Learn how to make restaurant-style paneer butter masala at home with this easy and delicious family-friendly vegetarian Indian recipe.
Restaurant-style paneer butter masala
There are several ways to make paneer butter masala, both at home and in restaurants. Some people swear by only using butter, and adding no other dairy, save for the cheese. For others, it would not be complete without a hefty dose of cream. Still others use milk instead. This makes for a lighter, yet no less delicious meal. In fact, that's exactly how my friend, Usha, owner and chef at the Taj Mahal in Fort Kochi, taught me to make paneer butter masala. The recipe below is my version of Usha's restaurant one. In saying that, actually, the only change I've made is to use cream instead of milk, and vegetable oil instead of palm. If you're looking for Indian restaurant-style paneer butter masala, then look no further!Step by step instructions follow, with full instructions and ingredient quantities in the recipe card at the end of this post.
Ingredients
- Paneer - home-made is creamier and softer, IMO, but store-bought is fine.
- Onion - either a brown or red one is fine.
- Ginger root - if it's really fresh, there's no need to peel it. If it's a bit woody, it's best to get rid of the peel.
- Garlic - if yours is quite intense, you may want to use fewer cloves. You certainly don't want to be able to taste garlic in this!
- Tomatoes - by medium tomatoes, I mean the ones that are sometimes labelled as 'salad' tomatoes.
- Oil - I use vegetable or sunflower oil as a rule. They are both light and neutral-tasting. You don't want anything that's going to add its own flavour to this dish.
- Indian bay leaf - called tej patta in Hindi. This is not the same as Mediterranean bay, either in flavour or appearance.
- Finger chilli - these are long, slender chillies, and reasonably mild in flavour. They're usually used in cooking while still green.
- Turmeric - as well as flavour, it adds to the beautiful colour of this dish.
- Kashmiri chilli - a mild chilli powder with a good flavour. Together with turmeric, it's responsible for the red-orange colour of paneer butter masala.
- Cashew cream - If you've read my post on the subject, you'll know that it's pretty much an essential 'secret weapon' of many an Indian cook!
- Sugar - the regular white granulated stuff.
- Ground coriander - one of the most-used, and most important, spices in the Indian kitchen.
- Garam masala - don't go overboard with this. Too much will make the food bitter.
- Double cream - known as heavy cream in the US.
- Dried fenugreek leaves - called kasuri methi in Hindi.
- Butter - use unsalted if possible, as it's creamier than the salted kind.
- Salt - to taste.
- Fresh coriander leaves - called cilantro in the US and Spanish-speaking parts of the world.
How to make paneer butter masala
Cut the paneer into cubes, dry-fry until golden-brown, then set aside.
Purée the onion, garlic, and ginger, and then do the same with the tomatoes. Set both aside for now. 
Next, sputter the Indian bay leaf and finger chilli in some oil for a few seconds to release their aromatic oils. 
Add the puréed onion, garlic, and ginger to the pan, and stir-fry for 5 minutes or so, until it no longer smells raw. 
Stir in some ground turmeric, then fry off for half a minute before adding Kashmiri chilli powder and cashew cream. Continue to fry for a couple of minutes, then stir in the puréed tomatoes and a little sugar. Reduce the heat to low, and cook for a few minutes, until the oil begins to rise to the top of the gravy. Next, add the ground coriander and garam masala, stir well, and again, let the spices cook in for a couple of minutes. At this point, you can remove and discard the bay leaf and finger chilli. (If you want the gravy to be super-smooth, now is the time to use an immersion blender. However, it's entirely optional.) Stir in the cream, and leave the gravy to cook for another 4 minutes or so. Again, the oil will rise to the surface. Now add the paneer cubes and the fenugreek leaves. Stir them in well, turn the heat down as low as it'll go, and simmer for around 5 minutes to allow the cheese to heat through. Once the paneer masala is ready, remove from the heat, and stir in the butter. Taste, and season with salt if necessary. All that remains is to decant into bowls, and garnish with a few torn coriander leaves and a little more cream.
This recipe was originally published in 2013, and has now been refined and updated.
Continue to fry for a couple of minutes, then stir in the puréed tomatoes and a little sugar. 
Reduce the heat to low, and cook for a few minutes, until the oil begins to rise to the top of the gravy. 
Next, add the ground coriander and garam masala, stir well, and again, let the spices cook in for a couple of minutes. 
At this point, you can remove and discard the bay leaf and finger chilli. (If you want the gravy to be super-smooth, now is the time to use an immersion blender. However, it's entirely optional.) Stir in the cream, and leave the gravy to cook for another 4 minutes or so. Again, the oil will rise to the surface. 
Now add the paneer cubes and the fenugreek leaves. Stir them in well, turn the heat down as low as it'll go, and simmer for around 5 minutes to allow the cheese to heat through. 
Once the paneer masala is ready, remove from the heat, and stir in the butter. Taste, and season with salt if necessary. 
All that remains is to decant into bowls, and garnish with a few torn coriander leaves and a little more cream.
To make this vegan
Substitute extra-firm tofu for the paneer, and your favourite plant-based cream and butter. Or you could use a creamy plant-based milk, such as cashew, oat, or soy instead of the cream. Coconut milk and cream also work but they do of course give the dish a coconut flavour, which while delicious, isn't going to taste like authentic paneer butter masala. If you're not bothered by this, then do go ahead and use them!Other substitutions
Fresh tomatoes: if you prefer, you could use a 200g (7 oz) can of chopped tomatoes instead. There'll be no need to purée them, of course. Don't scrimp on the ones you use though. Cheap canned tomatoes can be very acidic, and sometimes even metallic-tasting. Too much acidity will throw out the flavour balance of the dish, so it really is worth paying a little extra for decent canned tomatoes. (And this applies to any dishes you use them in.) Finger chilli: if you can't get this, sub with your favourite mild-ish chilli. Don't be tempted to use a fiery one - you'll just ruin the dish. It's supposed to be very mild, not macho! Cashew cream: if you don't happen to have a wee pot of it handy in the 'fridge, and only only want to make enough for this recipe, then boil 15 cashews in water for 10 minutes. Drain, then blend until smooth with around two tablespoons of hot water. You'll have a bit more than the two tablespoons that the recipe lists but it's fine to use it all. Indian bay and dried fenugreek leaves: if you don't have these, don't try to substitute. Just leave them out of the recipe.
Where was paneer butter masala invented?
Like murgh makhani, paneer butter masala came out of the kitchens of the Moti Mahal restaurant in Delhi in the 1950s. In fact, this dish is also known as paneer makhani. Makhan is the Hindi word for 'butter', and makhani means 'buttery'. Another popular dish from the Moti Mahal is dal makhani, or 'butter lentils'. As with the famous chicken dish, the concept was simply a case of adding butter to a mildly spicy tomato-based gravy. The rest, as they say, is history.What is paneer?
Paneer is a fresh cheese that's sometimes called cottage cheese in India. However, unlike Western cottage cheese, paneer is pressed to form a block. It can be very easily made at home by heating milk, and then curdling it with lemon juice. After that, all you have to do is drain and press the curds. It has a mild and creamy flavour, with a soft texture. This makes it ideal for taking on the flavours of gravies and sauces. For example, in malai kofta or palak paneer. If you don't fancy making paneer at home, you can buy it from most large supermarkets. If you have any Indian or generically South Asian shop nearby, they'll more than likely stock it. Failing that, Middle Eastern and Turkish shops usually sell it, where it'll be called peynir. Do be aware though that commercially-made paneer, while good, is nevertheless firmer and drier, and not as creamy than the cheese you make at home. It is however, more convenient!Serving
Paneer butter masala is a perfect balance of mild spiciness and creaminess. No wonder it's been one of the top 5 restaurant dishes in both India and Britain for over half a century! Why not have it with naan or rice, or starchy curry dishes, such as aloo masala and dal fry? Or just serve it simply with some chapatis. Enjoy!
📖 Recipe
Paneer Butter Masala
My family-friendly paneer butter masala is a perfect balance of spiciness and creaminess, and works really well with Indian breads or rice, and starchy dishes, such as aloo masala and dal fry.
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Makes (slide to adjust): 4 servings
Calories: 826kcal
Ingredients
- 350 g paneer (either home-made or shop-bought)
- 1 onion (c. 100g / 3½oz) , roughly-chopped
- 2.5 cm piece of ginger root , roughly chopped
- 4 cloves garlic , peeled and roughly chopped
- 5 medium-sized tomatoes , roughly chopped
- 3 tablespoons vegetable oil
- 1 Indian bay leaf (tej patta)
- 1 green finger chilli , split lengthways
- ½ teaspoon turmeric
- 1 teaspoon Kashmiri chilli powder
- 2 tablespoons cashew cream (or 15 cashews - see notes in post)
- 1 teaspoon sugar
- 1 tablespoon ground coriander
- 1 teaspoon garam masala
- 125 ml double cream (heavy cream)
- 1 teaspoon kasuri methi (dried fenugreek leaves)
- 30 g unsalted butter
- Salt , to taste
To Serve
- Fresh coriander leaves , chopped
- Cream , to drizzle (optional)
Equipment
- food processor
- blender
- wok
- kadai
Instructions
Dry-fry the paneer
- Cut 350g of paneer into cubes, and fry in a skillet over a medium heat with no additional fat, until golden brown. Remove from the pan, and set aside.
Purée the vegetables and aromatics
- While the paneer is browning, blitz 1 large chopped onion, a 2,5cm (1") piece of ginger, and 4 large cloves of garlic in a food processor or a blender for couple of minutes, until you have a thick paste. (Add a little of the oil if you're having difficulty blending.)Remove from the processor / blender, and set aside.
- Add 5 medium chopped tomatoes to the processor or blender, and blitz for a few seconds, until you have a coarse purée. Set aside.
Make the gravy
- Heat 3 tablespoons of oil in a karahi (or wok, or large skillet), add 1 Indian bay leaf and 1 split green finger chilli. Fry over a medium heat for 1 minute.
- Add the onion, garlic, and ginger paste, and fry - stirring all the time - until the raw smell has gone. This should take around 5 minutes.
- Add ½ teaspoon of turmeric, stir well, and fry for another 30 seconds or so.
- Add 1 teaspoon of Kashmiri chilli powder and 2 tablespoons of cashew cream, and continue to fry, stirring occasionally for another 2 minutes.
- Add the puréed tomatoes and 1 teaspoon of sugar, mix well, reduce the heat to medium-low, and continue to cook until the oil starts to separate out. Around 3 minutes.
- Mix in 1 tablespoon of ground coriander and 1 teaspoon of garam masala, and allow to cook in for another 2 minutes or so.Remove the Indian bay leaf and the finger chilli (discard or compost them). At this point, you can use an immersion blender to make the gravy smoother if you want.
- Add 125ml (½ cup) of cream, mix well, and leave to cook for another 4 minutes, until oil rises to the surface of the gravy.
Assembly
- Add the fried paneer cubes and 1 teaspoon of fenugreek leaves. Stir well, reduce the heat to its lowest setting, and simmer for 5 minutes to heat the cheese.(In order to get the most flavour from the fenugreek leaves, rub them between your palms as you add them to the gravy. This releases their aromatic oils.)
Finishing
- Turn off the heat, taste, stir in 2 tablespoons of butter, and then season with salt if necessary.
Serving
- Place into a serving dish, and sprinkle a few chopped coriander leaves over the top, and if desired, a swirl of cream.
Notes
- If you don't have Indian bay, leave it out, do not sub Mediterranean bay - it's a completely different beast, and will not work in this recipe!
This recipe was originally published in 2013, and has now been refined and updated.
Nutrition Facts
Paneer Butter Masala
Amount Per Serving
Calories 826
Calories from Fat 648
% Daily Value*
Fat 72g111%
Saturated Fat 38g190%
Polyunsaturated Fat 8g
Monounsaturated Fat 13g
Cholesterol 108mg36%
Sodium 205mg9%
Potassium 678mg19%
Carbohydrates 18g6%
Fiber 5g20%
Sugar 12g13%
Protein 27g54%
Vitamin A 454.5IU9%
Vitamin C 60.2mg73%
Calcium 718.7mg72%
Iron 2.2mg12%
* Percent Daily Values are based on a 2000 calorie diet.
Did you make this recipe?Do mention @yums0me and/or tag #yums0me - I'd love to see how yours turned out!
DisclaimerMeasurements in parenthesis are approximate; it is beyond the scope of yumsome to be able to provide pinpoint-accurate ingredient quantities for every type of measuring utensil. As a guideline however, I make the assumption that:
- 1 cup = US cup = 240 ml
- 1 tablespoon = US/UK = 15 ml
- 1 fl oz = US = 30 ml
Lindsay
I admire your innovation so much and am so excited to try this! May I ask you though if you think omitting the sugar would be disastrous?
Nico
Thanks so much, Lindsay! No, do feel free to lose the sugar - it's there to balance some of the acidity of the tomatoes but the dish won't suffer without it. I really hope you love this! xx
Teresa
I will definitely try this ! Looks delicious !
I actually found this article while looking for paneer alternatives (I tasted it at an indian restaurant where they assured me it was vegan and I loved it... Until I found out it wasn't and I felt like crying haha)
I'm also curious as to how it's made and if perhaps you've tried making it with cashew and how that turned out ?
Thanks for the recipe !
Nico
Oh gosh, what a disappointment - I imagine you felt pretty bad after that. I still haven't tried making 'paneer' with cashew milk... I guess I should try that out! Hope you enjoy the recipe! xx
Genevieve
Please let me know when you propose the receipe with a cashew milk option. I'd love to minimise my soya intake. Regards. 🙂
Nico
Hi Genevieve! I'm not sure it's possible to make tofu with cashew milk but perhaps Shan tofu (made with chickpea flour) would suit you better? I'll be posting a recipe for it very soon. If you haven't already, do sign up for my weekly newsletter! xx
Bindya Patel
I made this and it was amazing. I had so many compliments. Everything was on point. The only substitute i made was adding spinach instead of the methi but tasted just as good. Thank you for the sharing. Quick and easy. X
Nico
Bindya, thank you so much for letting me know - it really means a lot to me. I am so, so pleased you all loved it... high praise indeed! I'll have to try it with some spinach, thank you for the idea! xx
Choclette
Love your creativity in making tofu and cashew ricotta - and hopefully cashew paneer. I keep telling myself I'll have a go, but I've still not managed it. Really like the looks and sound of this dish - just gorgeous.
Nico
Thanks Choclette! I haven't tried the cashew paneer yet - we're moving back to Slovenia on Thursday, where I'll be having cheese-experiment fest! x
Kate | The Veg Space
Oh what a fab idea using tofu as a vegan paneer - this looks really rich and creamy, delicious!
Nico
It really is creamy and delicious, Kate! I must admit, whenever I've thought about using tofu in Indian dishes before, I've been a bit dubious, which is daft, given how much I use it in Thai curries! I'm really pleased to say though, that it does indeed work very well in Indian curries too. I'm going to be using it a lot more now!
Amy Katz from Veggies Save The Day
I love Indian food and I love tofu, so I know I will love this dish! I pinned it to try very soon!
Nico
Hooray! I hope you love as much as we do, Amy... it really is fab! Thank you so much for stopping by! x
Corina
This looks amazing and I am now so much craving a curry! I'm sure that with all the lovely creamy sauce the tofu will taste similar to paneer anyway.
Nico
If you use a very, very firm tofu, Corina, the texture is not too dissimilar, and of course, paneer doesn't really have much flavour anyway, so from that perspective, yep, the tofu works really well. I'm sure there are some purists who would poo-poo the idea of using tofu instead of paneer though! LOL!