
Introduction:
There’s something truly special about a good Paneer Butter Masala. Every time I make it, the aroma of buttery tomatoes and spices fills the kitchen and instantly reminds me of cozy Sunday lunches at home. This dish isn’t just food it’s nostalgia in a bowl. The Paneer Butter Masala Recipe has that perfect balance of creamy, mildly spiced gravy and soft, melt in your mouth paneer cubes that somehow feels both luxurious and comforting at the same time.
I still remember the first time I tried making it during college. I was so sure I’d messed it up because the gravy looked too orange and runny but once it simmered and thickened, oh, it was pure magic. My friends actually licked their plates clean (which, honestly, might be the best compliment a cook can get). Over time, I’ve refined my own version still rich, but a bit lighter, with a balance that doesn’t leave you feeling too heavy afterward.
What I love most about Paneer Butter Masala is how versatile it is. You can serve it with naan, roti, paratha, or even plain steamed rice, and it always feels like a feast. So, if you’re craving something creamy, aromatic, and deeply satisfying, this is the recipe you’ll want to bookmark and make again and again.
Ingredients You’ll Need:
- 250g paneer (cut into medium cubes)
- 3 medium tomatoes (roughly chopped)
- 2 medium onions (sliced)
- 2 tablespoons butter
- 1 tablespoon oil
- 1 teaspoon ginger-garlic paste
- 8 to 10 cashew nuts (soaked for 10 minutes)
- 1 teaspoon red chili powder (adjust to taste)
- ½ teaspoon turmeric powder
- 1 teaspoon garam masala
- 1 teaspoon coriander powder
- ½ teaspoon cumin powder
- Salt to taste
- ¼ cup fresh cream (or substitute with malai)
- 1 teaspoon kasuri methi (crushed)
- Fresh coriander for garnish
- 1 cup water (or adjust for desired gravy thickness)
Note: You can adjust these quantities depending on how many servings you want to make. The below measurements are just an example for a medium family portion.
Step by Step Method:
Step 1: Prepping the Base
Start by heating a tablespoon of oil and a teaspoon of butter in a wide pan. The mix of oil and butter helps prevent the butter from burning too fast. Add the sliced onions and saute until they turn golden. Don’t rush this part it’s what gives the sauce that subtle sweetness and depth later.
Once the onions soften, add the chopped tomatoes, cashews, and a pinch of salt. The salt helps the tomatoes break down faster. Cook until the tomatoes are completely mushy and release their natural oil. You’ll know it’s ready when the mixture looks glossy. Let it cool slightly, then blend it into a smooth paste. This will be your gravy base.

Step 2: Building the Gravy
In the same pan (no need to wash it you want that flavor), add another spoon of butter. Toss in the ginger garlic paste and sauté until the raw smell fades. Be careful not to burn it burnt ginger garlic can make the curry bitter.
Now add your blended onion tomato cashew paste back into the pan. Stir it well, letting it cook for 4 to 5 minutes. You’ll notice the color deepening to that classic rich orange red shade. Add chili powder, turmeric, coriander powder, and cumin powder. I usually sprinkle in a pinch more chili powder if I’m in the mood for some heat but totally up to you. Stir everything together and let it simmer until you see a little oil floating on top. That’s your cue that the masala is perfectly cooked.

Step 3: Making It Creamy
Pour in about a cup of water and stir to combine. Adjust the consistency depending on how thick you like your gravy. Bring it to a gentle boil, then lower the flame. Add the paneer cubes gently so they don’t break. I prefer soaking the paneer in warm water for 10 minutes before adding it keeps them soft and spongy.
Now add garam masala, kasuri methi (crushed between your palms for more aroma), and a generous swirl of fresh cream. Stir slowly and let it cook for 5 to 7 minutes on low flame. The cream brings everything together, giving the dish that signature velvety texture. Taste once adjust salt or spice as you like.

Step 4: The Final Touch
Turn off the flame, cover the pan, and let it rest for about 5 minutes. This little step allows the paneer to absorb all those buttery, tangy flavors. Sprinkle fresh coriander on top before serving. The smell at this stage is honestly irresistible I usually end up sneaking a spoonful right then and there.
Serve hot with naan, jeera rice, or even a simple tawa roti. You’ll see why Paneer Butter Masala never goes out of style.

Tips & Tricks:
- Always use fresh paneer for the softest texture. If using store bought paneer, soak it in warm water for 10 minutes before cooking.
- For extra richness, add a small cube of butter right before serving it melts into the gravy beautifully.
- If you prefer a lighter version, skip the cream and use milk or cashew cream instead.
- Kasuri methi is the secret hero don’t skip it. It adds that restaurant like aroma that makes this dish irresistible.
- Leftovers taste even better the next day as the flavors settle in deeper. Just reheat it gently with a splash of milk.
Common Mistakes to Avoid:
I’ve seen a lot of people (including my past self) make a few easy to avoid mistakes with Paneer Butter Masala. First, don’t overcook the paneer it gets rubbery fast. Once you add it to the gravy, just simmer briefly to let it soak up flavor.
Second, don’t rush the onion-tomato base. This is where all the magic happens. If the base isn’t cooked enough, your curry might taste raw or too tangy. Take your time sautéing until it’s thick and glossy that’s the key difference between an average curry and a great one.
Also, go easy on the cream. It’s tempting to pour in a lot thinking it’ll make the gravy silkier, but too much cream can actually dull the spices and make it bland. Balance is everything.
Finally, taste as you go. Everyone’s spice tolerance is different. Adjust chili and garam masala little by little rather than dumping them all in at once. Cooking should feel like a conversation between you and the food it tells you when it’s done if you listen carefully.
Nutritional & Health Angle:
Paneer Butter Masala isn’t exactly a low-calorie dish, but that’s not the point it’s about indulgence done right. A serving gives you good protein from the paneer, healthy fats from cashews, and essential nutrients from tomatoes and onions. If you want to lighten it up, you can replace fresh cream with low fat yogurt or milk and use less butter.
It’s actually quite balanced if you pair it with whole wheat roti or brown rice instead of heavy naan. And since paneer is high in calcium and protein, it’s great for vegetarians who need that extra boost. I like to think of it as a “treat meal” that’s still nourishing in its own way.
Conclusion:
If you’ve never made Paneer Butter Masala from scratch, I really hope this inspires you to give it a shot. It’s one of those dishes that feels fancy but is surprisingly simple once you get the hang of it. And every kitchen has room for a little butter and spice, right?
The next time you want something comforting and special without spending hours in the kitchen, this recipe will have your back. I’ve made it countless times for friends and family, and it never fails to get that happy, content silence around the table the kind that only happens when everyone’s too busy enjoying the food.
So go ahead, get your pan ready, and let your home smell like your favorite Indian restaurant tonight. Paneer Butter Masala never disappoints it just warms the heart, one creamy bite at a time.