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6 Min
26/11/2025
Butter paneer has the range of a blockbuster like Sholay: familiar, satisfying, and a hit every single time it runs. It's comforting enough for a weekday, and impressive enough for a dinner spread. If you're after something rich and creamy, without the chaos, queue this one up. Serve with naan, rice, or whatever's playing sidekick on your plate, for this dish will always steal the spotlight.
Paneer butter masala has earned its place as a staple in North Indian cooking–not because it’s rich or restaurant-style, but because it delivers on flavour with minimal fuss, in 30 minutes. At its core, butter paneer is made with ripe tomatoes, a handful of spices, and fresh paneer. The appeal isn’t in complexity; it’s in how easily the ingredients interact, as the paneer simmers in a smooth, buttery sauce, to make something deeply satisfying. Read on for a stripped-down version of this rich paneer gravy dish with some tips and tricks for helpful swaps.
Paneer butter masala, also known as paneer makhani or butter paneer, is a popular North Indian dish renowned for its rich, creamy gravy and smooth, mildly spiced profile. Originating from Delhi in the 1950s, it’s a successor of butter chicken, which was developed at the Moti Mahal restaurant by Kundan Lal Jaggi and Kundan Lal Gujral. The paneer came later as North India adapted to the vegetarian fare. It uses the same gravy of butter chicken (which uses dry leftover tandoor chicken) but mixed with a spiced tomato gravy enriched with butter. The appeal of paneer butter masala lies in its balanced, familiar flavours with a hint of garam masala that makes it a crowd favourite.
Paneer butter masala is fairly easy to make and uses a handful of spices and choicest ingredients, relying heavily on tomatoes, cashews, cream, and spices to pack a punch.
Tomatoes
Pick ripe, red, slightly sweet tomatoes to make the makhani sauce base. If fresh tomatoes aren’t available, canned whole tomatoes work well too and will have better flavour than fresh tomato purée.
Cashews (and Substitutes)
Cashews are the not-so-secret ingredient that adds a nuttiness and creamy flavour to the dish, balancing the tanginess of the tomatoes with a subtle sweetness. If you don’t have cashews, you can use soaked and peeled almonds. If you’re allergic to nuts, skip nuts and only use cream.
Cream
Fresh cream thickens the sauce and adds richness, which is important for paneer butter masala. For a lighter dish, you can skip cream or use coconut cream as a vegan alternative.
Butter
It’s in the name itself; butter is important to this dish, adding richness without overpowering the dish. Use the recommended amount to avoid a heavy dish. Vegan butter or flavourless oil works for plant-based versions.
Paneer
Using soft, fresh paneer is key. Buy it from your local dairy shop, or you can use a homemade batch for the softest paneer cubes in the makhani sauce. Follow package prep instructions, if any, for store-bought ones. For vegan versions, you can substitute extra-firm tofu, tempeh, or seitan.
Spices and Herbs
This is the crown jewel of the dish, with simple powdered spices creating the signature taste: Kashmiri red chilli powder (for colour), garam masala (for the heat), and kasuri methi (dried fenugreek leaves) for layered flavours. Fresh coriander makes a good garnish. Whole spices aren’t used in this dish except for Indian bay leaf (tej patta), cloves, and cinnamon stick, which are discarded later.
Butter Paneer Recipe
(Serves 4)
Ingredients
- 2 teaspoons oil, divided
- 1 bay leaf
- ½ inch cinnamon stick
- 3-4 whole cloves
- 6-7 large garlic cloves, roughly chopped
- 1 & ½ inch ginger, roughly chopped
- 1 large white onion, roughly chopped
- 3-4 medium tomatoes, roughly chopped
- 10-15 whole cashews raw
- 1 cup water
- 2 tablespoons unsalted butter
- ½ teaspoon red chilli powder
- ½ teaspoon Kashmiri red chilli powder
- ½ teaspoon garam masala
- ¼ teaspoon cardamom powder
- 1 teaspoon sugar
- ¾ teaspoon salt or to taste
- ½-1 tablespoon tomato paste, optional
- 3-4 tablespoons cream
- 250 grams paneer, cut into cubes
- 2 teaspoons crushed kasuri methi
- To garnish: coriander, chopped
Instructions
1. Heat a teaspoon of oil in a pan on medium heat. Once the oil starts releasing fumes, add bay leaf, cinnamon stick, cloves, and sauté for a few seconds.
2. Quickly add the garlic, ginger, and onion and sauté for another 2-3 minutes until the onion turns translucent.
3. Add the tomatoes, cashews, and mix for a while, then add 1 cup of water. Cover the pan with a lid and cook for 15 minutes.
4. After that, remove the pan from the stove. Discard the bay leaf, cinnamon stick, and cloves. Once the masala cools, transfer it to a blender and grind it into a smooth paste.
5. Put the pan back on medium heat and add butter with the remaining oil.
6. Add chilli powder, Kashmiri red chilli powder, and sauté for a few seconds. Pour the ground paste from the blender into the pan and add the garam masala, cardamom powder, sugar, salt, and tomato paste. Mix well and cook for 1-2 minutes.
7. Add the cream next and mix it. Then add the paneer cubes and cook for 2-3 minutes. Add the crushed kasuri methi and give it a final stir.
8. Garnish the butter paneer masala with chopped coriander and serve hot with a side of roti or rice.
To get a silky, restaurant-style gravy, make sure you blend the tomatoes and cashews into a very smooth purée. This is essential to avoid any grittiness in the final dish. A high-powered blender helps, especially if you're using soaked cashews or almonds.
Always cook the tomato base well. Let it simmer until the oil starts to release from the sides of the pan – this step develops depth and removes any raw tomato flavour. If you’re using canned tomatoes, you may need to add a pinch of sugar to balance the strong flavour, especially when skipping cream.
Paneer should go in last. Whether you’re using homemade or store-bought, add the cubes only after the sauce is nearly done, and simmer briefly – just enough to warm through. Overcooking will make paneer rubbery and dry.
Cream and kasuri methi should always be added at the very end, off the heat. This prevents curdling and preserves their flavour. Crush the kasuri methi between your palms before adding; this releases more aroma into the dish.
Butter Paneer is all about balance; it’s not meant to be too spicy or too tangy. If your gravy ends up sharp from tomatoes, a little sugar or extra cream can round things out. This is especially helpful when using canned purée or skipping nuts.
For those skipping cashews due to allergies or preference, peeled and soaked almonds work just as well. If you're going completely nut-free, you can omit them entirely and rely on cream alone – the sauce will be slightly less thick but still rich and smooth.
If you’re making the dish ahead, butter paneer actually improves as it rests. The flavours deepen after a few hours, so it’s a great make-ahead option for dinners or small gatherings. Just reheat on the stove before serving, and avoid boiling after adding cream.
And yes, you can absolutely make it vegan. Swap the paneer for tofu or tempeh, and use oil and coconut cream instead of butter and dairy. The taste will shift slightly, but you’ll still get a creamy, comforting result.
A good butter paneer doesn’t need layers of cream or long cooking times. What matters is a well-cooked tomato base, the right balance of spices, and knowing when to add what. This recipe keeps that focus. No shortcuts on flavour – just a method that respects the ingredients and gets straight to the point. It’s reliable, adaptable, and gets the job done without trying too hard. Exactly how a classic like this should be.
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