Paneer Butter Masala Recipe

Paneer Butter masala recipe - soft succulent cottage cheese cubes in a creamy tomato based gravy.

Preparation time - 10 min
Cook time - 30 min
Total time - 40 min

Ingredients (measuring cup used, 1 cup = 250 ml)

• 200 or 250 gm paneer/cottage cheese, cubed or diced
• 2 tbsp cashew or 18 to 20 cashews- soaked if you have time and then ground with some water to a smooth paste. if less time, then just grind the cashews to a smooth paste.
• 4-5 medium size tomatoes/tamatar or 300 grams or 2 cups of diced tomatoes - pureed
• 1 or 2 green chili/hari mirch, slit (reserve a few for garnishing)
• 1 inch ginger/adrak and 3-4 garlic/lahsun - crushed or ground in a mortar & pestle
• 1 inch ginger/adrak - julienned (reserve a few for garnishing)
• 1 tej patta/indian bay leaf
• 1 tsp kasuri methi/dry methi leaves
• 1 tsp garam masala or tandoori masala
• ½ tsp red chili powder/lal mirch powder or deghi mirch or kashmiri mirch powder
• 1 tbsp oil + 1 or 2 tbsp butter
• 1.5 cups water
• a few coriander/cilantro/dhania leaves for garnishing (optional)
• salt and sugar as required - check notes below for adding sugar

How to make the recipe:

1. heat oil and butter in a pan. add bay leaf and saute for some 10-15 seconds or till the oil become fragrant.
2. add ginger-garlic paste and saute till the raw aroma disappears.
3. add the tomato puree and stir well. add red chili powder after 2-3 mins and stir again. saute till the oil starts to leave the sides of the tomato paste.
4. add cashew paste and stir well. saute the cashew paste till the oil begins to leave the sides of the masala paste.
5. add water and stir. simmer on a low flame.
6. add julienned ginger and green chilies, salt and sugar and simmer till the curry begins to thicken.
7. add the paneer cubes and cook them for 2 to 3 minutes till they become soft.
8. don't cook for a long time as the paneer will become dense.
9. lastly add crushed kasuri methi/dry fenugreek leaves & garam masala. stir.
10. garnish paneer butter masala with coriander leaves. serve paneer butter masala hot with plain naan, garlic naan, rotis or steamed basmati or jeera rice. side accompaniments can be onion-lemon salad or some pickle.

Notes: tips for making paneer butter masala recipe:

How to make paneer butter masala recipe:

1. Soak 18 to 20 cashews in a hot water for 20 to 30 minutes. when the cashews are soaking, you can prep the other ingredients like chopping tomatoes, preparing ginger-garlic paste, slicing paneer etc.

2. Then drain and add the soaked cashews in a blender or grinder.

3. Add 2 to 3 tbsp water and grind to a smooth paste without any tiny bits or pieces of cashews.

4. Remove the cashew paste in a bowl and keep aside.

5. In the same blender add 2 cups of diced or roughly chopped tomatoes. no need to blanch the tomatoes before blending.

6. Blend to a smooth tomato puree. keep aside. don’t add any water while blending the tomatoes.

7. Add 1 tbsp oil and 1 or 2 tbsp butter in a pan. adding oil prevents the butter from browning too quickly.

8. Add tej patta and fry for some seconds till the oil becomes fragrant.

9. Add ginger-garlic paste or crushed ginger-garlic (1 inch ginger + 3-4 garlic crushed to a paste in a mortar pestle). fry till the raw aroma of the ginger-garlic disappears.

10. Pour the tomato puree.

11. When the puree begins to cook, after 5 to 6 minutes, add ½ tsp red chili powder.

12. Stir and continue to saute till the oil starts leaving the sides of the pan. the whole sauteing takes about 12-13 minutes on a low flame.

13. Add the cashew paste.

14. Saute till the cashew paste is cooked and again the oil will start to leave the sides of the masala. the cashew will begin to cook fast. approx 3-4 minutes on a low flame. keep on stirring.

15. Add 1.5 cups water.

16. Let the curry simmer and come to a boil. after 2-3 min, add ginger julienne (about 1 inch ginger – julienne). reserve a few for garnishing. the curry will begin to thicken.

17. After 3 to 4 minutes, add the 1 or 2 slit green chilies, salt and sugar (optional) and stir. you can add sugar from ¼ tsp to 1 tsp depending on the sourness of the tomatoes. sugar is optional and you can skip it too. if you add cream, then you will need to add less sugar.

18. After a minute, add the diced or cubed paneer (200 or 250 grams). keep in mind the consistency you want before you add paneer as you will be cooking the paneer for a few minutes. you can also fry the paneer and then add the paneer once the gravy has become creamy. 

16. Let the curry simmer and come to a boil. after 2-3 min, add ginger julienne (about 1 inch ginger – julienne). reserve a few for garnishing. the curry will begin to thicken.

20. Stir and serve paneer butter masala hot garnished with 1 to 2 tbsp of chopped coriander leaves, the remaining ginger julienne and dotted with butter or cream. good combo for paneer butter masala is garlic naan or butter naan.


Paneer Butter Masala also goes well with steamed basmati rice or jeera rice.

I served with whole wheat rotis accompanied with onion-lemon salad and pickled carrot-beetroot from the kanji drink.

1. Addition of sugar depends upon your taste as well as the tanginess present in the tomatoes. if you add cream in the recipe then you might have to add less sugar.

2. For this recipe, its best to use fresh, ripe red tomatoes.

3. Best to use homemade soft paneer.

4. The amount of cream can be adjusted as per your taste.