Paneer Butter Masala Recipe (Paneer Makhani) (2024)

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Home Cooking Collective

The gourmet's act of self-care: Comforting, from-scratch flavor-packed food

Home > Recipes > Cuisine > Indian

by Karishma

This creamy cashew-based butter paneer masala recipe is a delicious take on the restaurant classic.

Jump to Recipe3 Comments

Paneer Butter Masala Recipe (Paneer Makhani) (2)

This paneer butter masala recipe (or paneer makhani) is my take on the Indian classic, featuring soft paneer coated in a creamy tomato-based sauce with a hint of spice. It's warm and cozy without feeling too heavy. A garnish of red onion, cilantro, and lemon juice helps balance the whole dish.

Paneer Butter Masala Recipe (Paneer Makhani) (3)

Most recipes for paneer butter masala are developed to mimic the Indian restaurant dish perfectly. This is not one of them. Don't get me wrong, I enjoy the restaurant version, and I'll order takeout when I'm craving that flavor.

But I don't always want a lot of butter and cream; in my variation, there's a bit more boldness in the flavor and tanginess of the tomato. The resulting paneer dish is rich, comforting, slightly punchy from the spice, and perfect with some garlic naan, hot parathas, orchapatison the side.

Table of ContentsHide

  • Why You'll Love This Recipe
  • Ingredient Notes
  • How to Make Paneer Butter Masala
  • Expert Tips
  • Storage Instructions
  • Recipe FAQs
  • Other recipes you might like:
  • Jump to Recipe Instructions

Why You'll Love This Recipe

  • It's tasty and comforting. With lots of warming spices and a bit of sweetness, the makhani sauce is like a warm hug in a bowl!
  • It's easy. This recipe requires fewer steps than other versions, meaning you're one step closer to a delicious dinner!
  • It's nourishing without feeling heavy.You still get a creamy sauce, but a lot of the creaminess comes from using cashews and just a pat of butter or two.

For more Indian dishes, try my Punjabi-inspired kadhi pakora, masoor dal tadka, or masala chai.

Ingredient Notes

Paneer Butter Masala Recipe (Paneer Makhani) (4)

Spices: This recipe uses a mix of whole spices and ground spices, most of which can be found in a standard supermarket. Fenugreek leaves, or kasuri methi, provide a maple-syrupy, earthy, nutty flavor to the butter paneer masala.

It’s a defining flavor in the dish. You can find them in an Indian grocery store or online, but you can sub in a pinch of ground fenugreek if you don’t have the leaves. Want to learn more? Check out my guide to essential Indian spices.

Paneer: You can use store-bought or homemade paneer. If using store-bought, you will need to soak it in hot water for 15 - 20 minutes to help soften it.

Aromatics: Ginger-garlic paste is a typical ingredient used in Indian cooking, but I find it's easiest to simply grate the ginger and garlic into a paste with a microplane. If you have the paste, you can use ½ the amount instead!

Cashews: Make sure to use unsalted, raw cashews.

Ripe Tomatoes: It sounds odd, but fresh tomatoes, even in the dead of winter, provide the necessary consistency for this masala, so don't use a canned product! Ripe plum or Roma tomatoes are ideal, because they are less watery than other varieties. Do not use smaller cherry or grape tomatoes.

For a full list of ingredients and quantities, refer to the recipe card.

🍳 Equipment Note 🍳

I recommend using a high-powered blender to ensure the sauce is as creamy and smooth as possible. An immersion blender won't cut it here. If you don’t have one, you can sub the raw cashews for 1 - 2 tablespoons of cashew butter. Add the cashew butter directly to the blender instead of sauteeing it with the aromatics.

Vegan Variation

The recipe can be completely vegan if you sub butter for vegan butter and firm tofu for the paneer. I recommend frying the tofu first, then simmering it in the sauce for the last couple of minutes.

How to Make Paneer Butter Masala

Step 1 - Soak the paneer and cashews in hot water for 15 minutes. Drain and set aside.

Paneer Butter Masala Recipe (Paneer Makhani) (5)

Step 2 - Over medium heat, add the oil, bay leaf, cardamom pods, and cinnamon stick until sizzling. Saute the onions until softened and golden brown, and the raw smell dissipates.

Paneer Butter Masala Recipe (Paneer Makhani) (6)

Step 3 - Add the garlic, ginger, and green chili and saute for 30 seconds until aromatic. Stir in the drained cashews and tomatoes. Simmer for 8 - 10 minutes until the tomatoes have broken down and released their juices.

Tip: This is a dish where you really want to get some color on these onions. It adds a lot of flavor!

Paneer Butter Masala Recipe (Paneer Makhani) (7)

Step 4 - Add the garam masala and water, and simmer for 5 minutes until the sauce thickens slightly.

Paneer Butter Masala Recipe (Paneer Makhani) (8)

Step 5 - Discard the whole spices, then transfer the mixture to a stand blender. Remove the center cap of the blender's lid and place a clean dish towel over the opening (this step helps steam escape from the warm tomato sauce). Puree the mixture until completely smooth.

Paneer Butter Masala Recipe (Paneer Makhani) (9)

Step 6 - Wipe the skillet clean, then melt a bit of unsalted butter over medium heat. Stir in the red chili powder, add the tomato puree, and simmer for about 5 minutes to meld the flavors. Crush the fenugreek with your hands and stir it into the sauce, along with the heavy cream (if using), and the paneer cubes.

Paneer Butter Masala Recipe (Paneer Makhani) (10)

Step 7 - Simmer the paneer for 2 - 3 minutes until softened and cooked through, then top with cilantro, red onion, and a squeeze of lemon juice. Serve immediately, and enjoy!

Expert Tips

  • If your sauce feels too watery, you can simmer it for an additional 10 - 15 minutes to help thicken the mixture. Alternatively, if it's too thick, you can add a bit more water to loosen it up.
  • Make sure to check your spices before following this recipe. If your spices emit a strong fragrance, they're likely fresh. If they seem older or more stale, you may need to purchase new spices or add more spices to achieve the same flavor. Otherwise, this recipe might not taste as flavorful.
  • Prefer a chewier texture? Fry your paneer in oil until golden-brown, then simmer with the sauce just before serving.

Storage Instructions

Paneer Butter Masala Recipe (Paneer Makhani) (11)

Leftover paneer butter masala can be stored in the fridge for 2 - 3 days. The sauce tends to thicken after sitting in the refrigerator. Reheat in the microwave until warmed through, adding water as needed to thin out the sauce.

Recipe FAQs

What does paneer taste like?

Paneer has a clean, milky, and mild flavor with a soft texture.

Can I make butter chicken with this recipe?

Absolutely! You can definitely sub the paneer for chicken.

Is paneer butter masala spicy?

Paneer butter masala has a mild spiciness, but you can always add more or less chili powder depending on your preference!

What's the difference between butter paneer, paneer butter masala, and paneer makhani?

There is no difference! In Indian cuisine, there are many different names for the same dish.

Other recipes you might like:

  • Mushroom Biryani Recipe (Step-by-Step Stovetop Instructions)
  • Spicy Watermelon Jalapeño Salad with Charred Corn
  • Easy Paneer Bhurji Sandwich (30-Minute Recipe)
  • Peas Pulao with Fried Onions

Did you try this recipe? I would love to hear your feedback! Be sure to rate the recipe and leave a comment below.

Paneer Butter Masala Recipe (Paneer Makhani) (16)

For even more cozy recipes, be sure to subscribe to my newsletter.

Happy eating! Love, Karishma

Note: This recipe was updated with step-by-step photos and clearer instructions on 1/5/2023.

Print RecipeSHOP INGREDIENTS

Paneer Butter Masala

This creamy cashew-based butter paneer masala recipe is a delicious take on the restaurant classic.

Yields: 4 servings

Author: Karishma Pradhan

Prep Time 20 minutes minutes

Cook Time 45 minutes minutes

Total Time 1 hour hour 5 minutes minutes

Equipment

Ingredients

  • 8 ounces paneer, store-bought or homemade
  • 12 unsalted raw cashews
  • 2 tablespoons neutral oil, such as canola
  • 2 whole cardamom pods
  • ½ cinnamon stick
  • 1 bay leaf
  • 1 large red onion, thinly sliced
  • Salt
  • ½ tablespoon grated garlic
  • ½ tablespoon grated ginger
  • ½ serrano chili, roughly chopped
  • 1 pound ripe tomatoes, preferably roma or plum tomatoes
  • 1 teaspoon garam masala
  • 1 cup water, plus more if needed
  • 2 tablespoons unsalted butter
  • ½ teaspoon mild red chili powder, like Kashmiri chili powder | or ÂĽ teaspoon paprika and ÂĽ teaspoon cayenne powder
  • 1 teaspoon fenugreek leaves, also known as kasoori methi
  • 2 tablespoons heavy cream, optional
  • 1 teaspoon maple syrup, optional
  • A handful of chopped red onion, minced cilantro, and lemon wedges, for serving

Instructions

  • Prep the paneer and cashews: Store-bought paneer is often dense, so I recommend softening it through the following step. Cut paneer into 1-inch cubes, then soak in a bowl of hot water for 15 minutes. Drain the paneer and set aside.

    Meanwhile, soften the cashews. Soak the cashews in a small bowl of hot water for 15 minutes. Drain and set aside.

    8 ounces paneer, 12 unsalted raw cashews

  • Bloom the spices: Add oil to a medium saute pan set over medium heat. Add the cardamom, cinnamon, and bay leaves and saute until aromatic and sizzling, about 30 seconds.

    2 tablespoons neutral oil, 2 whole cardamom pods, ½ cinnamon stick, 1 bay leaf

  • Saute the onion: Saute the onion over medium heat for 7 - 8 minutes until the moisture has evaporated and the onions are golden brown at the edges. Season with salt.

    Note: This is a recipe where you really want to get some color on these onions. It adds a lot of flavor.

    1 large red onion, Salt

  • Reduce the heat to low, and add the garlic, ginger, and chili. Saute for 30 seconds until fragrant.

    ½ tablespoon grated garlic, ½ tablespoon grated ginger, ½ serrano chili

  • Saute the tomatoes and cashews: Add the tomatoes and drained cashews, and saute for 8 - 10 minutes over medium heat until the tomatoes begin to break down and release their juices into a thickened sauce.

    1 pound ripe tomatoes

  • Simmer the sauce: Add the garam masala and 1 cup water, and saute for another 5 minutes until the sauce reduces slightly. Season with salt.

    1 teaspoon garam masala, 1 cup water

  • Blend the sauce: Remove and discard the cardamom, cinnamon, and bay leaves from the sauce.

    Transfer the sauce to a stand blender. Remove the center cap and place a towel over the opening. Puree mixture until completely smooth. If your puree is not perfectly smooth, you can push it through a fine mesh sieve.

    Note:Use caution with hot liquids in a stand blender. Initiate the blending process at a low speed, slowly increasing the speed in stages to prevent splashing and to ensure a consistent puree.

  • Wipe the saute pan clean, then heat the butter over medium heat until melted.

    2 tablespoons unsalted butter

  • Simmer the sauce: Add the chili powder, and stir to combine, then mix in the tomato puree. Bring the mixture to a simmer. Simmer for about 5 minutes to allow the sauce to meld with the butter. If the sauce is looking too thick, you can add more water as desired.

    ½ teaspoon mild red chili powder

  • Finish seasoning: Crush the fenugreek leaves in your hand and add to the pan. If adding in the cream, reduce the heat to low and stir it in. Season with salt, and taste the sauce, adding more spices if desired. If it needs a bit of sweetness, you can add the maple syrup.

    1 teaspoon fenugreek leaves, 2 tablespoons heavy cream, 1 teaspoon maple syrup

  • Cook the paneer: Add the paneer and reduce the heat to a low simmer. Simmer for about 2 - 3 minutes, until the paneer is cooked through.

  • Serve: Garnish with cilantro and red onion, and serve with lemon wedges.

    A handful of chopped red onion, minced cilantro, and lemon wedges

Notes

* A high powered blender is recommended to ensure the sauce is as creamy and smooth as possible.If you don’t have one, I recommend subbing the raw cashews for 1 - 2 tablespoons cashew butter. Add the cashew butter directly to the blender instead of sauteeing it with the aromatics.

Tips:

  1. If your sauce feels too watery, you can simmer it for an additional 10 - 15 minutes to help thicken the mixture. Alternatively, if it's too thick, you can add a bit more water to loosen it up.
  2. Make sure to check your spices before following this recipe. If your spices emit a strong fragrance, they're likely fresh. If they seem older or more stale, you may need to purchase new spices or add more spices to achieve the same flavor. Otherwise, this recipe might not taste as flavorful.

Storage: Leftover paneer butter masala can be stored in the fridge for 2 - 3 days. The sauce tends to thicken after sitting in the refrigerator. Reheat in the microwave until warmed through, adding water as needed to thin out the sauce.

Nutrition

Calories: 372kcal | Carbohydrates: 13g | Protein: 11g | Fat: 32g | Saturated Fat: 15g | Polyunsaturated Fat: 3g | Monounsaturated Fat: 8g | Trans Fat: 0.3g | Cholesterol: 61mg | Sodium: 77mg | Potassium: 396mg | Fiber: 3g | Sugar: 5g | Vitamin A: 1382IU | Vitamin C: 20mg | Calcium: 314mg | Iron: 1mg

The nutritional information on this website is only an estimate and is provided for convenience and as a courtesy only. The accuracy of the nutritional information for any recipe on this site is not guaranteed.

Paneer Butter Masala Recipe (Paneer Makhani) (17)

Welcome! I'm Karishma.

I founded the Home Cooking Collective, which offers a diverse collection of cozy, flavorful, small-batch recipes made from scratch. Let's cook together!

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Reader Interactions

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  1. Amanda

    Paneer Butter Masala Recipe (Paneer Makhani) (18)
    A big fan of this recipe. I've made it a few times and have been really happy with the results. I do have a question though: before you blend everything together, do you find and remove the whole spices (cardamon pods, cinnamon, bay leaf), or do you leave it in? Thanks!

    Reply

    • Karishma

      Hi Amanda,

      So happy you're enjoying the recipe! Thanks for that call-out; I just added a note in the recipe to fix this oversight, but yes, you'll want to remove the whole spices before blending.

      Best,
      Karishma

      Reply

  2. Priyanka

    Paneer Butter Masala Recipe (Paneer Makhani) (19)
    The instructions were easy to follow and the butter paneer was delicious! Better than what I've had in restaurants. Thanks for a wonderful recipe Karishma!

    Reply

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