Paneer Butter Masala is one of the most popular North Indian paneer curries served in Indian restaurants around the world. Made with soft paneer cubes simmered in a rich, buttery tomato-based gravy, this dish is known for its creamy texture and mildly sweet, aromatic flavor. This restaurant-style paneer butter masala recipe shows you how to recreate that authentic dhaba-style taste at home using simple pantry ingredients and easy techniques.
Jump to:
About this recipe and some memories!
While I don't have a dearth of Paneer gravies or Paneer Dishes, I was so tempted to make this again with a new version. This method actually gets done with finely minced onions. I skipped and made a puree of onions considering my kids don't like onions as a whole. Well, I am waiting for the time when they will accept onions in their form.
I had cooked this dish as part of the Blogging Marathon theme featuring Restaurant Recreations.
What Makes This Restaurant-Style Paneer Butter Masala Different?
Restaurant-style paneer butter masala stands out because of its texture and balance. The gravy is smooth, creamy, and slightly sweet with a subtle hint of spice. The secret lies in:
- Cooking the onion and tomato base properly to remove raw flavors
- Blending the gravy for a silky finish
- Using butter and cream to create richness
- Balancing spices without overpowering the dish
In restaurants, the gravy is often prepared in advance and simmered slowly to develop depth. This version recreates that method in a simple, home-friendly way while maintaining authentic flavor.
Key Ingredients for Paneer Butter Masala
While the ingredient list may seem simple, each component plays an important role in building flavor and texture.
Paneer
Fresh, soft paneer works best for this recipe. If using store-bought paneer, soak the cubes in warm water for 10-15 minutes before adding them to the gravy to keep them soft. I always use homemade paneer for best results.
Onions and Tomatoes
Onions and Tomatoes form the base of the gravy. Ripe red tomatoes give natural sweetness and vibrant color.
Butter
Butter is essential for authentic flavor. It enhances richness and gives the curry its signature taste.
Cream
Fresh cream is added at the end to provide smoothness and mellow out acidity from tomatoes.
Cashews
Cashews help thicken the gravy naturally and add body without overpowering the flavor.
Aromatic Spices
I have used whole spices and spice powders, garam masala along with chili powder, and a touch of kasuri methi (dried fenugreek leaves) that bring warmth and depth to the dish.
Step-by-Step Overview of the Cooking Process
Here's a quick step by step process to make this paneer butter masala comes together:
- Prepare the Onion and Tomato Base - Cook the onion and tomatoes puree with spices until soft and slightly thickened.
- Blend for Smoothness - Blend the cooked mixture into a smooth paste for that restaurant-style texture.
- Simmer with Butter & Cream - Return the gravy to the pan, add butter and cream, and let it simmer gently.
- Add Paneer Cubes - Add paneer towards the end and cook briefly to prevent it from turning rubbery.
- Finish with Kasuri Methi - Crush dried fenugreek leaves between your palms and stir in for aroma.
This method ensures a smooth, balanced gravy that coats the paneer beautifully.
Tips for Perfect Creamy Gravy
- Blend the onions and tomato mixture for a smooth sauce.
- If required, run this mix through a sieve to get a smooth sauce.
- Simmer on low heat to avoid splitting and keep it covered while cooking.
- Add cream at the end to maintain richness.
- Do not overcook paneer - it can turn rubbery.
What to Serve With Paneer Butter Masala
Paneer Butter Masala pairs beautifully with Indian breads and rice dishes such as:
For a complete Indian dinner, serve it with warm naan and a simple rice dish on the side along with salad.
How to Make It Less Rich or Healthier
If you prefer a lighter version:
- Replace cream with milk or just add cashew paste alone.
- Reduce butter and use a little oil instead.
- Skip cream entirely and increase blended cashews for thickness.
The curry will still be flavorful, though slightly less indulgent.
Yes. In fact, the gravy tastes even better after a few hours as the flavors deepen. Store in the refrigerator and reheat gently before serving.
Traditionally, it is mildly spiced and slightly sweet. You can increase chili powder if you prefer more heat.
You can freeze the gravy separately. Add fresh paneer after reheating for best texture.
Yes, you can substitute cream with milk or cashew paste for a lighter version.
Recipe
Paneer Butter Masala (Creamy Restaurant-Style Indian Curry)
Ingredients
- 1 medium Onion
- 1 tsp Ginger Garlic Paste
- Salt to taste
- 1 cup Tomato
- 250 gms Paneer
- 1 tsp Sugar
- 2.5 tbsp Butter
- 1/3 cup Cashew Nuts grind to a powder
- 1 tbsp Cooking Oil
- 1/3 cup Cream
Spices Used
- 1 tsp Fennel Seeds
- 1 tsp Cumin Seeds
- 3 Cardamoms
- 1 Bay Leaf
- 1 Cinnamon
- 1.5 tsp Kasturi Methi
- A Pinch Turmeric Powder
- 1 tsp Cumin Powder
- 1 tsp Fennel Powder
- 1.5 tsp Chili Powder
- 1/2 tsp Garam Masala Powder
Instructions
- Heat a nonstick pan with oil and 1 tbsp butter, add the whole spices and 1 tsp fenugreek leaves. Stir it around and add the garlic ginger. Stir it around for a few seconds.
- Add the onion, salt, and turmeric. Mix it around and cook for 1 minute.
- Next add the cumin powder, fennel powder, and chili powder. Mix it around and cook for 2 minutes.
- When the mix is nicely done, add the tomatoes, Mix it around. Cover the pan and let it simmer for 5 minutes.
- Remove and let it cool down. Once it is cool, remove the bay leaf, take it in a blender, add 1 cup water and make a nice puree.
- Heat the pan with 1 tbsp. butter, add the onion tomato puree and cook on high for 5 mins.
- After 5 mins, simmer and cook for 10 mins or until the mixture is cooked well.
- Add sugar, diced Paneer cubes, rest of the fenugreek leaves, and garam masala. Sauté for 1 minute.
- Add rest of the butter, ground cashew, and cream. Mix it around and simmer for 1 minute.
- Serve warm with a drizzle of cream on top
Chef Mireille says
It is so funny whenever I see Butter Paneer I think of Vaishali. We had it at an Indian restaurant when she visited NYC and she was complaining how it was not Butter Paneer and how horrible they made it. I will try your version for a real Butter Paneer!