Paneer Butter Masala is a classic North Indian dish known for its rich, creamy tomato-based gravy and tender paneer cubes. This authentic recipe combines fragrant spices, butter, and cream to create a luscious sauce that perfectly complements the soft paneer. It’s an ideal dish to serve with homemade puri or naan, making every meal a comforting and flavorful experience.
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🍅 The Ingredients
Many of the ingredients for Paneer Butter Masala can be found at your local Indian market or easily ordered online— for the most authentic flavor, be sure to choose the freshest and highest-quality spices and paneer. Find ingredient notes (including substitutions and variations) below.
👉 Substitutions and Variations
- Protein – Paneer is the cheese of choice in all Indian cooking. Packaged paneer can be found in the specialty cheese section of many well-stocked supermarkets. For the highest quality, seek out an Indian food market. Chicken is a common (and delicious) substitute for paneer. Sear cub pieces of seasoned (salt and pepper) chicken breast in ghee and then add to the sauce.
- Ginger-Garlic Paste – This is an ingredient you’ll probably need to find at your local Indian market or order online. Two minced cloves of garlic and two teaspoons of chopped fresh ginger can be used as substitutes. Sauté them in ghee and then remove with a slotted spoon. Stir them into the gravy before puréeing.
- Nuts – Cashews are traditional, but almonds are a perfectly acceptable substitution. We recommend roasted and lightly salted or unsalted.
- Butter – Ghee is clarified butter that can be found in the oil section of many well-stocked supermarkets. Or at Indian markets or online. Quality unsalted butter can easily be substituted.
- Spices – Homemade garam masala is incredible and so much easier to prepare than you might think. However, the bottle variety works well, too. Kashmir chili powder, green cardamom pods, and dried fenugreek leaves (aka kasoori methi) can be found at Indian markets or online. Regular chili powder can be substituted.
See the recipe card (with video) below for a full list of ingredients and measurements.
Expert Tip
Most of the spices you will need to get your hands on to prepare this dish have a long shelf life, 3 to 6 months. Store in air-tight containers and use them repeatedly for exploring new, amazingly delicious homemade Indian cuisine.
🧑🏾🍳 How To Prepare the Paneer and Make Gravy
- Step 1: Cut the paneer into bite-sized pieces, place in a bowl, and cover with warm, salted water.
- Step 2: Heat the ghee over medium heat, and then sauté 3 cardamom pods, the bay leaf, cinnamon, and sliced onion until translucent and just starting to brown.
- Step 3: Add the chopped tomatoes, cover, and simmer for 10 minutes.
- Step 4: Stir in the cashews, salt, sugar, chili powder, garam masala, and coriander. Sauté for 2 minutes.
- Step 5: Let cool somewhat, remove the cinnamon and bay leaf, transfer to a blender, and purée the mixture.
- Step 6: Pass the gravy through a fine-mesh colander into a medium-sized bowl.
😋 How to Make Paneer Butter Masala
- Step 1: Clean out your skillet, heat 3 tablespoon ghee, and simmer with bay leaf, cinnamon, cardamom, and cloves.
- Step 2: Add the Kashmiri chili powder and ginger-garlic paste, stir, and sauté for 1 to 2 minutes.
- Step 3: Add the prepared gravy and water and stir to combine.
- Step 4: Drain the paneer and place it in the butter sauce. Simmer for about 3 minutes.
- Step 5: Turn off the heat and stir in the cream.
- Step 6: Garnish with more cream, chopped cilantro, and serve with rice and naan on the side.
🍽️ How To Serve, Store, and Reheat
- You want to serve the sauce nice and hot, right off the stove.
- While the butter masala is simmering, make perfect steamed rice, or steamed basmati rice (see Expert Tip) below for making steamed basmati rice.
- Pick up some naan from your local Indian market or the bakery at your supermarket. Or, make some fried Indian puffed bread (poori).
- Leftovers are even better the next day. Simply reheat on the stove or even in the microwave. Store in an air-tight container in the fridge for 4 to 5 days.
Expert Tip:
How to Make Perfectly Steamed Basmati Rice: Go with a ratio of 1:1½ of rice to water. For example, for 1 cup of aged basmati rice, you’ll need 1½ cups of water. Place in a saucepan (with a lid) along with a few aromatics, such as green cardamom pods, bay leaf, cloves, and a healthy pinch of salt. Bring to a boil, cover, and immediately bring the temperature down to low. Cook (without peeking) for 12 minutes. Turn off the heat for 10 minutes, then fluff with a fork.
🙋🏽♂️ Frequently Asked Questions
Yes, you can substitute cream with cashew paste or yogurt for a lighter version, though cream adds the signature richness and smooth texture to the dish.
To keep paneer soft and tender, gently simmer it in the gravy rather than frying it too long, and avoid overcooking.
Absolutely! The tomato-based gravy can be made ahead and refrigerated for up to 2 days, making it convenient to reheat and add paneer just before serving.
Yes, Paneer Butter Masala is a vegetarian dish made primarily with paneer (Indian cottage cheese), butter, tomatoes, and spices, making it a popular choice for vegetarians.
🇮🇳 More Classic Homemade Indian Dishes
Ready to make authentic Indian food in your very own kitchen? Go for it!
And when you do, be sure to take a photo of it, post it on Instagram, and tag @HowToFeedaLoon and hashtag #HowToFeedaLoon!
Paneer Butter Masala
Video
Equipment
- 1 Large skillet Preferably 12" with a lid
Ingredients
For the Paneer
- 10 oz paneer about 300 grams
- Warm salted water
For the Gravy
- 3 tablespoon ghee
- 1 bay leaf preferably Indian
- 3 green cardamom pods
- 1 inch cinnamon stick
- 1 large onion red or yellow, thinly sliced
- 1 small green chili finely chopped, optional
- 5 medium tomatoes ripe, roughly chopped
- 18 whole cashews roasted, lightly salted or unsalted
- 1 teaspoon salt
- 1 teaspoon sugar
- 1 teaspoon Kashmiri chili powder
- 1 teaspoon garam masala
- 1 teaspoon coriander powder
- 1½ cups water
For the Butter Masala
- 3 tablespoon ghee
- 1 inch cinnamon stick
- 1 large bay leaf Preferably Indian
- 3 green cardamom pods
- 3 cloves
- 2 tablespoon ginger-garlic paste
- 1 teaspoon Kashmiri chili powder
- prepared gravy
- ⅓ cup water
- 1 teaspoon fenugreek leaves dried, hand-crushed
- 2 tablespoon heavy cream plus more for garnish
- 2 tablespoon cilantro fresh, or coriander, for garnish
- steamed rice for serving
Instructions
Prep the Paneer
- Cut the paneer into bite-sized cubes. Place in a bowl and add warm with that has been mixed with 1tbsp salt. Set aside until ready to use.10 oz paneer, Warm salted water
Make the Gravy
- Heat the ghee (3 tbsp) in a large skillet over medium heat. Once simmering, add the bay leaf, cardamom pods, cinnamon stick, and onion. Sauté, stirring often, until the onions are translucent and starting to slightly brown, about 5 to 7 minutes.3 tablespoon ghee, 1 bay leaf, 3 green cardamom pods, 1 inch cinnamon stick, 1 large onion
- If using, stir in the chopped chili and cook for another 1 minute.1 small green chili
- Stir in the chopped tomatoes. Cover and simmer for 3 minutes. Remove the lid and stir in the cashews, salt, sugar, chili powder, garam masala, and coriander powder. Stir and simmer for 2 minutes.5 medium tomatoes, 18 whole cashews, 1 teaspoon salt, 1 teaspoon sugar, 1 teaspoon Kashmiri chili powder, 1 teaspoon garam masala, 1 teaspoon coriander powder
- Stir in the water and simmer over medium heat for 10 minutes. Let cool down slightly and then carefully transfer to a blender. Purée until smooth. Pass the gravy through a sieve (or colander) into a heatproof bowl. Set aside.1½ cups water
Make the Butter Masala
- Clean out the skillet (or get a new one) and heat the ghee (3 tbsp) over medium heat. Once simmering, add the cinnamon, bay leaf, cardamom pods, and cloves. Simmer until aromatic, about 2 minutes.3 tablespoon ghee, 1 inch cinnamon stick, 1 large bay leaf, 3 green cardamom pods, 3 cloves
- Reduce the heat to medium-low and stir in the ginger-garlic paste and chili powder. Sauté for 1 minute.2 tablespoon ginger-garlic paste, 1 teaspoon Kashmiri chili powder
- Stir in the reserved prepared gravy and water (⅓ cup), and simmer, stirring often, until slightly thickened and the butter has been incorporated into the sauce, about 10 minutes. Taste and add more salt, if desired.prepared gravy, ⅓ cup water
- Remove the whole spices with a skimmer (or slotted spoon), if desired.
- Drain the paneer and gently add it to the sauce. Use your fingers (or hands) to crush the fenugreek into the sauce (about 1 tsp). Stir and simmer for 3 minutes.1 teaspoon fenugreek leaves
- Turn off the heat and stir in 2 tablespoon of the cream. Transfer to a serving bowl and garnish with additional cream and chopped cilantro.2 tablespoon heavy cream, 2 tablespoon cilantro
- Serve at once with steamed rice.steamed rice
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