Paneer Butter Masala is a luxurious North Indian vegetarian curry featuring tender paneer cubes cooked in a velvety, tomato-cashew based gravy enriched with butter, cream, and fragrant spices. This mildly spiced, slightly sweet dish pairs perfectly with naan, roti or jeera rice, making it a favorite in Indian cuisine. With my video and step-by-step guide you can easily make this most flavorful, tasty and restaurant style Paneer Butter Masala recipe at home!
Why This Paneer Butter Masala Is Loved By So Many
Paneer Butter Masala, also known as Butter Paneer is a rich and creamy North Indian dish made with Indian cottage cheese (paneer) simmered in a mildly spiced, buttery tomato and cashew sauce called makhani gravy.
Often seen as the vegetarian take on a classic makhani-style curry, Paneer Butter Masala offers the same creamy texture, spiced gravy, but with paneer. It is one of the most popular paneer dishes across India, and for good reason.
The smooth and velvety gravy strikes a perfect balance between the gentle acidity of tomatoes and the subtle sweetness of cream. The result? A nearly addictive sauce that clings beautifully to soft paneer cubes.
Table of Contents
- This recipe is based on the traditional makhani-style gravies that are loved across North India. During my cooking school days, I learned the fundamentals of making this rich, buttery tomato sauce – and over time, I’ve perfected a version that’s completely vegetarian and made from scratch.
It brings back memories of my early days experimenting in the kitchen, testing the balance of flavors until it felt just right. Even now, the aroma of simmering tomatoes and butter takes me right back – it’s a recipe that has stayed close to my heart over the years.
With my easy and delicious recipe, you can prepare this beloved dish at home without any fuss. It’s so simple, you can even make it on busy weeknights – just 20 minutes of prep and about 25 minutes on the stove.
This restaurant style Paneer Butter Masala recipe is one of the most popular on the blog and has been tried, tested, and loved by thousands of readers. Don’t just take my word for it – scroll down to the comments to see the amazing feedback from our readers and fans.hat Goes Into This Recipe – With Helpful Swaps
1. Tomatoes: Tomatoes form the base of the makhani sauce, so it’s important to use ripe, red, and slightly sweet tomatoes. If fresh ones aren’t in season, canned whole tomatoes are a great substitute; they’re picked at peak ripeness and often have better flavor than purée.
2. Cashews (or Substitutes): Cashews add creaminess and a subtle sweetness that balances the tang of tomatoes. If you’re allergic to nuts or don’t have cashews, soaked and peeled almonds are a good alternative. For a completely nut-free version, try my Paneer Makhani which uses cream only.
3. Cream: Fresh cream thickens the sauce and makes it rich. You can skip it for a lighter version, or use coconut cream as a vegan substitute; though note it will slightly alter the flavor.
4. Butter: A small amount of butter adds richness and that classic “buttery” taste without overpowering the dish. Stick to the recommended quantity to avoid heaviness. Vegan butter or neutral oil can be used for plant-based versions.
5. Paneer: Soft, fresh paneer makes all the difference. Homemade paneer is always best, but high-quality store-bought paneer also works well. If using store-bought, follow the prep instructions on the pack. For vegan alternatives, substitute extra firm tofu, tempeh, or seitan.
6. Spices & Herbs: The spice list is simple. Kashmiri red chili powder or deghi mirch gives the dish its signature orange-red color. Garam masala adds warmth, and kasuri methi (dried fenugreek leaves) brings depth (skip it if unavailable). Fresh coriander leaves make a great garnish. Note that whole spices (like cumin, cinnamon, cardamom etc) are not used in this recipe except for tej patta (Indian bay leaf).
If you love the creamy, mildly spiced, and restaurant-style flavors of Paneer Butter Masala, here are some other paneer recipes you might enjoy. These gravies are rich, flavorful, and perfect with naan, roti, or rice: