Paneer Butter Masala

Paneer Butter Masala is a delicious recipe of cottage cheese prepared in rich and creamy curry with lots of butter. This recipe is basically the soul of most of the Indian main course for dinner or lunch parties. Additionally Paneer Butter Masala goes well with Rumali Roti, Ghee Chapati, Naan, Tandoori Roti, all types of rice including biryani and pulao.

Rich creamy texture of Paneer Butter Masala recipe not only satites the tongue and tummy but the mind also.

Although there are different methods to make Paneer Butter Masala here I am discussing easier method to make it. Moreover This is one of the best paneer recipes for one and all.

Paneer Butter Masala Recipe


  • 300 gms of Paneer (Cottage Cheese) cut into cubes or triangles
  • 3 medium Onions (roughly chopped)
  • 1 small dried Red chilli
  • 3 medium Tomatoes (red and ripe)
  • 8-10 whole cashews dry roasted
  • 5-8 makhane dry roasted
  • 1 tsp Kasuri methi
  • 4 tbsp Ghee (clarified butter)
  • 1tsp Kashmiri Mirch (Degi Mirch/ red chilli)
  • 1 tsp salt or as per taste
  • 1/2 tsp sugar
  • 2 tbsp Butter (optional salted or non salted)
  • 1 tsp Garam masala/ Shahi Biryani Masala
  • 1/2 tsp turmeric
  • 1 tsp coriander powder
  • 2-3 tbsp fresh cream

How to make Paneer Butter Masala

  • Firstly heat 3 tbsp ghee in a pan over low to medium flame.
  • Now add dry red chilli and chopped onion. Saute it for 4-5 minutes till onions start becoming pinkish golden.
  • Add a pinch of Degi mirch and stir.
  • Next add Chopped tomatoes to it and saute till tomatoes become soft and mushy. This will take another 4-5 minutes. Cover it with lid and stir intermittently.
  • Add dry roasted cashews and makhanas and stir for 2 minutes.
  • Now close the flame and let it cool.
  • Till the time onion tomato mixture is cooling cut paneer into cubes or traingles whatever shape you like.
  • Blend the tomato onion mixture into a smooth paste.
  • Again take the same pan and heat 1 tbsp ghee over low flame. Now add 1 tbsp butter also to it.
  • Add degi mirch, turmeric, coriander powder and stir continuously for 30 seconds.
  • Now add the tomato onion paste and stir it properly.
  • Add garam masala and salt as per taste and sprinkle kasuri methi. Keep some kasuri methi for garnishing.
  • Add 1/2 cup water and cover the pan with lid. Let it cook for 6-7 minutes over low flame.
  • Then add fresh cream and 1/2 tsp sugar. Mix well and again cook for 2 minutes.
  • Add paneer cubes to the curry and cook over low flame with pan covered with lid for 5 minutes.
  • Adjust the consistency of gravy by adding 1/2 cup more water and cook for 5 minutes.
  • At last add 1 tbsp butter and mix well. Garnish with kasuri methi.
  • Finally serve with rice or chapati, Tandoori roti, Naan etc.

Recipe Notes

  • Curries with cashews and makhanas tend to thicken while cooking. So add enough water while cooking.
  • Sugar is added to balance the spiciness of red chillies.
  • Make the curry creamier by slightly increasing the quantity of fresh cream.
  • Addition of some garam masala at the end of cooking retains the flavours. I personally prefer to use Shahi Biryani masala here.
  • When only butter is heated it tends to burn so heat edible oil or ghee first and then add butter.
  • Last but not the least Most of the paneer recipe taste best when leavened for around 3-4 hours. It’s better to prepare it 3-4 hours before serving.