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How To Make Authentic Indian Paneer Butter Masala

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Paneer butter masala is one of the most loved Indian curries. It has soft cubes of paneer cooked in a smooth, buttery, and slightly sweet tomato gravy. The flavours are rich but still gentle, which makes it perfect with naan, chapati, or jeera rice. It looks like a restaurant dish but it’s easy to make at home when you take it slow and cook it with patience.

prep time 00 Hour 20 Mins
cook time 00 Hour 30 Mins
chef Team Kitchen Diaries

Paneer butter masala is one of those dishes that everyone in India knows. It is often ordered at restaurants, but once you make it at home, you realise it is not that hard. The gravy looks rich and creamy, but it comes mostly from tomatoes, butter, and a little cream at the end. It’s that mix of mild spice, a bit of sweetness, and a silky sauce that makes it so special.

The paneer stays soft because it’s added only after the gravy is cooked well. The sauce is made by cooking onion, tomato, ginger, and garlic together and then blending it smooth. You can smell the butter and kasuri methi when it starts to thicken, and it fills the kitchen with that restaurant-style aroma that makes you feel hungry even if you just ate.

Every house makes it a little different. Some make it more spicy, some add more cream, and some like it sweeter. But all of them taste comforting. The colour is bright orange, and when you spoon it over rice or dip your naan in it, the flavour feels rich but not heavy

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Step 1

Heat oil and butter in a pan. Add onions and cook till soft and light brown. Add ginger-garlic paste and fry for a few seconds.

Step 2

Add chopped tomatoes or tomato puree. Cook till the oil separates from the mixture.

Step 3

Add turmeric, red chilli, coriander powder, and salt. Mix and cook for 2 minutes

Step 4

Add cashew nuts and some water. Let it cool a bit, then blend it into a smooth paste.

Step 5

Put the paste back in the pan with a small piece of butter. Add more water to make a medium-thick gravy.

Step 6

Add garam masala and kasuri methi. Stir well and cook for 5–7 minutes till it smells rich.

Step 7

Add paneer cubes and gently mix. Let it cook on low heat for 3–4 minutes so the paneer soaks the flavour.

Step 8

Add cream at the end and stir once more. Taste and adjust salt or sugar.

Step 9

Serve hot with naan, roti, or jeera rice.

Tips and Tricks

  1. Use fresh paneer for the best texture. If it’s hard, soak it in warm water before adding.

  2. Don’t rush the cooking; slow cooking gives better flavour.

  3. You can add a spoon of honey instead of sugar for a mild sweetness.

  4. Always crush kasuri methi between palms before adding.

  5. Add cream at the end only, not before, or it may curdle.
  6. The gravy thickens as it cools, so add a little more water if you want it smooth.

Frequently Asked Questions

You can, but they make the gravy creamy. If skipping, add more cream instead.

Yes, just soak in warm water for 5 minutes before using.

Yes, add milk instead of cream for a lighter version.

Add more red chilli powder or a little green chilli paste.

Yes, use tofu instead of paneer and coconut cream instead of dairy cream.

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