How to Make Paneer Butter Masala Recipe at Home: Paneer Butter Masala is a popular North Indian dish, rich in creamy, spiced gravy, and filled with the goodness of soft paneer cubes. This guide will walk you through every step to ensure you get the perfect Paneer Butter Masala right in your own kitchen. Whether you’re a beginner or a seasoned cook, this detailed step-by-step guide will help you master this delicious recipe.
Table of Contents
Ingredients for How to Make Paneer Butter Masala Recipe at Home:
Before we begin, let’s gather all the ingredients you’ll need. These are readily available in most Indian kitchens, and if not, they can be easily found in grocery stores.
For the paneer:
- 250-300 grams paneer (cut into cubes)
- 1 tbsp butter (for frying paneer, optional)
For the gravy:
- 2 large tomatoes (pureed)
- 2 medium-sized onions (finely chopped or pureed)
- 1 tbsp ginger-garlic paste
- 1-2 green chilies (slit lengthwise, optional)
- 8-10 cashews (soaked and ground into a paste)
- 1/2 cup fresh cream (or 1/4 cup malai)
- 1/2 cup milk
- 1 tsp kasuri methi (dried fenugreek leaves)
- 1 tbsp fresh coriander leaves (for garnish)
- 2 tbsp butter (unsalted)
- 1 tbsp oil
Spices:
- 1 bay leaf
- 1-inch cinnamon stick
- 2-3 cardamom pods
- 2-3 cloves
- 1 tsp cumin seeds
- 1/2 tsp turmeric powder
- 1 tsp red chili powder (adjust as per taste)
- 1/2 tsp garam masala powder
- 1 tsp coriander powder
- 1 tsp cumin powder
- Salt to taste
- Sugar (optional, to balance flavors)
Optional:
- 1 tsp lemon juice (for extra tang)
How to Make Paneer Butter Masala Recipe at Home Step-by-Step Process
Step 1: Preparing the Paneer
- Cutting the Paneer: Cut the paneer into bite-sized cubes. If you prefer, lightly fry the paneer cubes in a bit of butter until they turn golden brown at the edges. This step adds a little crispness, but you can skip it if you want a softer texture. Set the paneer aside. Tip: Soak fried paneer cubes in warm water for 5-10 minutes to keep them soft. This also removes excess oil and gives the paneer a spongy texture.
Step 2: Preparing the Cashew Paste for Paneer Butter Masala
- Soaking Cashews: Soak the cashews in warm water for about 15-20 minutes. Once softened, blend them into a smooth paste using a little water or milk. Tip: Cashew paste gives the gravy its rich, creamy texture. If you’re looking for a healthier alternative, you can replace it with almonds or skip it altogether, although it will affect the creaminess.
Step 3: Preparing the Tomato Puree for Paneer Butter Masala
- Tomato Puree: Take two large tomatoes, wash and chop them roughly. Blend them into a smooth puree. You can strain it if you prefer a smoother gravy, though it’s optional. Tip: Use ripe, juicy tomatoes for a naturally sweet taste. If the tomatoes are sour, balance it later by adding a pinch of sugar or a splash of cream.
Step 4: Cooking the Base Masala for Paneer Butter Masala
- Frying Spices: Heat 2 tbsp of butter and 1 tbsp oil in a pan. Add cumin seeds, bay leaf, cinnamon, cardamom, and cloves. Fry them on low heat until they release their aroma (about 30 seconds). Tip: Butter tends to burn easily, so adding oil prevents that while still retaining the rich, buttery flavor.
- Onion-Ginger-Garlic Paste: Add finely chopped onions or onion paste and sauté until they turn golden brown. Add the ginger-garlic paste and cook for another 2 minutes until the raw smell disappears.
- Add Tomato Puree: Pour in the tomato puree, and stir well. Let it cook until the oil starts to separate from the mixture (about 7-10 minutes).
Step 5: Spicing it Up for Paneer Butter Masala
- Add Spices: Once the tomato base is cooked, add turmeric, red chili powder, coriander powder, cumin powder, and a pinch of salt. Stir well and cook for another 2-3 minutes. Tip: To enhance the color of the gravy, you can add Kashmiri red chili powder. It adds a vibrant red color without making the dish too spicy.

Step 6: Cashew Paste & Creamy Touch
- Adding Cashew Paste: Stir in the cashew paste and cook for 3-4 minutes on medium heat. The cashew paste will make the gravy thick and rich.
- Adding Milk & Cream: Slowly pour in the milk, followed by fresh cream. Stir continuously to ensure that the gravy does not curdle. Cook for another 4-5 minutes. Tip: You can adjust the creaminess by altering the amount of cream and milk. For a richer version, add more cream, or use half-and-half milk and cream for a balanced flavor.
Step 7: Adding Paneer
- Final Touch with Paneer: Add the paneer cubes to the gravy. Stir gently to coat the paneer with the gravy. Simmer the curry on low heat for 5-7 minutes to allow the paneer to absorb the flavors. Tip: Be careful not to overcook the paneer, as it can become chewy.
Step 8: Flavor Boosters
- Kasuri Methi & Garam Masala: Add crushed kasuri methi and garam masala for a final flavor punch. Stir and cook for another minute.
- Optional: For extra tang, add a teaspoon of lemon juice just before serving.
Step 9: Garnishing
- Garnish & Serve: Garnish the Paneer Butter Masala with fresh coriander leaves and a drizzle of fresh cream. Serve hot with naan, chapati, or jeera rice.
Cooking Time Breakdown
- Preparation Time: 15 minutes (cutting paneer, soaking cashews)
- Cooking Time: 30-40 minutes
- Total Time: 45-55 minutes
Tips for Making the Best Paneer Butter Masala:
- Use Fresh Paneer: Fresh homemade paneer always gives the best texture and flavor. If you’re using store-bought paneer, soak it in warm water for 10 minutes to soften it.
- Control the Spice Level: Paneer Butter Masala is a mildly spiced dish. However, you can adjust the heat by varying the amount of chili powder or skipping the green chilies.
- Balance the Flavors: If the gravy tastes too tangy due to the tomatoes, balance it with a pinch of sugar or more cream. If it’s too sweet, add a splash of lemon juice.
- For Richness: Cashews, cream, and butter are the key ingredients that make this dish rich and creamy. You can adjust them based on your preference or dietary needs.
- Rest Time: Let the Paneer Butter Masala rest for a few minutes before serving. This allows the paneer to absorb the flavors fully.
Frequently Asked Questions (FAQ)
Q1: Can I use frozen paneer for this recipe?
Yes, you can use frozen paneer. Make sure to thaw it properly by soaking it in warm water before cooking. This will ensure it softens and cooks evenly.
Q2: What can I substitute for cashew paste?
You can use almond paste or even melon seeds paste as a substitute. If you want to avoid nuts, a small amount of heavy cream or full-fat yogurt can also work.
Q3: How can I make this dish vegan?
To make a vegan version of Paneer Butter Masala, substitute paneer with tofu, use coconut milk or cashew cream instead of dairy cream, and replace butter with oil or vegan butter.
Q4: Why did my gravy curdle after adding milk or cream?
Milk or cream may curdle if added to very hot gravy. Lower the heat and stir continuously when adding them. Adding a pinch of baking soda before the cream can also help prevent curdling.
Q5: How can I make this recipe without onions and garlic?
For a no-onion, no-garlic version, you can skip the onions and ginger-garlic paste. Use more tomatoes and cashew paste to create a thick, flavorful gravy.
Final Thoughts
Paneer Butter Masala is a crowd-pleaser, perfect for special occasions or as a comforting meal on any day. It strikes the perfect balance between creamy, tangy, and mildly spiced, making it a versatile dish. Follow this recipe, and you’ll have a restaurant-style Paneer Butter Masala ready in no time.
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