Restaurant-Style Paneer Butter Masala
If you’ve been searching for that perfect restaurant style paneer butter masala — the kind that comes with creamy butter masala gravy and that deep red chili glow — you’re about to make your dinner table a lot more exciting.
This paneer recipe is a buttery, mildly spiced, slightly sweet North Indian curry made with 250 grams paneer cubes, cashews, tomatoes, cream, and a mix of warming spices like garam masala powder and crushed kasuri methi. Think of it as butter paneer’s slightly more indulgent cousin (and not to be confused with paneer tikka masala). This is the paneer butter masala you find in Indian restaurants, the one people Google with “required recipe ratings” before ordering something else anyway.
Serving Suggestions
This restaurant-style paneer dish pairs perfectly with butter naan, tandoori roti, jeera rice, or plain basmati rice. A few onion and cucumber slices on the side? Even better.
At home, I usually go with soft chapati or a steaming bowl of ghee rice. Paneer butter masala doesn’t need much to shine — it’s a star on its own.
Pro Tips for Making Paneer Butter Masala
- Using store bought paneer? Always soak in hot water for 20 mins to keep it soft.
- Want silky smooth curry? Blend the onion tomato mixture well, and strain if needed.
- Don’t overcook after adding cream. It may split — especially if your cream has no stabilizers.
- Crushed kasuri methi (dried fenugreek leaves) brings signature aroma — don’t skip if you can find it.
- You can fry paneer for a slightly crisp bite, but soak it in warm water after or it will turn chewy.
- Substitutes: Swap paneer for tofu, grilled veggies, or even eggs if you’re feeling adventurous.
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FAQ About Paneer Butter Masala
Is paneer butter masala healthy?
Well, it depends on how generous you’re feeling with the butter and cream! Paneer butter masala isn’t exactly diet food, but it can be part of a balanced meal — especially if you go easy on the fat and pair it with a fiber-rich side like brown rice or whole wheat roti. Cashews and paneer do add protein and healthy fats, so it’s indulgent but not without some benefits.
Is paneer butter masala spicy?
Not traditionally! Restaurant style paneer butter masala is more creamy and rich than spicy. We use Kashmiri red chili powder mostly for color, not heat. But if you want more kick, you can always sneak in a green chili or two.
Is paneer butter masala gluten free?
Yes! This recipe is naturally gluten free — there’s no wheat, no flour, and no thickeners involved. Just be sure your store bought paneer and spices are labeled gluten free if you’re cooking for someone sensitive.
How does paneer butter masala taste?
Creamy, rich, slightly sweet, and gently spiced. It’s one of those masala recipes where everything is soft and smooth — no aggressive heat, just warm, comforting flavor. A true restaurant style paneer dish.
Which cream should I use for paneer butter masala?
Use what you have on hand — fresh cream, whipping cream, or even sterilized cooking cream all work. Just avoid anything too light or non-dairy unless it’s specifically made for cooking, as it might split. And remember, cream goes in at the end — not while the curry is still bubbling.
Is paneer butter masala vegetarian?
Yes! 100%. It’s a classic Indian vegetarian curry. And a favorite at most Indian restaurants for a reason — it pleases meat eaters too.
Is paneer butter masala sweet or spicy?
It’s more on the sweet and tangy side than spicy. The tomato-cashew base gives it a slight sweetness, while the masalas bring warmth and depth without overpowering the dish.
Is paneer butter masala good with rice?
Absolutely. Paneer butter masala and basmati rice are a match made in Indian comfort food heaven. You can also pair it with jeera rice, ghee rice, or even quinoa if you’re feeling adventurous.
If you’re savoring this rich and creamy Paneer Butter Masala, you might also enjoy exploring more of our Indian recipes. For a delightful appetizer, try the Easy Gobi Manchurian, a crispy cauliflower dish with a tangy sauce.
Ready? Let’s talk butter, masala, and everything nice.
Paneer Butter Masala
Ingredients
Prep for Paneer (optional)
- 250 grams paneer cubed (especially important if you’re using store bought paneer)
- Hot water enough to soak
For the Onion Tomato Base
- 1 tbsp oil
- 2 green cardamoms
- 1 large onion chopped (about 120g)
- 3 ripe tomatoes 300–350g, chopped (for a smoother butter masala, deseed them)
- ¾ tsp salt
- ¾ to 1 tsp Kashmiri red chili powder or any low-heat red chilli powder
- ¾ to 1 tsp garam masala adjust to taste
- 1 tsp coriander powder optional
- 15 whole raw cashews
- ¾ tsp sugar to balance acidity
For the Final Gravy
- 1½ tbsp butter
- 2 green cardamoms
- 1 bay leaf
- ½ inch cinnamon stick
- 3 cloves
- 1½ tsp ginger garlic paste
- ½ to ¾ cup water
- 1 tsp kasuri methi dried fenugreek leaves, crushed
- 2 –3 tbsp cream
- Salt to taste
Garnish
- 1 tbsp cream
- 1 tbsp chopped fresh coriander
Instructions
Step 1: Prep the Paneer
- If you’re using store bought paneer and it tends to get tough, soak it in hot water for 15–20 minutes while you prep the butter masala recipe. Drain and set aside.
Step 2: Make the Onion Tomato Puree
- In a hot pan, heat 1 tbsp oil. Add 2 cardamoms and the chopped onion. Sauté over medium heat until soft and slightly pink — about 4 minutes.
- Add chopped tomatoes and salt. Sauté for 2–3 minutes, cover the pan, and cook until everything turns mushy.
- Now stir in your red chili powder (Kashmiri red for that iconic color), teaspoon garam masala, coriander powder, cashews, and sugar. Let everything cook for another 2–3 minutes until your kitchen smells incredible.
- Turn off the heat and cool the mixture slightly. Then blend it with 1 cup water into a smooth tomato puree. If your blender isn’t powerful, strain for that ultra-silky finish.
Step 3: Cook the Butter Masala Gravy
- In a clean pan, melt 1½ tbsp butter over low heat. Add whole spices (cardamoms, bay leaf, cinnamon, cloves). Let them sizzle.
- Stir in ginger garlic paste and cook until the raw smell disappears (about a minute).
- Pour in the blended onion tomato masala. Add another ¼ tsp red chili powder if you like a deeper color.
- Add ½ cup water (or more as needed) to reach a good gravy consistency. Cover and simmer for 10–12 minutes until you see little pools of butter on top — a sure sign your curry is ready.
- Taste, adjust salt, and remove whole spices if you prefer.
Step 4: Add Paneer and Finish
- Stir in your soaked paneer cubes and crushed kasuri methi (dried fenugreek leaves).
- Cover and cook for just 2–3 minutes on low. Overcooking paneer is how people end up with rubbery regrets.
- Gently stir in the cream. Turn off the heat and admire your creamy paneer makhani masterpiece.
Notes
This restaurant-style paneer dish pairs perfectly with butter naan, tandoori roti, jeera rice, or plain basmati rice. A few onion and cucumber slices on the side? Even better. At home, I usually go with soft chapati or a steaming bowl of ghee rice. Paneer butter masala doesn’t need much to shine — it’s a star on its own.
