right balance of creamy indulgence and gentle spices, making it a universal favorite. With this recipe, you can bring restaurant-style flavors straight to your kitchen — perfect for weeknight dinners, family get-togethers, or festive celebrations.