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Paneer Butter Masala Recipe ~ Restaurant Style!

Paneer Butter Masala is a creamy rich gravy with Cottage Cheese from Punjab. This is a crowd pleaser and kids will surely love it. While the restaurant version normally oozes out with butter, this version is still rich with home touch.
Course Main Dish - Gravies
Cuisine Punjab
Keyword Creamy Gravies
By Cook Method Stovetop
Occasion Party, Weekend Special
By Diet Kid Friendly
Dish Type Paneer Dishes
Prep Time 20 minutes
Cook Time 20 minutes
Total Time 40 minutes
Servings 4 people
Author Srivalli


For Gravy

  • 250 gms Paneer / Indian Cottage Cheese, homemade
  • 2 big Onions
  • 3 big Tomatoes
  • 2 inch Ginger
  • 4 cloves Garlic
  • 10 nos Cashew Nuts
  • 100 ml Milk
  • 2 tbsp Butter more if you prefer
  • A Pinch Red Colour
  • Salt to taste
  • 1/4 tsp Sugar
  • 1 tsp Red Chilli powder
  • 1/2 tsp Cumin Powder roasted
  • 1/2 tsp Garam Masala

For Garnishing:

  • 1 medium Onions
  • 2 to 3 Green Chillies

Optional Garnishing:

  • 1 medium Capsicum
  • 1/4 tsp Fenugreek Seeds
  • A Pinch Kasuri Methi Leaves


  • Follow the steps as explained for max time saving on cooking and cleaning
  • First take the ingredients needed for gravy, cut onions, ginger, garlic and grind to a fine paste. Remove and then make puree of Tomatoes. Grind the cashew nut coarsely.
  • Then take the ingredients kept for Garnishing. Cut Paneer into cubes, finely chop the onions, slit the green chillies.
  • Heat required amount of butter in the cooking pan. Fry each of the above ingredients. Onions should be crispy. Paneer should be fried to light golden colour. Keep these aside.
  • Take the pan that’s already used for frying, add 1 tbsp of butter, fry the onion paste. Sauté well to ensure it does not get burned.
  • Once its cooked well, add chilli powder. Cook till oil comes out, simmer the flame. Add milk slowly and cook for 5 mins. Then add coarsely ground cashew nuts.
  • Cook Once cooked for a while, add tomato puree, cumin powder, Salt, Sugar, garam masala, Orange colour. Bring to boil. Add required amount of water. Let it cook on high flame for few mins.
  • Then add fried onions, paneer cubes, green chillies, and cook for 10 mins. Add the remaining butter.
  • Kasuri methi can be added at this stage. and cook it covered.
Tried this recipe?Mention @cooking4all or tag #cooking4all!