π§ Ingredients:
For the gravy base:
- 2 tablespoons butter
- 1 tablespoon oil
- 1 large onion (roughly chopped)
- 3 large tomatoes (roughly chopped)
- 12β15 cashew nuts
- 4β5 cloves of garlic
- 1 inch ginger (peeled)
- 2β3 green cardamom pods
- 1 small piece cinnamon (about 1 inch)
- 1 bay leaf
- 1 teaspoon cumin seeds
Spices:
- 1 teaspoon red chili powder (Kashmiri red chili for good color)
- 1 teaspoon turmeric powder
- 1 teaspoon coriander powder
- 1 teaspoon garam masala
- Β½ teaspoon kasuri methi (dried fenugreek leaves)
- Salt to taste
- Β½ teaspoon sugar (optional, to balance acidity)
Other:
- 200β250 grams paneer (cut into cubes)
- 3 tablespoons fresh cream (or heavy cream)
- 1 cup water (adjust for consistency)
- 2 tablespoons butter (extra for final touch)
Garnish:
- Fresh coriander leaves
- Extra cream for drizzling (optional)
π₯£ How to Make Paneer Butter Masala (Step-by-Step):

1. Prepare the Gravy Base:
- Heat 1 tablespoon butter + 1 tablespoon oil in a pan on medium flame.
- Add cumin seeds, cardamom pods, bay leaf, and cinnamon stick. SautΓ© for 30 seconds until aromatic.
- Add roughly chopped onions, ginger, and garlic. Cook till onions turn soft and light golden (around 3β4 minutes).
- Now add cashew nuts and chopped tomatoes.
- Add a pinch of salt and cook until tomatoes turn soft and mushy (about 5β7 minutes).
- Turn off the flame. Let this mixture cool completely.
2. Blend the Mixture:
- Remove the bay leaf and cinnamon stick (optional for smoother gravy).
- Transfer the mixture into a blender/mixer.
- Blend into a smooth, creamy paste without adding water. (Add 1β2 tablespoons of water only if needed.)
3. Make the Gravy:
- In the same pan, add 2 tablespoons butter.
- Pour the prepared onion-tomato-cashew paste.
- Stir and cook on low flame for 3β4 minutes.
4. Add Spices:
- Add red chili powder, turmeric powder, coriander powder, and salt.
- Mix well and cook for another 3β5 minutes until the butter starts separating from the masala.
Tip:
Keep stirring occasionally and cook on low heat so the gravy does not burn.
5. Add Water & Simmer:
- Add 1 cup water and mix well.
- Let the gravy simmer for 5β6 minutes on low flame until it thickens slightly.
6. Add Paneer and Finishing Touches:
- Add paneer cubes gently into the gravy.
- Crush kasuri methi between your palms and sprinkle into the curry.
- Add garam masala and sugar (optional but recommended for balance).
- Mix gently and simmer for 2β3 minutes only β do not overcook paneer or it will turn rubbery.
7. Add Cream:
- Turn off the heat.
- Add 3 tablespoons fresh cream.
- Mix gently. (Save a little cream for drizzling while serving if you want.)
πΏ Garnishing and Serving:
- Garnish with fresh coriander leaves and a drizzle of cream on top.
- Serve hot with:
- Naan
- Roti
- Jeera Rice
- Laccha Paratha
π‘ Tips for Best Paneer Butter Masala:
- Paneer Tip: If using store-bought paneer, soak it in warm water for 15β20 minutes to make it soft.
- Gravy Smoothness: Strain the blended gravy if you want extra silky, restaurant-style texture.
- Richness: You can add more cream or a teaspoon of honey for extra richness.
- Spice Level: Use Kashmiri red chili powder for bright color without too much heat.
π Paneer Butter Masala FAQ Sheet

β Can I use milk instead of cream?
β‘οΈ Yes! Use full-fat milk. For extra richness, add a spoon of milk powder.
β How to make it without onion and garlic?
β‘οΈ Skip them completely. Use extra tomatoes and cashews for a rich flavor.
β Why does my paneer turn rubbery?
β‘οΈ Overcooking! Add paneer at the end and simmer just 2β3 minutes.
β Can I freeze Paneer Butter Masala?
β‘οΈ Yes, freeze only the gravy. Add fresh paneer and cream when reheating.
β Difference between Paneer Butter Masala and Shahi Paneer?
β‘οΈ
- Paneer Butter Masala = tomato-based, slightly spicier.
- Shahi Paneer = creamier, sweeter, often without tomatoes.
β How to make it vegan?
β‘οΈ Use tofu instead of paneer and plant-based cream/butter.
β Best tomatoes to use?
β‘οΈ Ripe, red, juicy tomatoes like Roma or Indian desi tomatoes.
β Can I add vegetables?
β‘οΈ Yes! Peas, mushrooms, bell peppers, carrots β all go well.
β Is it very spicy?
β‘οΈ Mild to medium spicy. Adjust red chili powder to your taste.
β Homemade paneer or store-bought?
β‘οΈ Homemade is best β softer and fresher.
Store-bought should be soaked in warm water before use.
π§‘ Quick Tip:
For a super silky gravy, strain the tomato-cashew paste after blending!
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