Go Back
–+ servings
A white serving bowl filled with paneer butter masala and topped with streaks of cream and garnished with chopped cilantro.

Paneer Butter Masala

Course: Lunch / Dinner
Cuisine: Indian
Prep Time: 15 minutes
Cook Time: 45 minutes
Total Time: 1 hour
Servings: 4
Calories: 522kcal
Author: Kris Longwell
Homemade Paneer Butter Masala is a flavorful and creamy Indian dish featuring soft paneer cubes cooked in a rich, buttery tomato gravy infused with aromatic spices. Perfectly balanced and comforting, it’s a delicious treat to enjoy with naan or puri.
Print Recipe

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

Video

Notes

NOTE: Watch the video near the top of the recipe for visual guidance.
See the blog post for more details on the spices and ingredients used in this dish. 
Hot green peppers/chilis can be found at Asian and Indian markets. They carry quite a bit of heat. We add one pepper, and it gives just a some kick. If you want minimal to no spice, then omit the pepper. For extra heat, use two peppers. 
The sauce can be made 24 hours in advance. Reheat on the stove until bubbly. 
Leftovers will keep in an air-tight container in the fridge for 5 to 7 days. The sauce can be frozen for 2 to 3 months. Thaw completely before reheating. 

Nutrition

Calories: 522kcal | Carbohydrates: 17g | Protein: 13g | Fat: 37g | Saturated Fat: 18g | Polyunsaturated Fat: 1g | Monounsaturated Fat: 8g | Cholesterol: 113mg | Sodium: 658mg | Potassium: 501mg | Fiber: 4g | Sugar: 8g | Vitamin A: 1410IU | Vitamin C: 26mg | Calcium: 396mg | Iron: 1mg