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    Home»Recipes»Paneer Butter Masala Recipe – Sharmis Passions
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    Paneer Butter Masala Recipe – Sharmis Passions

    Gopi KrishnaBy Gopi KrishnaFebruary 26, 2026No Comments11 Mins Read0 Views
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    Paneer Butter Masala Recipe – Sharmis Passions
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    Paneer Butter Masala is one of the most popularly ordered side dishes in restaurants. Paneer Butter Masala Recipe is a rich, creamy and delicious gravy perfect to go with chapati, roti, rice, naan etc. This paneer butter masala recipe is one of the most tried recipes here and loved by all. Learn to make restaurant style Paneer Butter Masala with step by step pictures and video, includes tips and tricks for beginners to try at home.

    Paneer Butter Masala is one of the first restaurant style dishes that I recreated at home and it was a huge success. It took me several times to recreate the exact taste as in restaurants but I am so glad finally I am with the best recipe. My kids love paneer butter masala so I make it often.

    Jump to:

    About Paneer Butter Masala

    Paneer Butter Masala also known as ‘butter paneer’ is a popular Indian side dish for roti, naan, chapati, jeera rice, pulao etc. Paneer Butter Masala is made using Indian cottage cheese called paneer smothered in a creamy tomato based sauce. This tomato based gravy is known as makhani sauce.

    Makhani Sauce is one of the mother sauces in restaurants and they make several dshes with it. You can even replace paneer with potato, tofu, gobi, chicken, baby corn, chana, sweet corn, mushroom etc.

    I can claim this recipe for paneer butter masala is one of the best as it has been tried and appreciated by many of the readers, friends and family. I make it the same way for chana butter masala which is our family favorite too.

    Paneer Butter Masala is one of the most popular side dishes available in most of the restaurant menus. It is very easy to recreate the same restaurant style paneer butter masala at home. The velvety smooth tomato based gravy is so addictive and loved by all.

    paneer butter masala just made

    Paneer Butter Masala Video

    There are several variations to this paneer butter masala recipe, many shortcuts to make it quick. I have tried the pressure cooker version too which is really quick. But over the years I have understood that the classic version though takes times gives the best paneer butter masala that I’ve shared here.

    The main taste comes from the sauteed onion, tomato which forms the base for this recipe. I would suggest to saute onion, tomatoes well which is the key to a perfect tasting paneer butter masala.

    I would always judge a restaurant by tasting Paneer butter masala. In my perspective if the restaurant can keep up the standards for this particular dish then I would assume that the other dishes would also taste great.

    paneer butter masala served with roti

    Similar Recipes

    Paneer Butter Masala Ingredients

    • Paneer – Homemade fresh paneer is best to use. However store bought paneer which includes fresh or frozen can also be used.
    • Onion, Tomato – I use half and half ratio of onion : tomato which works best and gives good volume too.
    • Butter – I have used unsalted butter, you can use salted butter too but make sure to adjust salt accordingly. Do not reduce butter as it gives a nice aroma and beautiful glaze to this dish.
    • Fresh Cream – You can use store bought fresh cream or the cream that we collect from full cream milk at home to make butter.
    • Cumin seeds, Ginger garlic paste – Cumin seeds is added while tempering. Ginger garlic paste is added for flavor.
    • Whole spices – Bay leaf, cinnamon, cardamom and cloves are used for tempering.
    • Cashews – Cashews grind along with sauteed onion, tomato gives a creamy texture to the gravy.
    • Spice powders – Kashmiri chili powder, cumin seeds powder, coriander powder and garam masala powder is added.
    • Kasoori methi, coriander leaves – Kasoori methi is crushed and added at the final stage along with fresh coriander leaves.
    ingredients needed to make paneer butter masala

    How to make Paneer Butter Masala Step by Step

    1.Take 200 grams paneer cubes, soak in warm water for 15 minutes, drain and set aside. I always cut paneer into small cubes for it to absorb the flavor well.

    soak paneer in hot water

    2.To a pan add 2 medium sized onion sliced and saute until it turns transparent.

    saute onion

    3.Add 4 medium sized tomatoes roughly chopped along with 10 cashews.

    add tomatoes, cashews

    4.Saute for a minute until it shrinks in volume.

    saute until mushy

    5.Cook covered for 5 minutes or until raw smell of tomatoes completely leave.

    cook covered

    6.Open and give a quick mix. Cool down.

    saute until mushy and soft

    7.Transfer to a mixer jar.

    transfer to a mixer jar

    8.Grind it to a fine puree, set aside.

    grind it to a fine puree

    9.Rinse the pan, add it back and switch on the flame. Heat 1 tablespoon butter – add 1 small bay leaf, one 1 inch cinnamon, 1 clove, 1 cardamom and ½ teaspoon cumin seeds. Give a quick saute.

    saute whole spices in butter

    10.Add 1 heaped teaspoon kashmiri red chili powder and give a quick saute. Now add 1 teaspoon ginger garlic paste and 1 green chili.

    add chili powder, ginger garlic paste, green chili

    11.Give a quick saute.

    saute well

    12.Add onion, tomato puree along with ½ cup mixer rinsed water.

    add onion tomato puree

    13.Give a quick mix and cook covered as it splutters a lot at this stage. Cook for 5 minutes.

    cook covered

    14.Now open and add salt to taste, ½ teaspoon sugar, 1 teaspoon red chili powder, 1 teaspoon coriander powder, 1 teaspoon garam masala powder and ½ teaspoon cumin powder.

    add spice pwoders

    15.Give a quick mix. Cook for 2 minutes.

    cook for few minutes

    16.Now add drained paneer cubes. Give a quick mix.

    add paneer

    17.Add ¼ cup fresh cream,1 tablespoon butter, 1 teaspoon crushed kasoori methi and 1 tablespoon coriander leaves.

    add cream, butter, kasoori methi and coriander leaves

    18.Give a quick mix.

    mix it well

    Restaurant style paneer butter masala is ready!

    paneer butter masala served with roti

    Expert Tips

    • Butter – Use good quality butter wither salted or unsalted butter. Adjust salt accordingly.
    • Paneer – Cut the paneer into small cubes for it to absorb the gravy well. Soaking paneer in hot water helps to make paneer soft. I usually do not fry the paneer add it as such but you can toast it in oil and add it to gravy too.
    • Onion, Tomato – Choose ripe fresh and juicy tomatoes. Make sure to saute onion, tomatoes well until raw smell completely leaves.
    • Fresh cream – You can use store bought fresh cream or cream collected from milk. If using cream collected at home, mash it well to make it smooth and then add it.
    • Cashews – Cashews can be soaked in hot water and added to grind or cooked along with onion, tomato to make it soft.
    • Low fat version – Replace half of butter with oil, half of fresh cream with milk.
    • Consistency – The consistency should be flowing and creamy.
    • Chili powder – Kashmiri chilli added to butter gives a bright orangish red color to the gravy so do not miss this step.

    Serving & Storage

    Paneer Butter Masala goes well with phulka, chapati, roti, naan, plain basmati rice, jeera rice, pulao etc. Paneer Butter Masala keeps well in fridge for 2 days.

    FAQS

    1.What is Butter Paneer?

    Paneer Butter Masala is also called as Butter Paneer, they both are same.

    2.Why does my paneer turn rubbery?

    Paneer becomes rubbery when over cooked so do not cook it for a long time. Once added bring to a boil and switch off.

    3.Should I fry paneer in oil before adding to gravy?

    I usually do not fry paneer just add it as such. But you can even fry and add if you prefer. Frying makes paneer a bit hard so after frying paneer soak in hot water which makes the paneer soft.

    4.Can I add tomato puree replacing tomatoes?

    Yes you can add tomato puree but the taste and texture varies. Fresh tomatoes works best however store bought tomato puree should be added less in quantity as it is more sour than fresh tomatoes.

    5.Can I replace cream with milk?

    Yes you can replace cream with milk, but the taste and texture may vary accordingly. I would suggest to use half and half of fresh cream and milk if you are looking for a low fat version.

    6.Will the gravy split if I add milk?

    The gravy may split if milk is added when the gravy is boiling in high flame. So always add milk lowering the flame.

    7.What can I replace cashews with?

    You can replace cashews with almonds. Soak 10 almonds in hot water, peel the skin and add it.

    paneer butter masala served with roti

    If you have any more questions about this Paneer Butter Masala Recipe do mail me at sharmispassions@gmail.com. In addition, follow me on Instagram, Facebook,  Pinterest, Youtube and Twitter .

    Tried this Paneer Butter Masala Recipe? Do let me know how you liked it. Also tag us on Instagram @sharmispassions and hash tag it on #sharmispassions.

    📖 Recipe Card

    Paneer Butter Masala Recipe

    Paneer Butter Masala is one of the most popularly ordered side dishes in restaurants. Paneer Butter Masala Recipe is a rich, creamy and delicious gravy perfect to go with chapati, roti, rice, naan etc. This paneer butter masala recipe is one of the most tried recipes here and loved by all. Learn to make restaurant style Paneer Butter Masala with step by step pictures and video, includes tips and tricks for beginners to try at home.

    Total Time30 minutes mins

    Ingredients

    To grind

    • 2 medium sized onion (sliced)
    • 4 medium sized tomatoes (roughly chopped)
    • 10 cashews

    To temper

    • 1 tablespoon butter
    • 1 small bay leaf
    • one 1 inch cinnamon
    • 1 small clove
    • 1 small cardamom
    • ½ teaspoon cumin seeds

    Instructions

    • Take 200 grams paneer cubes, soak in warm water for 15 minutes, drain and set aside. I always cut paneer into small cubes for it to absorb the flavor well.

    • To a pan add 2 medium sized onion sliced and saute until it turns transparent.

    • Add 4 medium sized tomatoes roughly chopped along with 10 cashews.

    • Saute for a minute until it shrinks in volume.

    • Cook covered for 5 minutes or until raw smell of tomatoes completely leave.

    • Open and give a quick mix. Cool down.

    • Transfer to a mixer jar.

    • Grind it to a fine puree, set aside.

    • Rinse the pan, add it back and switch on the flame. Heat 1 tablespoon butter – add 1 small bay leaf, one 1 inch cinnamon, 1 clove, 1 cardamom and ½ teaspoon cumin seeds. Give a quick saute.

    • Add 1 heaped teaspoon kashmiri red chili powder and give a quick saute. Now add 1 teaspoon ginger garlic paste and 1 green chili.

    • Give a quick saute.

    • Add onion, tomato puree along with ½ cup mixer rinsed water.

    • Give a quick mix and cook covered as it splutters a lot at this stage. Cook for 5 minutes.

    • Now open and add salt to taste, ½ teaspoon sugar, 1 teaspoon red chili powder, 1 teaspoon coriander powder, 1 teaspoon garam masala powder and ½ teaspoon cumin powder.

    • Give a quick mix. Cook for 2 minutes.

    • Now add drained paneer cubes. Give a quick mix.

    • Add ¼ cup fresh cream,1 tablespoon butter, 1 teaspoon crushed kasoori methi and 1 tablespoon coriander leaves.

    • Give a quick mix.

    • Restaurant style paneer butter masala is ready!

    Video

    Notes

    • Butter – Use good quality butter wither salted or unsalted butter. Adjust salt accordingly.
    • Paneer – Cut the paneer into small cubes for it to absorb the gravy well. Soaking paneer in hot water helps to make paneer soft. I usually do not fry the paneer add it as such but you can toast it in oil and add it to gravy too.
    • Onion, Tomato – Choose ripe fresh and juicy tomatoes. Make sure to saute onion, tomatoes well until raw smell completely leaves.
    • Fresh cream – You can use store bought fresh cream or cream collected from milk. If using cream collected at home, mash it well to make it smooth and then add it.
    • Cashews – Cashews can be soaked in hot water and added to grind or cooked along with onion, tomato to make it soft.
    • Low fat version – Replace half of butter with oil, half of fresh cream with milk.
    • Consistency – The consistency should be flowing and creamy.
    • Chili powder – Kashmiri chilli added to butter gives a bright orangish red color to the gravy so do not miss this step.

    Nutrition Facts

    Paneer Butter Masala Recipe

    Amount Per Serving (100 g)

    Calories 591
    Calories from Fat 423

    % Daily Value*

    Fat 47g72%

    Saturated Fat 25g156%

    Trans Fat 0.3g

    Polyunsaturated Fat 2g

    Monounsaturated Fat 6g

    Cholesterol 110mg37%

    Sodium 129mg6%

    Potassium 745mg21%

    Carbohydrates 26g9%

    Fiber 6g25%

    Sugar 12g13%

    Protein 21g42%

    Vitamin A 2311IU46%

    Vitamin C 34mg41%

    Calcium 670mg67%

    Iron 2mg11%

    * Percent Daily Values are based on a 2000 calorie diet.

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    Gopi Krishna is the founder of GearUpK, a kitchen gadgets and lifestyle blog based in Bangalore. Passionate about smart cooking solutions, he shares reviews, guides, and tips to help readers upgrade their kitchens with the latest tools and trends.

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