🍛 Introduction
Paneer Butter Masala – just the name makes our mouth water!
It’s rich, creamy, flavorful, and one of the most loved Indian vegetarian dishes. Whether you’re cooking for guests, preparing for a special dinner, or simply craving something indulgent, this restaurant-style paneer butter masala recipe is all you need.
Let’s dive into this delightful recipe that tastes better than any restaurant version – and yes, it’s easier than you think!
🧀 What is Paneer Butter Masala?
Paneer Butter Masala (also called “Butter Paneer”) is a classic North Indian dish where paneer cubes (Indian cottage cheese) are simmered in a smooth, creamy, tomato-based gravy with butter, cream, and aromatic spices. It has a mild sweetness, rich texture, and goes perfectly with naan, paratha, or rice.

📝 Ingredients You’ll Need
Here’s a list of all ingredients for making restaurant-style paneer butter masala at home:
🔸 For the Gravy Base:
- 4 medium tomatoes (roughly chopped)
- 1 medium onion (optional, for slight depth)
- 1-inch piece of ginger
- 4–5 garlic cloves
- 2 tablespoons cashew nuts
- 1–2 green chilies (optional)
- 2 tablespoons butter
- 1 tablespoon oil
🔸 For the Paneer Curry:
- 200–250g paneer (cubed)
- 1 teaspoon Kashmiri red chili powder
- ½ teaspoon turmeric
- 1 teaspoon coriander powder
- Salt to taste
- ½ teaspoon garam masala
- 1 teaspoon kasuri methi (dry fenugreek leaves)
- 3 tablespoons fresh cream
- Fresh coriander leaves (for garnish)
- 1 teaspoon sugar (optional, to balance taste)
- Extra butter (1 tbsp) for finishing
🔥 Step-by-Step Recipe
Step 1: Prepare the Tomato-Cashew Base
- Heat 1 tbsp oil + 1 tbsp butter in a pan.
- Add chopped tomatoes, onion, garlic, ginger, green chili, and cashews.
- Sauté everything for 6–8 minutes till tomatoes soften and raw smell disappears.
- Cool the mixture slightly and blend it into a smooth paste using little water.
Step 2: Cook the Gravy
- In the same pan, heat 1 tbsp butter.
- Add the tomato-cashew paste and cook for 6–7 minutes on medium flame.
- Add red chili powder, turmeric, coriander powder, and salt.
- Mix and cook until the masala thickens and releases oil from sides.

Step 3: Add Paneer and Finish the Dish
- Add ½ cup water (adjust consistency).
- Add paneer cubes and gently mix. Simmer for 4–5 minutes.
- Add cream, kasuri methi (crushed), sugar, and garam masala.
- Stir gently and cook for 2–3 more minutes on low heat.
- Add a final dollop of butter on top and garnish with fresh coriander.
🍽️ Serving Suggestions
- Best With: Butter naan, garlic naan, plain paratha, jeera rice, steamed basmati rice
- Side Pairing: Cucumber raita, salad, papad
- Drink Pairing: Sweet lassi, mango lassi, masala soda
✅ Tips for Perfect Restaurant-Style Taste
- Use Kashmiri chili powder for rich red color without extreme heat.
- Cashews make the gravy creamy; don’t skip!
- Always sauté masala till it releases oil – that’s the flavor key.
- For extra richness, add a spoon of honey instead of sugar.
- Soak paneer in warm water before adding to curry for soft texture.
- READ MORE:
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- Mixed Vegetable Curry South Indian Style: A Flavorful and Nutritious Best Recipe 2025
🍳 Variations You Can Try
- Jain Version: Skip onion & garlic completely.
- Vegan Version: Use tofu instead of paneer, coconut cream instead of dairy.
- Spicy Version: Add green chilies + crushed black pepper for heat.
🛒 Storage & Reheating
- Store in the fridge for 2–3 days in an airtight container.
- Reheat on low flame; add a little milk or water to adjust consistency.
- Avoid microwaving directly – paneer becomes chewy.
❓ FAQ – Frequently Asked Questions
Q1. Can I make this recipe without cream?
Yes! Use full-fat milk or cashew paste for similar richness.
Q2. Is this recipe healthy?
It’s rich, so consume in moderation. You can reduce butter/cream for a lighter version.
Q3. Can I use store-bought paneer?
Absolutely. Just soak it in hot water for 5 mins before cooking for softness.