Paneer Butter Masala is a rich, creamy curry made with soft paneer in a smooth tomato based gravy. This restaurant style version uses butter, cashews, cream and mild spices to create a silky gravy with balanced sweetness, tang and gentle heat.
The recipe keeps the method practical, with fixed quantities and clear cooking cues. The most important steps are cooking the tomato masala properly, blending it until smooth and keeping the paneer soft.
Paneer Butter Masala Recipe Card
Restaurant Style Paneer Butter Masala
Prep Time: 15 minutes
Cook Time: 30 minutes
Total Time: 45 minutes
Serves: 4
Cuisine: North Indian
Course: Main Course
Ingredients
For the Paneer
500 g paneer, cut into medium cubes
Warm water, enough to soak the paneer
For the Gravy
2 tablespoons butter
1 tablespoon neutral cooking oil
1 bay leaf
1 inch cinnamon stick
2 green cardamom pods
2 cloves
1 medium onion, roughly chopped
1 tablespoon ginger garlic paste
4 medium ripe tomatoes, roughly chopped
12 to 15 cashews
1 teaspoon Kashmiri red chilli powder
1 teaspoon coriander powder
½ teaspoon cumin powder
½ teaspoon turmeric powder
½ teaspoon garam masala
½ teaspoon sugar
Salt to taste
¾ cup warm water
3 tablespoons fresh cream
1 teaspoon kasuri methi
1 tablespoon chopped fresh coriander
Method
1. Soften the paneer
Place the paneer cubes in warm water for 10 minutes. Drain gently before adding them to the gravy.
2. Cook the tomato base
Heat 1 tablespoon oil and 1 tablespoon butter in a pan. Add bay leaf, cinnamon, cardamom and cloves.
Add the chopped onion and cook until soft.
Add ginger garlic paste and cook until the raw aroma disappears.
Add tomatoes and cashews. Cook over medium heat until the tomatoes become completely soft and the mixture looks thick.
3. Blend the gravy
Let the cooked mixture cool slightly.
Remove the whole spices if you prefer a very smooth gravy.
Blend the tomato mixture into a fine paste. Pass it through a strainer for a smoother restaurant style texture.
4. Cook the gravy
Heat the remaining butter in the same pan.
Add the blended gravy.
Add Kashmiri red chilli powder, coriander powder, cumin powder, turmeric, sugar and salt.
Cook over medium heat until the gravy thickens and the butter starts appearing around the edges.
5. Adjust the consistency
Add ¾ cup warm water and mix gently.
Simmer for 4 to 5 minutes.
The gravy should be smooth and thick enough to coat the back of a spoon.
6. Add the paneer
Add the softened paneer cubes.
Cover and cook over low heat for about 5 minutes.
Do not boil the curry aggressively after adding the paneer.
7. Add cream and finishing spices
Lower the heat.
Add fresh cream, kasuri methi and garam masala.
Mix gently and cook for another 1 to 2 minutes.
8. Finish and serve
Turn off the heat.
Add fresh coriander.
Let the curry rest for 5 minutes.
Serve hot with naan, roti, paratha or jeera rice.
How to Make Paneer Butter Masala at Home
Step 1: Keep the Paneer Soft
The easiest way to prevent hard paneer is to soften it before it goes into the gravy.
Place the paneer cubes in warm water for about 10 minutes.
Do not boil the paneer in water.
Drain it gently and keep it ready.
This small step is useful when you are using packaged paneer, which can be firmer than freshly made paneer. Current recipe references also commonly recommend soaking store bought paneer in warm water before cooking.
Step 2: Build the Tomato Cashew Base
Heat oil and butter together.
Add the whole spices and let them release their aroma.
Add onion and cook until soft. You do not need deeply browned onions for this recipe.
Add ginger garlic paste and cook until the raw smell disappears.
Add tomatoes and cashews.
Cook until the tomatoes are very soft.
Do not rush this stage.
Undercooked tomatoes can leave the gravy sharp and raw tasting.
Step 3: Blend for a Smooth Paneer Gravy
Let the cooked tomato mixture cool slightly before blending.
Blend until completely smooth.
For a very fine restaurant style gravy, strain the puree through a fine sieve.
This extra step removes tomato skin, seeds and coarse cashew particles.
The result is a smoother gravy that coats the paneer evenly.
Step 4: Cook the Masala Properly
Return the strained gravy to the pan.
Add Kashmiri red chilli powder, coriander powder, cumin powder, turmeric, sugar and salt.
Cook over medium heat until the mixture becomes thick and glossy.
You should see small amounts of butter appearing around the edges.
That visual change is more useful than relying only on a cooking timer.
Step 5: Get the Gravy Consistency Right
Add warm water gradually.
Start with ¾ cup.
The amount needed can vary slightly depending on how thick your tomato puree is.
The finished gravy should be smooth and creamy rather than watery.
It should lightly coat a spoon but still flow easily onto the plate.
Step 6: Add the Paneer
Add the softened paneer to the gravy.
Mix gently.
Cover and simmer for about 5 minutes.
Paneer does not need prolonged cooking.
Long cooking can make the texture firm and chewy.
Step 7: Finish With Cream, Kasuri Methi and Garam Masala
Lower the heat before adding cream.
Add kasuri methi and garam masala.
Cook gently for another minute or two.
Turn off the heat.
Add coriander and allow the curry to rest for 5 minutes before serving.
How to Keep Paneer Soft in Paneer Butter Masala
Soft paneer makes a major difference to the finished curry.
Start by soaking the cubes in warm water for about 10 minutes.
Do not fry the paneer for a long time before adding it to the gravy.
Keep the final simmer short.
Avoid boiling the gravy aggressively after adding the paneer.
Fresh paneer can also give a softer texture than older packaged paneer. Current recipe sources commonly recommend warm water soaking for store bought paneer.
How to Make Smooth Paneer Gravy
A smooth gravy comes from the preparation of the tomato base.
Cook the tomatoes until completely soft.
Blend the tomato and cashew mixture thoroughly.
Strain the puree when you want a very fine restaurant style texture.
Cook the blended gravy before adding the paneer.
Avoid adding large amounts of water at once.
The smoother the tomato base, the more polished the finished gravy will feel.
Why Does Paneer Become Rubbery?
Paneer can become rubbery when it is cooked for too long or exposed to high heat for an extended period.
Old paneer can also have a firmer texture from the start.
For softer paneer, soak the cubes in warm water before cooking and keep the final simmer gentle.
Do not keep the curry boiling after adding the paneer.
How Long to Cook Paneer Butter Masala
The entire recipe takes around 45 minutes, including preparation.
The blended tomato gravy needs enough time to lose its raw taste and develop a thicker texture.
Once the paneer is added, around 5 minutes of gentle simmering is enough for this recipe.
Cream, kasuri methi and garam masala go in near the end.
Cooking the paneer for much longer can affect its texture.
Paneer Butter Masala Without Cashews
Cashews help create body and smoothness in the gravy, but they are not essential.
For a version without cashews, leave them out and reduce the water slightly.
You can add an extra tablespoon of cream near the end to maintain richness.
The gravy will be less nutty but can still remain smooth when the tomato mixture is blended and strained properly.
Paneer Butter Masala Without Cream
You can make the curry without cream.
The cashew and tomato base already provide richness and body.
For a lighter version, leave out the cream and add a little less water so the gravy remains thick.
The flavour will be slightly less rich than the full restaurant style version.
Easy Paneer Butter Masala Recipe Variation
For a quicker version, skip straining the gravy.
Blend the cooked tomato, onion and cashew mixture until smooth and add it directly to the pan.
The curry will still taste rich, although the texture will not be as fine as a strained restaurant style gravy.
This is a useful option for a regular weekday meal.
Paneer Butter Masala vs Paneer Tikka Masala
Both dishes use paneer in a tomato based gravy, but the preparation is different.
Paneer Butter Masala uses a smooth makhani style gravy with butter, cream and mild spices.
Paneer Tikka Masala usually starts with paneer that has been marinated and grilled or charred before it goes into the gravy.
That gives Paneer Tikka Masala a stronger grilled flavour and firmer exterior.
For a rich, smooth and mild curry, Paneer Butter Masala has a different character from the more smoky profile of Paneer Tikka Masala.
Paneer Butter Masala Variations
Dhaba Style Paneer Butter Masala
A dhaba style version can use more robust spices and a less refined gravy.
Keep the tomato mixture slightly coarse instead of straining it.
A little extra garam masala can create a stronger spice profile.
Cashew Rich Paneer Makhani
Increase the cashews slightly and blend them thoroughly with the cooked tomatoes.
This creates a thicker and nuttier gravy.
No Onion Paneer Butter Masala
Skip the onion and increase the tomato quantity slightly.
A cashew based gravy can help replace some of the body normally provided by onion.
Mild Paneer Butter Masala
Reduce the green chilli and use Kashmiri red chilli powder mainly for colour.
Keep the cream and butter quantities unchanged for a mild and rich flavour.
What to Serve with Paneer Butter Masala
Paneer Butter Masala pairs naturally with Indian breads and rice.
Naan
Soft naan works especially well with the thick, creamy gravy.
Roti
Roti provides a simpler pairing for an everyday meal.
Paratha
Plain or layered paratha works well when you want a richer meal.
Jeera Rice
The cumin aroma from jeera rice complements the tomato and butter based gravy.
Plain Basmati Rice
Steamed basmati rice keeps the meal simple and lets the curry remain the main flavour.
Common Paneer Butter Masala Problems
The gravy tastes raw
The tomato mixture was probably not cooked long enough.
Continue cooking until the tomatoes are completely soft and the gravy becomes glossy.
The gravy is too watery
Simmer it uncovered for a few minutes.
Do not add more paneer while the gravy is still thin.
The gravy is too thick
Add a small amount of warm water and mix gently.
Add water gradually rather than pouring in a large amount at once.
The curry tastes too sour
Tomatoes vary naturally in acidity.
Add a small amount of sugar and taste again.
Do not add a large amount at once.
The paneer is chewy
The paneer may have been cooked for too long.
Next time, soften it in warm water first and keep the final simmer short.
The gravy is grainy
Blend the tomato and cashew base more thoroughly.
Strain it before returning it to the pan for a smoother finish.
Frequently Asked Questions
How do I make restaurant style Paneer Butter Masala at home?
Cook the tomato and cashew base thoroughly, blend it until smooth, strain it for a fine texture and finish with butter, cream, kasuri methi and garam masala.
The gravy should be thick enough to coat the paneer without becoming pasty.
Is Paneer Butter Masala the same as Paneer Makhani?
The names are often used for closely related dishes.
Recipes can differ in their use of butter, cream, cashews, onion and spices. This recipe uses a smooth tomato cashew gravy with butter and cream.
Can I use homemade paneer?
Yes.
Homemade paneer can give the curry a very soft texture.
Make sure the paneer is firm enough to cut into cubes without crumbling.
Can I use frozen paneer?
Yes.
Thaw it fully and soak the cubes in warm water before adding them to the curry.
Drain gently so the cubes do not break.
How can I make Paneer Butter Masala less spicy?
Reduce the green chilli and use Kashmiri red chilli powder mainly for colour.
Avoid adding extra hot chilli powder.
Can I make Paneer Butter Masala without onion and garlic?
Yes.
You can prepare a version without onion and garlic by building the gravy around tomato, cashews, butter, cream and suitable spices.
Can I make Paneer Butter Masala without cashews?
Yes.
The gravy will have a lighter body, but blending and straining the tomato mixture can still produce a smooth sauce.
Can I make Paneer Butter Masala without cream?
Yes.
The curry will still work with butter and cashews.
Use slightly less water so the gravy retains enough body.
Can Paneer Butter Masala be made ahead?
Yes.
Store the cooked curry in the refrigerator and reheat it gently.
Avoid prolonged boiling during reheating because the paneer can become firm.
Can I freeze Paneer Butter Masala?
The curry can be frozen, but the texture of the cream and paneer may change after thawing.
For the best texture, refrigeration for short term storage is preferable.
Recipe Notes
Use ripe tomatoes with good colour and flavour.
Soak packaged paneer in warm water before cooking.
Cook the tomato mixture until completely soft.
Blend thoroughly.
Strain the gravy for a finer restaurant style result.
Add cream over low heat.
Keep the final paneer simmer short.
Add kasuri methi and garam masala near the end.
Let the curry rest for a few minutes before serving.
Storage
Allow the cooked curry to stop steaming before transferring it to a suitable container.
Refrigerate promptly.
Reheat only the amount you plan to eat.
Warm it gently and add a small splash of water if the gravy has become too thick.
Avoid repeatedly reheating the entire batch.
