No ratings yet

Paneer butter masala is made with paneer cubes fried in butter along with a host of other aromatic spices, including tomato paste, to make a delicious masala gravy. The steps to make paneer butter masala at home are easy, as described in my recipe.

Table of Contents

KEY TAKEAWAYS

Paneer butter masala is one of the favorite vegetarian main courses in India.

Serve it with naan, roti, or steamed basmati rice.
Paneer butter masala tastes creamy, sweet, and mildly spiced.
Other similar recipes are shahi paneer, kadai paneer, and paneer tikka masala.

The Ingredients:

To fry the paneer:

200 grams paneer (cut into small cubes)

3 pieces butter cubes
¼ tsp turmeric powder
¼ tsp Kashmiri red chili powder

¼ tsp Kasuri Methi
Salt to taste

To make the tomato paste:

2 pieces tomatoes (medium size, cut roughly)
6 pieces green chilies
1 tsp Kashmiri red chili powder

To make the gravy:

2 tbsp cooking oil
1 piece bay leaf

1 piece cinnamon (1-inch stick)
1 pod black cardamom (whole)
3 pods green cardamom (whole)

1 tsp cumin seeds
2 tsp garlic (finely chopped)
2 pieces onions (medium size, finely chopped)

1 tsp ginger-garlic paste
½ tsp turmeric powder
1 tsp Kashmiri red chili powder

1 tsp salt
½ tsp coriander powder
½ tsp cumin powder

¼ tsp Kasuri Methi
12 pieces cashew nuts (broken into small pieces, soaked in hot water for at least half an hour and strained)
1 tsp garam masala powder

½ cup coriander leaves (finely chopped)
1 tsp fresh cream

This recipe came ideally from the milkman’s wife. He came late one morning and apologized. I asked the reason, and he said that that day was their anniversary and his wife wanted him to have a special dish for lunch. I smiled and was curious enough to ask for the recipe. He came with it the next day, written on a piece of paper.

I followed the recipe and made it that weekend. My husband found it special, and the boys called it “Doodh uncle’s treat.” Now, it is our weekend special meal. That moment reminded me how love travels in quiet ways—between early deliveries, clinking cans, and recipes folded in paper scraps filled with everyday sweetness.

How to Make Paneer Butter Masala? (Step by Step Guide with Images)

Step 1: Take 2 pieces of tomatoes (medium size, cut roughly) in a mixer and add 6 pieces of green chilies and 1 tsp of Kashmiri red chili powder to it. Blend them to a fine paste.

Step 2: Now, heat 2 tbsp of cooking oil in a wok or kadai and add 1 piece of bay leaf, 1 piece of cinnamon (1-inch stick), 1 pod of black cardamom (whole), 3 pods of green cardamom (whole), 1 tsp of cumin seeds, and 2 tsp of garlic (finely chopped) into it. Stir and fry them for about 30 seconds on a medium flame, but do not let the garlic turn brown. At this stage, add 2 pieces of onions (medium size, finely chopped) into it and fry them on a medium to high flame until they turn slightly golden brown.

Step 3: At this point, turn the flame to medium and add 1 tsp of ginger-garlic paste into it and fry for about 10 seconds.

Step 4: Now, add ½ tsp of turmeric powder and 1 tsp of Kashmiri red chili powder into it. Mix and cook for 10 seconds or so on a low flame.

Step 5: Then, add the tomato paste and 1 tsp of salt into it. Turn the flame to high and mix it nicely. Cook it until the oil starts to separate.

Step 6: Now, add ½ tsp of coriander powder, ½ tsp of cumin powder, and ¼ tsp of Kasuri Methi into it and mix them nicely. Cook for another 10 seconds on a low flame.

(Pro tip: At this point, the masala might stick to the kadai. Add a little bit of water to prevent it).

Step 7: Now, take 12 pieces of cashew nuts (broken into small pieces, soaked in hot water for at least half an hour, and strained) in a mixer, add a little bit of water, and make a smooth paste.

Step 8: Add the cashew paste to the masala. Mix it nicely on a high flame. Then, turn the flame to low now, cover it, and cook it for 4 to 5 minutes until the masala releases oil.

(Pro tip: Add about 2 tablespoons of water if the masala is too dry and sticky).

Step 9: Now, add 1 tsp of garam masala powder and a handful of finely chopped coriander leaves into it and mix everything nicely. Cook for another minute or so on a low flame. Switch off the gas stove when done.

Step 10: Now, heat a separate pan on a medium flame and melt 3 pieces of butter cubes and add 200 grams of paneer (cut into small cubes), ¼ tsp of turmeric powder, ¼ tsp of Kashmiri red chili powder, ¼ tsp of Kasuri Methi, and salt to taste. Mix everything nicely. Cook it for about 2 to 3 minutes on a medium to high flame until the moisture from the paneer cubes is gone.

Step 11: Now, put these fried paneer cubes in the gravy. Switch on the gas stove to low and mix them nicely to coat the masala on all paneer pieces. Finally, add a handful of finely chopped coriander leaves and 1 tsp of fresh cream into it. Mix them all nicely, and it is done.

Step 12: Your tasty and spicy homemade paneer butter masala is ready to serve. Transfer it onto a plate, garnish it with some more fresh cream and a few chopped coriander leaves, and enjoy it with roti or naan.