Paneer Butter Masala is one of the most loved paneer curries, both in restaurants and Indian homes. I’ve been making this recipe for years, refining it until it became a family favorite. This restaurant-style curry is creamy, lightly spiced, and always a hit. With my step-by-step photos and video, you’ll see how easy it is to make at home.

Why This Paneer Butter Masala Recipe Works

Also called Butter Paneer, this curry is made with paneer cubes simmered in a classic makhani gravy of tomatoes, cashews, butter, and cream. The curry sauce is smooth and creamy with a mild sweetness that balances the tang of tomatoes, while butter and cream add richness.

Unlike spicier gravies such as Paneer Tikka Masala or Kadai Paneer, Paneer Butter Masala is gentler in heat and has a distinct buttery flavor. Paneer soaks up the sauce beautifully, making it one of the most popular paneer dishes in Indian restaurants and homes.

I first learned the basics of makhani gravies during my cooking school training. Over the years, I’ve tested and refined this Paneer Butter Masala recipe many times at home.

It has now become a family favorite – something I cook often when we want a comforting, restaurant-style curry without much effort. With just 20 minutes of prep and 25 minutes on the stove, it’s practical enough even on busy days.

It’s also one of the most loved recipes on the blog, tried by thousands of readers. Scroll to the comments to see their feedback.

What Goes Into This Recipe

1. Tomatoes: Ripe, red tomatoes form the base. When not in season, use canned whole tomatoes for better flavor.
2. Cashews: Adds creaminess and a hint of sweetness. Swap with soaked almonds or skip for nut-free. See my Paneer Makhani for a cream-only version.
3. Cream: Thickens and enriches the sauce. For lighter curry, skip it. For vegan, use coconut cream.
4. Butter: Brings richness and a buttery note. Use vegan butter or neutral oil for plant-based.
5. Paneer: Fresh paneer works best. Homemade is ideal, but packaged paneer is fine if softened before cooking. For vegan, use firm tofu or tempeh.
6. Spices & Herbs: Kashmiri red chili powder for color, garam masala for warmth, kasuri methi for depth, coriander leaves for garnish. The only whole spice is tej patta (bay leaf).

If you love the creamy, mildly spiced, and restaurant-style flavors of Paneer Butter Masala, here are some other paneer recipes you might enjoy. These gravies are rich, flavorful, and perfect with naan, roti, or rice:

How to Make Paneer Butter Masala

You will have to do some light prep work before you begin making this delicious Paneer Butter Masala recipe. It starts with soaking your cashews, making tomato puree and blending soaked cashews.

Preparation

1. Soak 18 to 20 cashews in ⅓ cup hot water for 15 to 20 minutes.

2. While the cashews are soaking, you can prep the other ingredients. It’s time for chopping tomatoes, chopping and preparing the ginger-garlic paste, and slicing paneer into cubes.

3. To make the ginger garlic paste, crush a 1 inch piece of peeled ginger with 3 to 4 small to medium-sized garlic cloves in a mortar & pestle. Continue crushing until it is a semi-fine or fine paste. Keep aside.

Note: Don’t add any water while crushing ginger & garlic.

4. After 15 to 20 minutes, drain the water and add the soaked cashews to a blender or mixer-grinder.

Also, add 2 to 3 tablespoons fresh water (or as much as is required to blend to a fine paste).

5. Blend to a smooth paste without any tiny bits or chunks of cashews. Remove the cashew paste from the blender and set it aside.

6. In the same blender, add 2 cups of diced or roughly chopped tomatoes.

Note: There’s no need to blanch the tomatoes or to wash the blender pitcher before blending.

7. Blend to a smooth tomato puree. Set aside.

Note: Don’t add any water while blending the tomatoes.

Make The Base Masala

8. Heat a thick bottomed pan or a heavy pan. Keep the heat to a low or medium-low. Add 2 tablespoons (or 3 to 4 tablespoons for a richer version) butter in a pan. Either salted or unsalted butter can be used.

Tip: Alternatively, you can add 1 tablespoon oil + 1-2 tablespoons of butter to the pan. Adding oil prevents the butter from browning too quickly.

9. Keep the the heat to a low. Add 1 medium-sized tej patta and fry for 2 to 3 seconds, or until fragrant.

10. Add the prepared crushed ginger-garlic or 1 teaspoon ready-made ginger-garlic paste.

11. Sauté until the raw aroma of the ginger-garlic disappears, about 10 to 12 seconds.

12. Pour in the prepared tomato purée.

Note: Be careful while adding the purée as it may splutter.

13. Mix it very well with the butter.

14. Begin to cook the tomato purée on a low to medium-low or medium heat. Stir at intervals.

15. The tomato purée mixture will start simmering.

16. If the tomato purée splutters too much while cooking, then cover the pan partly with a lid or cover fully with a splatter guard (channi lid).

17. Continue stirring occasionally.

18. Simmer the purée for 5 to 6 minutes.

19. Add 1 teaspoon Kashmiri red chili powder or deghi mirch.

You can also opt to add just ½ teaspoon Kashmiri red chili powder, or ¼ – ½ teaspoon of cayenne, paprika or any other variety of red chilli powder that you prefer.

20. Mix well and continue to stir and sauté the tomato purée.

21. Sauté till the butter starts leaving the sides of the pan and the entire tomato purée mixture comes together as more of a thick and glossy paste.

Note: This entire cooking/sautéing process takes about 14 to 17 minutes on a low to medium-low heat. Time will vary depending on the thickness of the pan, size, the intensity of flame etc.

Sauté Cashew Paste

22. Now add the prepared cashew paste.

23. Mix the cashew paste very well with the cooked tomato puree and continue to stir and sauté on a low to medium-low heat.

After adding cashew paste, be sure to continuously stir the gravy.

24. Sauté until the cashew paste is cooked and the butter begins to leave the sides of the masala. The cashew will cook quickly, just around 3 to 4 minutes on a low heat. And don’t forget to keep on stirring non-stop!

25. Next add 1.5 cups water.

Make Paneer Butter Masala

26. Mix the water very well with the tomato-cashew masala. If there are lumps, then break them with a spoon or use a wired whisk for mixing.

27. Let the curry simmer and come to a boil on a low to medium-low heat. Stir occasionally.

28. After 2 to 3 mins, add ginger julienne (about 1-inch ginger – cut in thin, matchstick-like strips). Reserve a few for garnishing. The curry will begin to thicken.

29. After 3 to 4 minutes, add 1 or 2 slit green chiles.

30. Also add salt to taste and, if necessary, ¼ to 1 teaspoon sugar depending on the sourness of the tomatoes.

Tip: If you add cream, then you will need to add less sugar. You can also opt to omit sugar entirely if you prefer.

31. Mix very well and simmer for a minute.

32. After the gravy thickens to your desired consistency, then add the paneer cubes (200 or 250 grams).

Tip: Keep in mind the consistency you want before you add paneer, as you will be cooking the paneer for just a few seconds, until it is warmed through. You can also fry the paneer and then add it once the gravy is to your liking.

33. Stir and mix the paneer cubes gently in the gravy. You can switch off the heat at this point.

Tip: If your paneer still tastes raw at this point, leave the heat on low until after you add the cream in step 35.

34. Now quickly add 1 teaspoon crushed dry fenugreek leaves (kasuri methi leaves) and 1 teaspoon garam masala to the gravy.

Note: The addition of crushed dry fenugreek leaves gives a restaurant flavor to this curry, but it is optional and can be skipped.

35. Next add 2 to 3 tablespoons of low-fat or light cream or 1 to 2 tablespoons of heavy cream or whipping cream.

36. Stir gently but well. If you haven’t yet, switch off the heat.

37. Serve Paneer Butter Masala hot garnished with 1 to 2 tablespoons of chopped coriander leaves (cilantro) and the remaining ginger julienne. You can also drizzle some cream or dot with butter while serving. Enjoy!

Serving Ideas

Storage Suggestions

Store leftovers in an airtight container in the fridge for up to 1 day. The curry thickens as it cools, so add a splash of water or milk while reheating.

Warm gently on the stovetop over low heat. Stir occasionally and avoid boiling, as cream can split.

Dassana’s Notes

• Tomato Purée: Be sure that your tomatoes are puréed very well. If you want, you can also strain the tomato purée.
• Cooking Tomato Purée: Cook the tomato purée until the butter separates at the sides and the mixture looks glossy and cohesive. This is the sign that it’s well sautéed. If you stop too early, the curry will have a raw tomato taste.
• Cashew Paste: To blend cashews to a fine consistency, you should soak them in hot water for about 15 to 20 minutes. Also, be sure to use raw cashews rather than roasted.
• Taste and Flavor: If the gravy tastes tangy or sour, then balance it out with a bit of sugar (up to 1 teaspoon) or cream. Also, note that if you add cream then you will likely have to add less sugar in the gravy.
• Frying Paneer: You can fry the paneer cubes if you want and then add in the prepared gravy or sauce.
• Kasuri Methi Tip: Always crush kasuri methi between your palms before adding. This releases its aroma better and enhances flavor.
• Consistency Fix: If your Paneer Butter Masala gravy becomes too thick after resting, add a splash of hot water and gently reheat while stirring until it reaches the desired consistency.

Your Questions, My Answers

Here are some common questions and answers on making Paneer Butter Masala recipe at home, including ingredient swaps, cooking tips, and vegan options.

Tomatoes & Gravy Related Questions

Onions, Cashews & Substitutes

Butter, Cream & Vegan Questions

Spices, Herbs & Flavor Adjustments

Paneer Texture & Handling Tips

Other Common Questions

Paneer Butter Masala recipe from the archives was first published on April 2013.