Paneer Butter Masala (Restaurant-Style Paneer Makhani)

Paneer Butter Masala – soft paneer cubes simmered in a silky onion tomato gravy enriched with butter and cream. Follow my easy recipe to make a restaurant-style curry at home.

If there’s one dish that defines pure comfort in Indian cooking, it’s Paneer Butter Masala – a.k.a Butter Paneer or Paneer Makhani.

Soft cubes of paneer are gently simmered in an ultra rich, creamy-buttery tomato sauce that’s silky smooth, lightly spiced and a whole lot decadent! It’s one of my favorite takeout choices but guess what? It tastes EVEN BETTER when homemade!

If you want to recreate that butter paneer magic yourselves, take a look at my recipe, which delivers restaurant-style flavor and texture… if I say so myself! 😊

This is one of THE most popular vegetarian dishes in Indian cuisine, along with Saag Paneer of course. I guarantee you will fall in love at first bite.

Here’s What You’ll Need

You can throw this dish together in minutes if you have made my Onion Tomato Masala sauce – you will find the option to make Butter Paneer with the pre-made sauce in the recipe card.

• Marinade ingredients: Greek yogurt, lemon juice, neutral oil, garlic, ginger, Kasmiri chili powder, garam masala and salt.
• Paneer: Fresh Indian cheese, cubed.
• Onion: This recipe version includes diced onion for depth of flavor.
• Tomatoes: Large red vine tomatoes or good quality canned tomatoes and tomato paste.
• Sugar: To balance the acidity of canned tomatoes.
• Garlic and ginger: For best results, make your own fresh garlic and ginger paste (see tip box below).
• Cashew nuts: A handful of raw cashews add creaminess to the sauce. I like to add some whole ones for texture.
• Green chili: Discard the seeds to keep the curry mild.
• The spices: Kashmiri chili powder or deggi merch for bright red color without too much spiciness, garam masala.
• Whole spices: Bay leaf, cloves and green cardamom pods.
• Unsalted butter: The key ingredient for the signature rich “makhani” flavor.
• Cream: A splash of heavy cream (or pouring cream) adds body and richness to the sauce.
• To serve: Kasuri Methi (dried fenugreek leaves), crushed.

Garlic and Ginger Paste

Make fresh garlic and ginger paste by blending 1 whole peeled garlic and 1/4 cup (40g) fresh chopped ginger with 2 tbsp vegetable oil and 1 teaspoon coarse salt in a small food processor such as the Ninja Food Chopper. Any paste not used in this recipe can be frozen in ice cube trays to use later.

How to Make Paneer Butter Masala

1. Prepare the sauce Heat oil in a Dutch oven and sauté the cloves, cardamom and bay leaf until fragrant. Add garlic, ginger and tomato paste and cook for 2 minutes. Add the Kasmiri chili powder, sugar and raw cashews and continue cooking for 2 minutes. Stir in the diced onion and cook until softened (5-7 minutes). Pour in the tomatoes, bring to a simmer, cover and cook for 20 minutes.
2. Blend the sauce Blend the sauce using a Vitamix or immersion blender until very smooth, adding a little water if needed.
3. Sieve the sauce Pour the sauce through a fine sieve to remove and discard any solids.
4. Marinate the cheese While the sauce is cooking, combine all the marinade ingredients in a large bowl, add the paneer and marinate for 15-20 minutes.
5. Pan fry the paneer Heat oil in a large frying pan and fry the paneer cubes over medium high-heat until golden and crisp – reserve the marinade it to use later. Use a slotted spoon to transfer the paneer into a bowl and wipe the pan clean.
6. Incorporate the butter Add a splash more oil to the pan and fry the chili and cashew nuts for a couple of minutes. Add the masala sauce and bring to a simmer. Stir in the butter and reserved paneer marinade (there’s tons of flavor here so don’t skip).
7. Add the cream and paneer Stir in the cream and paneer and simmer gently for a couple of minutes – avoid cooking for too long as it can make the cheese a bit rubbery.
8. Finishing touches Taste the sauce and adjust the seasoning if needed. Garnish with crushed fenugreek leaves and a final drizzle of cream and serve.

Serving Suggestions

This wonderfully rich curry is perfect for serving as part of an Indian multi-dish feast! Serve with basmati rice and garlic naan and pair with dishes such as Saag Paneer or Dal Makhani to keep the meal vegetarian. If you are catering for all diets, try Lamb Rogan and Shrimp Dhansak.

Recipe Notes and Tips

• Leftovers and storage: This is one of those dishes that actually gets better with time. Just store it in an airtight container in the fridge for up to 4 days and let all those flavors deepen overnight.
• Freezing: Paneer Butter Masala is suitable for freezing – portion into suitable containers or freezer bags and consume within two months.
• Reheating: Add a splash of water or cream to loosen the sauce and bring back that silky texture.

Butter Paneer Variations

• It pays to prep ahead: You can make this dish in minutes if you have a batch of my homemade Masala Sauce ready prepped. Follow the method as written but skip making the sauce in the recipe card, using 1-2 cups of the ready prepped sauce with water, as needed, to loosen it. Stir in the butter, cream and reserved marinade then add the cheese – done!

• Vegan Butter Paneer: Use plant-based butter and cream and replace the paneer with extra firm tofu.
• FODMAP-friendly version: Skip the onion, garlic and cashews (all are high fodmap) – simply omit and use a purely tomato-based sauce. Use firm tofu instead of paneer and a plant-based cream alternative such as coconut cream.

Frequently Asked Questions

Butter Paneer is milder, sweeter and uses either raw or lightly fried paneer. Paneer Tikka Masala is spicier and the paneer is marinated and roasted before adding to the sauce.

This is a mild curry with only a hint of warmth from the spices. The sauce is very rich, creamy and slightly sweet.

If using firm paneer, you can soak the cubes in warm water for 15–20 minutes before adding them to the curry. Make sure not to overcook the paneer so it remains soft.

This dish is rich and buttery as the name would suggest – perfect as an occasional treat. You can cut down on the calories and fat by using low fat paneer, reducing the amount of butter and cream and leaving out the cashew nuts.

If you try this Paneer Butter Masala recipe, I’d love to hear what you think! Leave a rating and comment below – it really helps others find the recipe : ) Follow me on Pinterest for more easy recipes and don’t forget to tag me on  @Instagram or TikTok so I can see your creations.