Paneer Butter Masala Recipe That Tastes Like a Five-Star Dinner (Minus the Five-Star Bill)

You want a restaurant-level dish without the mystery oils and the wait time? This paneer butter masala recipe hits like a flavor freight train—creamy, bold, and dangerously scoopable with naan. It’s that rare combo: weeknight-friendly and dinner-party impressive.

The secret? A silky tomato-cashew base that hugs golden paneer cubes like they’re VIPs. If comfort food had a luxury tier, this is the upgrade.

What Makes This Recipe Awesome

Silky, rich gravy without being greasy: The cashew-tomato blend gives body and gloss, so you get creaminess without drowning in oil.
Layered spices, not a spice bomb: Garam masala, kasuri methi, and Kashmiri chili build flavor and color without turning it into a heat challenge.
Restaurant texture at home: Blending and straining the sauce creates that signature smooth, velvety finish.
Customizable richness: Butter and cream are adjustable.
Want it lighter? Go easy. Want it lush?
You already know.
Fast payoff: With prep done, this comes together in under 40 minutes. Your takeout app won’t even open in time.

Shopping List – Ingredients

Paneer: 400–500 g, cut into 1-inch cubes
Butter: 3–4 tablespoons (divided)
Oil: 1 tablespoon (helps prevent butter from burning)
Onion: 1 medium, roughly chopped
Tomatoes: 4 medium ripe or 1.5 cups tomato puree
Cashews: 12–15 whole, raw
Garlic: 4–5 cloves
Ginger: 1-inch piece
Green chili: 1, slit (optional)
Kashmiri red chili powder: 1–1.5 teaspoons (for color, mild heat)
Coriander powder: 1 teaspoon
Cumin powder: 1/2 teaspoon
Turmeric: 1/4 teaspoon
Garam masala: 1 teaspoon
Kasuri methi (dried fenugreek leaves): 1–2 teaspoons, crushed
Sugar or honey: 1 teaspoon (balances acidity)
Salt: to taste
Heavy cream (or fresh cream): 1/3–1/2 cup
Whole spices (optional but recommended): 1 bay leaf, 2 green cardamoms, 3–4 cloves, 1 small cinnamon piece
Water: 1–1.5 cups, as needed
Fresh cilantro: a small handful, chopped (for garnish)

How to Make It – Instructions

Soften the cashews and build the base: In a pan, heat 1 tablespoon butter + 1 tablespoon oil. Add onions and sauté on medium until translucent.
Toss in garlic, ginger, green chili, and cashews. Cook 2–3 minutes until fragrant.
Add tomatoes and simmer: Add chopped tomatoes and a big pinch of salt. Cook until the tomatoes break down and the mix looks jammy, 7–9 minutes.
Turn off heat; let it cool.
Blend to velvet: Transfer the mixture to a blender with 1/2 cup water. Blend until perfectly smooth. For that restaurant silk, strain the puree back into a bowl using a fine sieve.
Optional paneer prep: If your paneer is firm, soak cubes in hot water for 10 minutes to soften.
Pat dry. You can lightly pan-sear in 1 teaspoon butter until just golden on two sides—tasty but optional.
Bloom the spices: In the same pan, add 1 tablespoon butter. Toss in whole spices (bay leaf, cardamom, cloves, cinnamon).
When aromatic, add Kashmiri chili, coriander, cumin, and turmeric. Stir for 10–15 seconds; don’t burn.
Sauce it up: Pour in the strained tomato-cashew puree. Rinse the blender with a splash of water and add it to the pan.
Simmer on low for 6–8 minutes until thick and glossy, stirring occasionally.
Finish with richness: Stir in sugar/honey, salt, and garam masala. Add 1/3 cup cream and 1 tablespoon butter. Simmer 2 minutes until the sauce hugs the spoon.
Paneer goes in: Gently add paneer cubes.
Simmer on low for 3–4 minutes so the flavors marry without overcooking.
Kasuri methi magic: Crush kasuri methi between your palms and stir it in. Adjust salt, sweetness, and spice. Add a splash of water if it’s too thick.
Garnish and serve: Swirl 1–2 teaspoons cream on top, sprinkle cilantro, maybe a tiny pat of butter because why not?

Storage Tips

Fridge: Store in an airtight container for 3–4 days.
The sauce thickens as it sits; loosen with water or warm milk when reheating.
Freezer: Freeze the sauce without paneer for up to 2 months. Add fresh paneer when reheating for best texture.
Reheat gently: Low heat on the stove is ideal; stir often so the cream doesn’t split. Microwave works, but go short bursts and mix.

Health Benefits

Protein boost: Paneer brings a solid protein hit, helpful for muscle repair and satiety.
Calcium and phosphorus: Good for bones and teeth—yes, your mom was right.
Lycopene from tomatoes: Antioxidant support that doesn’t taste like homework.
Controlled richness: Butter and cream are adjustable.
You can lighten it with milk or half-and-half if that’s your vibe.

Avoid These Mistakes

Skipping the strain: Unstrained sauce = grainy texture. Not the luxurious moment we’re going for.
Burning the ground spices: They turn bitter fast. Keep heat low and stir constantly for 10–15 seconds, tops.
Overcooking paneer: Boiling it hard makes it rubbery.
Gentle simmer only.
Too acidic: Tomatoes can be sharp. A teaspoon of sugar or honey balances it—this is flavor, not dessert.
Going heavy on heat: Kashmiri chili is for color. If you want more spice, add a little regular chili powder, not a mountain.

Mix It Up

Nut-free version: Swap cashews for 1/4 cup melon seeds (magaz) or 2 tablespoons sunflower seeds + 2 tablespoons cream.
Lighter version: Use 1 tablespoon butter + 1/4 cup cream, then thin with milk.
Still lush, less heavy—win-win.
Smoky twist: Add a few drops of liquid smoke or briefly dhungar (smoke) the curry with a hot charcoal and ghee, FYI this is next-level.
Veg upgrade: Stir in blanched peas, sautéed bell peppers, or mushrooms for a mixed paneer masala situation.
Heat seekers: Add a chopped green chili during the onion sauté, or finish with a pinch of crushed chili flakes.
Dairy swap: For a vegan take, use firm tofu, plant butter, and coconut cream or cashew cream. IMO tofu + cashew cream is the move.

FAQ

Can I use store-bought tomato puree instead of fresh tomatoes?

Yes. Use 1.5 cups of good-quality puree.

It’s consistent and often sweeter; you might need less sugar to balance.

How do I keep the sauce ultra-smooth?

Blend thoroughly with enough liquid, then strain through a fine sieve. Also, cook the onion-tomato base well before blending—soft veggies blend smoother.

Is paneer butter masala very spicy?

No. It’s mild to medium.

Kashmiri chili brings color more than heat. Adjust with green chilies or regular chili powder if you want it hotter.

What’s the difference between paneer butter masala and butter paneer?

They’re essentially the same dish in most restaurants. Minor variations exist in spice balance or sweetness, but the creamy tomato-butter profile is identical.

Can I make it ahead?

Absolutely.

Make the sauce, refrigerate or freeze, then reheat and add paneer just before serving. This keeps the paneer soft and bouncy.

What do I serve it with?

Butter naan, garlic naan, roti, or jeera rice. Add sliced onions and a wedge of lemon for that classic table vibe.

My sauce split after adding cream—help?

Take it off heat, whisk in a splash of warm water or milk, and reheat gently.

Next time, lower the flame before adding cream.

My Take

Paneer butter masala is the dish that converts “I don’t cook” people into kitchen believers. It rewards simple technique—slowly sauté, blend smooth, simmer gently—with outrageously good flavor. You control the richness, the heat, the vibe.

And when that first swipe of naan disappears into a glossy, brick-red pool of sauce? That’s your proof of concept.