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    Home » Recipes » Curry

    Butter Paneer Masala Recipe

    Published: Jul 28, 2022

    Jump to Recipe·Print Recipe
    Paneer Butter Masala aka Butter Paneer Recipe Pin

    I don’t think there is any dish that combines indulgence and minimal effort quite like this Butter Paneer Masala, also known as Paneer Butter Masala. It’s packed with flavor without being too overpowering on your palette. There’s nothing like devouring this yummy masala gravy with juicy bits of paneer in every mouthful. How can anything beat that?

    The key to a good butter paneer masala is to use fresh, ripe tomatoes and to cook the sauce until it is nice and thick. I like to add a bit of heavy cream at the end, but you can omit it if you want to keep this curry vegan.

    If you can’t find paneer, you can substitute tofu. Just make sure to press the tofu for at least 30 minutes before cooking to remove as much water as possible. You can also use pre-pressed tofu that is sold in some supermarkets.

    Take me to:
    • 🥘 About Paneer Butter Masala
    • 📋 Ingredients
    • 🍳 How to make
    • 🧾 Substitutions
    • 📖 Variations
    • 🥢 Equipment
    • 🌡️ Storage
    • 💭 Top tip
    • 📋 Butter Paneer Masala
    • 💬 FAQ
    • ♨️ Food safety
    • Comments

    🥘 About Paneer Butter Masala

    Paneer Butter Masala or Butter Paneer is one of the world’s most popular and loved paneer dishes. The name of the recipe is pretty self-explanatory. It’s got beautiful cubes of paneer (cottage cheese) coated in complexly flavorful yet velvety masala gravy with the lusciousness and goodness of butter. And the best part? It hardly takes 45 minutes to make and tastes like you’ve been going at it for hours and hours. What else does one want!

    Is Paneer Butter Masala the same as Paneer Makhani?

    This is a very commonly asked question. People often confuse Paneer Butter Masala and Paneer Makhani, and understandably so. The two recipes have a lot of overlap in their ingredients and methods. But that’s the beauty of Indian cuisine. It is all about the proportions and ratios in which these ingredients are added. This difference in ratios gives an entirely different end product. Paneer Makhani has a smooth gravy with a predominantly sweet taste with undertones of savory and sour.

    On the other hand, Paneer Butter Masala has a fairly complex flavor. It packs a punch of savory and spice with a very faint sweet undertone. As a result, the two preparations taste poles apart. 

    Difference between Paneer Butter Masala and Paneer Tikka Masala

    Paneer Tikka Masala has to be one of the most glorified Indian food recipes. And the most surprising part? Paneer Tikka Masala is more British than it is Indian. It has a fascinating history. Do let me know if you’d like to learn more about it. 

    But, visually speaking, the two recipes have some noticeable differences. In Paneer Tikka Masala, we add tandoori marinated paneer tikka to the rich and dark tomato-based gravy. The paneer is prepared by marinating it in a yogurt-based spice mix and is then cooked over a tandoor or a coal-fired grill, giving it a smoky char. 

    On the other hand, in Paneer Butter Masala, we use raw paneer cubes soaked in warm water to make them juicy and soft. These pieces of paneer are then added to a tomato and onion-based gravy, which is comparatively light and bright in color. 

    Love curries and looking for inspirations? Check out more gravy-based Indian curries here.

    Why is this recipe special?

    I can think of a billion reasons why this recipe is so unique and why you should definitely not miss out on it. But here are my top picks:

    1. One Recipe, Multiple Uses: This recipe’s base or gravy is exceptionally dynamic and multipurpose. You can easily switch the paneer with many things, be it chicken, mushrooms, tofu, eggplant, or any vegetable you like. As a result, this one recipe opens the door for endless recipes. It’s a steal.
    2. An Explosion of Flavor: It packs a punch. The gravy has such complex and well-developed flavors that it will surprise you.
    3. It hardly takes time: This beautiful Paneer Butter Masala can be made in under 45 minutes and tastes like you’ve been stirring it for at least a few hours. 
    4. It’s universal: I have never encountered a person who does not like this recipe. Whether you love Indian cuisine or are trying it for the first time, this recipe is for you. 
    5. Very customizable and easy to follow: You can easily alter the recipe depending on your preference and choice. Whether it’s the spice level or the richness of the gravy. You can do it your way.

    📋 Ingredients

    All the ingredients are super simple and can easily be found at any Indian supermarket or grocery store. 

    Ingredients for Butter Paneer Masala

    Some of the key ingredients are:

    • Ghee and Unsalted Butter: You can easily skip the ghee and use just butter. 
    • Spices: All the spices are easy to find, and if you’re not too fond of a particular spice, skip it.
    • Onion, Tomato, Ginger, and Garlic: I recommend using fresh ones instead of pastes and purees. It makes a massive difference to the flavor. 
    • Red and Green Chili: If you don’t like spice, feel free to skip them entirely. Or, if you like things extra spicy, add more. 
    • Cashew Nuts: These give a great body to the gravy. However, if you have nut allergies, you can replace it with raw pine nuts or sesame paste (tahini).
    • Paneer (Cottage Cheese): Try to get fresh paneer. If you can’t find it, you can always opt for the packaged frozen ones. If you want to skip paneer, replace it with tofu, mushrooms, chicken, or any vegetable you like. 

    See recipe card for quantities.

    🍳 How to make

    To make the Paneer Butter Malasa, we’ll first prepare the yogurt mixture, then prepare the paneer and finally make the butter gravy.

    Mixing spices with yogurt

    1. To make the yogurt mixture. Mix the yogurt, coriander powder, red chili powder, and turmeric powder in a bowl.

    Mixing butter with spiced yogurt mixture

    2. Then add the butter and give it a light mix. Don’t worry if the butter doesn’t get mixed properly. It’s fine. Keep it aside. 

    Paneer cubes soaked in a bowl of warm salty water

    3. To prep the paneer, cut the paneer into 1-inch X 1-inch cubes. Soak the paneer in a bowl of warm water with ½ teaspoon salt. Let it sit for about 15 minutes.

    Bowl of soften and seasoned paneer

    4. Then drain the salty water. Keep the paneer in a covered bowl until needed.

    Adding whole spices to a pan of heated ghee

    5. Take a heavy-bottomed pan and set it on medium heat. Put the ghee in it. Once it melts, add the bay leaves, green cardamoms, cloves, and cinnamon stick. Sauté on medium heat for 20 seconds.

    Adding aromatics to the pan

    6. Then add the crushed garlic, chopped ginger, and sliced onions to the pan. Sauté them on medium heat until the onions turn translucent. Continue to stir them.

    Adding cashews to the pan to make butter masala gravy

    7. Now add the green chili, dry red chili, and cashew nuts. Sauté them for two minutes.

    Adding yogurt mixture to the softened onion

    8. Reduce the flame to low and add the yogurt mixture. Stir and cook it for about a minute. Hint: It is important to keep the heat low to prevent the yogurt from cuddling.

    Tomatoes being cooked with yogurt, onions and spices

    9. Add the chopped tomatoes and increase the heat to medium-high. Sauté it for about 2 minutes or until the water from the tomatoes gets released and bubbles.

    tomatoes, onion and spices being cooked in a pan

    10. Now add the salt and red chili powder. Cook for a minute and add the water. Let it come to a boil. Reduce the heat to medium-low. Then close the lid and cook until the tomatoes start to disintegrate. Stir it occasionally. 

    Whole spices removed from the pan with butter masala gravy

    11. Remove the lid and turn off the heat. Finally, remove all the whole spices from the gravy (bay leaf, cloves, cardamom, cinnamon).

    Grinded Butter masala gravy going through a sieve

    12. Now grind this gravy into a smooth paste using an immersion blender or food processor. Then strain it through a sieve. 

    Glossy butter masala gravy in a pan

    13. Pour the gravy back into the pan and turn the heat on low. Add the honey and butter. Mix it until the butter melts, and the gravy starts looking glossy. 

    Adding Kasuri methi to Butter Masala gravy

    14. Crush some dried fenugreek leaves (Kasoori methi) on top.

    Softened paneer added to a pan of butter masala gravy

    15. Now turn off the heat. Next, add the prepped paneer pieces and mix until they get coated in the gravy.

    Drizzle of yogurt on a serving dish full of Paneer Butter Masala

    16. Now, drizzle some yogurt on top and sprinkle some fresh coriander to give it a final garnish.

    Your mouthwatering Paneer Butter Masala is ready to serve!

    🧾 Substitutions

    Here are a few substitutions and alterations you can make to this Paneer Butter Masala Recipe:

    • Paneer: You can easily replace the paneer with chicken, mushrooms, cauliflower, or any vegetable or protein you like. 
    • Tomatoes: In case you’re not able to find ripe tomatoes, you can replace them with a tomato puree (not paste!)
    • Chili Powder: If you want to skip the chili powder without losing the bright color of the gravy, simply add tomato ketchup instead. 
    • Cashew Nuts: The cashew nuts can be substituted with pine nuts or sesame paste (tahini) to ensure the same flavor and richness.
    • Honey: Honey can be replaced with sugar, agave syrup, or even light maple syrup. 
    • Whole Spices: All the whole spices can be replaced with powdered versions of those spices or Garam Masala. 

    📖 Variations

    This recipe can easily be customized to serve your personal taste.

    • Spicy – add more red chili powder or an extra green chili pepper while cooking to imbue heat into the dish
    • Vegan – replace paneer with tofu, yogurt with coconut cream and ghee/butter with vegan fat
    • Kid friendly – add about ¼ cup of whipping cream to make it creamier and less spicy. The kids will love this addition.

    🥢 Equipment

    • Kadai or Heavy-bottomed Pan (with lid)
    • Measuring Cups and Spoons
    • Spatulas
    • Sieve
    • Immersion Blender or Food Grinder
    • 2 Prep Bowls
    • Cutting Board and Knife

    🌡️ Storage

    Store it in a covered container in your refrigerator for up to 3 days.

    You can always prepare the gravy in advance and store it in the refrigerator for up to 4 days. But make sure you add the paneer right before serving.

    You can freeze the Butter Masala gravy (without Paneer) in an airtight container for up to 2 months. When you are ready to use the gravy, make sure not to reheat the gravy in microwave. Instead, reheat the gravy on stope top and add the paneer just before serving. If you freeze the paneer with the gravy, it will turn chewy and tough.

    💭 Top tip

    Here are a few things to keep in mind to ensure a successful recipe:

    1. Patience is vital. Ensure you properly sauté the onions to get a deep and well-rounded flavor. 
    2. Make sure you remove the whole spices before grinding the paste. This helps ensure the bright color and smooth texture. The gravy will turn slightly brown if you don’t remove the whole spices.
    3. The yogurt should be at room temperature to ensure it does not cuddle while cooking.
    4. In case you want to speed up the process, take out the ghee and butter from the refrigerator an hour earlier so that they are soft and pliable when you use them. 
    5. Make sure you use nice and ripe tomatoes as they provide a rich flavor and color to the gravy. 
    Print
    clock clock iconcutlery cutlery iconflag flag iconfolder folder iconinstagram instagram iconpinterest pinterest iconfacebook facebook iconprint print iconsquares squares iconheart heart iconheart solid heart solid icon
    Butter Paneer Masala in a serving dish

    📋 Butter Paneer Masala

    Print Recipe
    Pin Recipe

    There isn’t any dish that combines indulgence and minimal effort quite like this Paneer Butter Masala recipe. It’s packed with flavor without being too overpowering on your palette. There’s nothing like devouring this yummy masala gravy with juicy bits of paneer in every mouthful. How can anything beat that?

    • Total Time: 35 minutes
    • Yield: 4 1x

    Ingredients

    Units Scale

    For the Butter Gravy:

    • 3 tbsp – Ghee (clarified butter)
    • 1 – Bay Leaves
    • 2 – Green Cardamom Pods (Elaichi)
    • 2 – Cloves (Laung)
    • ¼ tsp – Cinnamon Powder (or 1-inch piece)
    • 4 cloves – Garlic (crushed)
    • 1 inch – Fresh Ginger (peeled and chopped)
    • 2 (medium) – Onions (roughly sliced)
    • 1 – slit Green Chili (optional)
    • 1 – Dry Red Chili (optional)
    • 15–16 – Cashew Nuts
    • 6–7 (medium) – Tomatoes (roughly chopped)
    • to taste salt
    • 1 tsp – Kashmiri Red Chili Powder (or Mild Paprika Powder)
    • 1.5 cups – Water
    • 2 tbsp – Honey (or sugar)
    • 1 tbsp – Unsalted Butter (optional)
    • 1 tbsp – Dried Fenugreek Leaves (Kasoori methi)

    For the Yogurt Mixture

    • 4 tbsp – Yogurt
    • 1.5 tsp – Kashmiri Red Chili Powder (or Mild Paprika Powder)
    • 1 tbsp – Coriander Powder
    • 1 pinch – Turmeric Powder
    • 2 tbsp – Butter

    For the Paneer (Cottage Cheese)

    • 9 oz – Fresh Paneer (Cottage Cheese)
    • 2 cups – Warm Water
    • 1 tsp – Salt

    For Garnishing

    • 10–12 leaves – Fresh Coriander
    • 2 tbsp – Yogurt (whisked until smooth)

    Instructions

    1. To make the yogurt mixture. Mix the yogurt, coriander powder, chili powder, and turmeric in a bowl.
    2. Then add the butter and give it a light mix. Don’t worry if the butter doesn’t get mixed properly. It’s fine. Keep it aside. 
    3. To prep the paneer, cut the paneer into 1-inch X 1-inch cubes. Soak the paneer in a bowl of warm water with ½ teaspoon salt. Let it sit for about 15 minutes.
    4. Then drain the salty water. Keep the paneer in a covered bowl.
    5. Take a heavy-bottomed pan and set it on medium heat. Put the ghee in it. Once it melts, add the bay leaf, green cardamom pods, cloves, and cinnamon powder. Sauté on medium heat for 20 seconds.
    6. Then add the crushed garlic, chopped ginger, and sliced onions to the pan. Sauté them on medium heat until the onions turn translucent. Continue to stir them.
    7. Now add the green chili, dry red chili, and cashew nuts. Sauté them for two minutes. 
    8. Reduce the flame to low and add the yogurt mixture. Stir and cook it for about a minute. It is important to keep the heat low to prevent the yogurt from cuddling.
    9. Add the chopped tomatoes and increase the heat to medium-high. Sauté it for about 2 minutes or until the water from the tomatoes gets released and bubbles.
    10. Now add the salt and red chili powder. Cook for a minute and add the water. Let it come to a boil. Reduce the heat to medium-low. Then close the lid and cook until the tomatoes start to disintegrate. Stir it occasionally. 
    11. Remove the lid and turn off the heat. Finally, remove all the whole spices from the gravy (bay leaf, cloves, cardamom, cinnamon).
    12. Now grind this gravy into a smooth paste using an immersion blender or food processor. Then strain it through a sieve. 
    13. Pour the gravy back into the pan and turn the heat on low. Add the honey and butter. Mix it until the butter melts, and the gravy starts looking glossy. 
    14. Crush some dried fenugreek leaves on top.
    15. Now turn off the heat. Next, add the prepped paneer pieces and mix until they get coated in the gravy.
    16. Now, drizzle some yogurt on top and sprinkle some fresh coriander to give it a final garnish.

    Notes

    Here are a few things to keep in mind to ensure a successful recipe:

    1. Patience is vital. Ensure you properly sauté the onions to get a deep and well-rounded flavor. 
    2. Make sure you remove the whole spices before grinding the paste. This helps ensure the bright color and smooth texture. The gravy will turn slightly brown if you don’t remove the whole spices.
    3. The yogurt should be at room temperature to ensure it does not cuddle while cooking.
    4. In case you want to speed up the process, take out the ghee and butter from the refrigerator an hour earlier so that they are soft and pliable when you use them. 
    5. Make sure you use nice and ripe tomatoes as they provide a rich flavor and color to the gravy. 
    • Author: Gopi
    • Prep Time: 15 Minutes
    • Cook Time: 20 Minutes
    • Category: Curry
    • Cuisine: Indian
    • Diet: Vegetarian

    Keywords: Paneer curry, Vegetarian curry, Indian Curry

    Did you make this recipe?

    Share a photo and tag us — I can’t wait to see what you’ve made!

    💬 FAQ

    Can we prepare this recipe in advance?

    Yes. You can always prepare the gravy in advance. However, I would recommend adding the paneer right before consuming.

    Can Butter Masala Gravy be used for other dishes?

    Yes. The paneer can be switched with any protein or vegetable. Just replace the paneer with chicken, mushrooms, cauliflower, or any vegetable or protein you like.

    Can the butter in the recipe be skipped?

    Absolutely. However, the gravy will lose out on its lusciousness and richness. 

    ♨️ Food safety

    It is important to follow good hygiene in the kitchen. Please remember these health and safety tips:

    • Cook to a minimum temperature of 165 °F (74 °C)
    • Do not use the same utensils on cooked food, that previously touched raw meat
    • Wash hands after touching raw meat
    • Don’t leave food sitting out at room temperature for extended periods
    • Never leave cooking food unattended
    • Always have good ventilation when using a gas stove

    See more guidelines at USDA.gov.

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    Hello!

    Hi, I'm Gopi! A mom running a multi-generation kitchen with a foodie son and a culinary expert mother-in-law. Hoping to translate and preserve the grandma's recipes, remedies and tips for running an efficient, modern Indian kitchen for the next generation of home chefs.

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