Paneer Butter Masala
A rich and creamy North Indian curry featuring soft paneer cubes in a silky tomato-based gravy, flavored with aromatic spices and finished with butter and cream.

Photo by Eaters Collective on Unsplash
Total Time
Prep + Cook
Yield
Ingredients
For the Paneer:
- 400g paneer, cut into cubes
- 2 tablespoons oil for frying
- 1/4 teaspoon turmeric powder
For the Gravy:
- 4 large tomatoes, roughly chopped
- 2 medium onions, roughly chopped
- 1-inch ginger piece
- 4-5 garlic cloves
- 2-3 green chilies (adjust to taste)
- 1/2 cup cashew nuts (soaked in warm water)
For the Curry:
- 3 tablespoons butter
- 1 bay leaf
- 2-3 green cardamom pods
- 1-inch cinnamon stick
- 1 teaspoon cumin seeds
- 1 teaspoon red chili powder
- 1 teaspoon coriander powder
- 1/2 teaspoon garam masala
- 1 teaspoon kasuri methi (dried fenugreek leaves)
- 1/2 cup heavy cream
- 1 tablespoon sugar (optional, to balance acidity)
- Salt to taste
- Fresh coriander leaves for garnish
Instructions
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Prepare the Paneer: Lightly fry the paneer cubes with turmeric in hot oil until golden on all sides. Remove and soak in warm water to keep them soft. Set aside.
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Make the Base Paste: In a blender, combine chopped tomatoes, onions, ginger, garlic, green chilies, and soaked cashews. Blend into a smooth paste. Set aside.
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Temper the Spices: Heat butter in a large pan or kadhai over medium heat. Add bay leaf, cardamom, cinnamon, and cumin seeds. Let them crackle and release their aroma for about 30 seconds.
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Cook the Gravy: Pour the blended tomato-onion paste into the pan. Cook on medium-high heat for 10-12 minutes, stirring occasionally, until the oil starts to separate from the gravy and the raw smell disappears.
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Add Spices: Add red chili powder, coriander powder, salt, and sugar. Mix well and cook for another 2-3 minutes to let the spices bloom.
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Create the Creamy Texture: Lower the heat and add the heavy cream, stirring continuously. Crush the kasuri methi between your palms and add it to the curry. Mix well.
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Add the Paneer: Drain the paneer cubes and gently add them to the gravy. Simmer for 3-4 minutes on low heat, allowing the paneer to absorb the flavors.
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Finish with Garam Masala: Sprinkle garam masala over the curry and give it a gentle stir. Turn off the heat.
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Garnish and Serve: Garnish with fresh coriander leaves and a drizzle of cream if desired. Serve hot with naan, roti, or basmati rice.
Tips
- For Extra Richness: Add an extra tablespoon of butter at the end for a restaurant-style finish.
- Spice Level: Adjust green chilies and red chili powder according to your preference. This recipe is mildly spiced.
- Make it Vegan: Substitute paneer with tofu, use coconut cream instead of dairy cream, and replace butter with vegan butter or oil.
- Storage: This curry tastes even better the next day! Store in an airtight container in the refrigerator for up to 3 days.
- Cashew Alternative: If you have a nut allergy, you can use melon seeds (magaz) or skip the cashews entirely, though it will be less creamy.
- Kasuri Methi is Key: Don’t skip the dried fenugreek leaves - they add an authentic, slightly bitter note that elevates the dish.