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A traditional North Indian recipe, this velvety-smooth, richly-spiced paneer butter masala features a creamy, aromatic tomato and cashew-based sauce. This restaurant-style dish is easy to make at home in less than an hour, and it freezes well so it’s great for meal prep.
When I want a change from my all-time favorite chicken makhani, I usually go for paneer butter masala. The gravy is very similar (if not the same), but chicken is replaced with paneer. If you’re not familiar with paneer, it’s also called Indian cottage cheese. It’s a fresh (non-aged), soft cheese that holds its shape when warm and has a mild milky, subtly nutty flavor and soft, slightly chewy texture. Because it’s so mild, it complements the rich flavor of curry beautifully.
I had the absolute best paneer butter masala of my life a few years ago from a tiny hole-in-the-wall place while visiting a friend in Chicago (which I wish I could remember the name of!). It was run by a lovely Punjabi woman who was the owner and the only one there; she was crushing it! Her paneer makhani was velvety-smooth with a balanced sweet, tangy, and spicy flavor, and incredibly rich with soft pieces of paneer. In order to get my fill, I had it about five times in the span of ten days! Each time I ate it with a spoon, no rice or naan needed because its flavor was so good I didn’t want anything to mute it. This recipe is my wink-and-nod to that culinary masterpiece.
Why You’ll Want This Recipe on Repeat in Your Kitchen
- Budget-friendly. If I ordered Indian food every time a craving hit, I would be absolutely broke, lol! Once you learn how to make your restaurant favorites at home, you’ll save a ton of money.
- Meal prep-friendly. This dish freezes and reheats beautifully. I like to portion it into 2-cup capacity containers before freezing so I can thaw as many servings as I need anytime I’m in the mood for it.
- Special-diet friendly. As written, this dish is gluten free. And with 17 grams net carbs per serving, it’s relatively low in carbohydrates. You can reduce the carbs even more by using keto brown sugar instead of coconut sugar or regular brown sugar.
Ingredients
Breaking It Down
Ingredients Explained
In this section I explain the ingredients and give substitution ideas where applicable. For the full recipe (including the ingredient amounts), see the recipe card below.
Paneer Makhani Gravy Ingredients
- Clarified butter – Also known as ghee. We create a rich, flavorful base by sautéing onion in clarified butter.
- Onion – Onion creates a deep savory base flavor with subtle earthy sweetness.
- Salt and black pepper – These pantry staple seasonings make sure our curry isn’t bland.
- Jalapeños, garlic, and ginger – This combination is a flavorful powerhouse with heat, savory earthy complexity, and deep aroma.
- Bay leaf, garam masala spice mix, coriander, cumin, crushed red pepper flakes, cinnamon, cardamom, cloves, and nutmeg – This is the spice blend we use to create a well-balanced, aromatic, complex curry.
- Ground fenugreek seed – Fenugreek is as really unique spice. It has a sweet flavor similar to caramel or maple, but with a bitter undertone. It’s a classic ingredient that beautifully elevates the flavor of many Indian curry dishes.
- Coconut sugar – This provides a hint of caramel-like sweetness to help create a balanced flavor profile. Instead of coconut sugar, you can use regular light brown sugar or keto brown sugar.
- Water – You can use broth or stock if you prefer.
- Canned diced tomatoes – Add the juices here as well. If you don’t have diced tomatoes on hand, crushed tomatoes will also work here (just reduce the water a touch).
- Cashews – Cashews are a classic ingredient in some Indian curries, including paneer makhani. They act as a thickener (because they’re blended into the sauce), and help create a rich, velvety-smooth gravy. (TIP: To bump up the cashew’s rich, nutty flavor, add them along with the jalapeño, garlic, and ginger so they toast a bit.)
- Tomato paste – Tomato paste is a really simple ingredient that serves a few purposes in curries like this: 1) it contributes to the beautiful red/orange color, 2) it adds an underlying sweet/tangy flavor, and 3) it adds body and helps thicken the gravy.
- Paneer cheese – Cut the paneer into 3/4-inch thick cubes or a little smaller if you prefer. (TIP: Look for paneer in the fancy cheese area of the regular grocery store (I get mine at Publix near the imported cheeses). If they don’t have it there, check for it at a local Indian grocery store or a speciality cheese shop. You can also find paneer on Amazon.)
- Fresh lime juice – Or fresh lemon juice. A little bit of citrus juice added at the end provides bright tartness that rounds out the flavor profile and wakes up the dish.
- Heavy whipping cream – For rich flavor and creamy texture.
Garnishes
- Salted butter – This puts the butter in butter paneer! A generous pat of salted butter is placed on top of the curry right before serving. It melts down on top and adds rich, salty flavor.
- Heavy whipping cream – I like to drizzle a little bit of heavy cream on top just for a pop of contrasting color.
- Fresh cilantro, red onion, and jalapeño – For contrasting color and sharp flavor to cut through the richness.
Serving Suggestions
- Prepared basmati rice
- Sourdough naan
- Salad shirazi
Instructions
- Aromatics. Add the ghee to a 5-quart Dutch oven (or other similar pot) over medium heat. Once melted, add the onion, salt, and black pepper, and sauté until softened but not browned, about 6 to 7 minutes, stirring occasionally. Add the jalapeño, garlic, and ginger, and sauté 1 minute, stirring constantly.
- Toast the spices. Add the bay leaf, 2 1/2 teaspoons garam masala, coriander, cumin, crushed red pepper flakes, cinnamon, cardamom, cloves, nutmeg, and fenugreek. Sauté until fragrant, about 30 seconds, stirring constantly.
- Cook. Stir in the coconut sugar, water, diced tomatoes with juices, cashews, and tomato paste. Bring up to a boil, cover the pot, turn the heat down to keep it at a gentle boil, and cook until the sauce is slightly thickened, about 15 to 20 minutes, stirring occasionally.
- Soften the paneer. While the gravy cooks, soften the paneer. To do so, bring a kettle of water up to a boil. Put the cubed paneer into a heat-safe bowl and cover with hot (not boiling) water. Let it soak until softened, about 15 minutes. Drain.
- Blend the gravy. Once the gravy is done cooking, remove it from the heat. Carefully blend it using an immersion blender or in batches in a regular blender with the top vented.
- Finishing touches and serve. Pour the blended gravy back into the pot. Stir in the lime juice, then the creamand remaining 1/2 teaspoon garam masala, and lastly the soaked, drained paneer. Transfer the gravy to a serving dish. While it’s still hot, add the butter on top. Drizzle on the cream and sprinkle on the cilantro, red onion, and jalapeño. Serve along with prepared basmati rice and/or naan.
Storage
Store leftovers in an airtight container in the fridge for up to 3 days or in the freezer for up to 3 months.
Tips For the Best Paneer Butter Masala Recipe
- Before adding the paneer to the gravy, soak it in hot water to soften it and prevent it from becoming rubbery. The water should be hot but not boiling. Soak cubed paneer until it’s softened, about 10 to 20 minutes, depending on how hard your cheese is.
- One of the best things about making curry at home is that you can customize it exactly how you want to. For example, if you like it more or less spicy-hot, adjust the jalapeños and crushed red pepper flakes. Or if you prefer it on the thinner side, add a splash more water.
Frequently Asked Questions
Paneer tikka masala is made with grilled paneer, which lends a smokiness to the dish. Additionally, it’s more tomato-forward, a bit spicier, and has texture in the gravy. On the other hand, paneer butter masala (or paneer makhani) uses raw paneer cheese and is a bit milder on the spice level. Also, butter paneer has a silky-smooth pureed gravy that’s rich, creamy, and buttery thanks to butter, cream, and cashews.
That depends on the recipe. Here you don’t have to pre-soak the cashews because we simmer them in the gravy before blending it smooth.
No. However, these two items look very similar. Paneer is a type of fresh curd cheese (like farmers cheese and cottage cheese) that’s compressed into a block. It has a mild, creamy flavor and holds its shape well when cooked. On the other hand, tofu is made from soy milk, so it’s vegan. Tofu is a blank canvas in terms of taste, and because of its spongy texture it easily absorbs flavor.
More Favorite Indian Recipes to Make
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Paneer Butter Masala Recipe (Paneer Makhani)
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Ingredients
Gravy:
- 2 tablespoons clarified butter ghee
- 1 large onion diced
- 3/4 teaspoon salt
- 1/4 teaspoon black pepper
- 2 jalapeños seeded and minced (more or less to taste)
- 4 large cloves garlic crushed
- 2 tablespoons freshly-grated ginger
- 1 bay leaf
- 3 teaspoons garam masala spice mix divided into 2 1/2 teaspoons + 1/2 teaspoon
- 1 1/2 teaspoons ground coriander
- 3/4 teaspoon ground cumin
- 1/2 teaspoon crushed red pepper flakes (more or less to taste)
- 1/4 teaspoon ground cinnamon
- 1/8 teaspoon ground cardamom
- 1/8 teaspoon ground cloves
- 1/8 teaspoon ground nutmeg
- 1/2 teaspoon ground fenugreek seed
- 2 teaspoons coconut sugar or light brown sugar (more or less to taste)
- 2 1/2 cups water
- 14.5 ounce can diced tomatoes with juices
- 1/4 cup raw cashews
- 1/4 cup tomato paste
- 12 ounces paneer cheese cut into 3/4-inch cubes
- 1 tablespoon fresh lime juice or fresh lemon juice
- 7 tablespoons heavy whipping cream
Garnishes:
- 1 tablespoon salted butter
- 1 tablespoon heavy whipping cream
- 1/4 cup fresh cilantro leaves
- 1 tablespoon minced red onion
- 1 tablespoon minced jalapeno
Serving Suggestions (Optional):
Instructions
- Aromatics. Add the ghee to a 5-quart Dutch oven (or other similar pot) over medium heat. Once melted, add the onion, salt, and black pepper, and sauté until softened but not browned, about 6 to 7 minutes, stirring occasionally.Add the jalapeño, garlic, and ginger, and sauté 1 minute, stirring constantly.
- Toast the spices. Add the bay leaf, 2 1/2 teaspoons garam masala, coriander, cumin, crushed red pepper flakes, cinnamon, cardamom, cloves, nutmeg, and fenugreek. Sauté until fragrant, about 30 seconds, stirring constantly.
- Cook. Stir in the coconut sugar, water, diced tomatoes with juices, cashews, and tomato paste. Bring up to a boil, cover the pot, turn the heat down to keep it at a gentle boil, and cook until the sauce is slightly thickened, about 15 to 20 minutes, stirring occasionally.
- Soften the paneer. While the gravy cooks, soften the paneer. To do so, bring a kettle of water up to a boil. Put the cubed paneer into a heat-safe bowl and cover with hot (not boiling) water. Let it soak until softened, about 15 minutes. Drain. (See Notes.)
- Blend the gravy. Once the gravy is done cooking, remove it from the heat. Carefully blend it using an immersion blender or in batches in a regular blender with the top vented.
- Finishing touches and serve. Pour the blended gravy back into the pot. Stir in the lime juice, then the cream and remaining 1/2 teaspoon garam masala, and lastly the soaked, drained paneer.Transfer the gravy to a serving dish. While it's still hot, add the butter on top. Drizzle on the cream and sprinkle on the cilantro, red onion, and jalapeño. Serve along with prepared basmati rice and/or naan.
Notes
- Softening the Paneer: The water should be hot but not boiling. Soak it until it’s softened, about 10 to 20 minutes, depending on how hard your cheese is.
- Storage: Store leftovers in an airtight container in the fridge for up to 3 days or in the freezer for up to 3 months.
- Nutrition Information: The nutritional information for this recipe was calculated with the garnishes but without the optional serving suggestions.
Nutrition
Nutritional information is automatically calculated and should be used as an approximate.
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I’m the writer, recipe developer, photographer, and food stylist behind this blog. I love finding the human connection through something we all do every day: eat! Food is a common ground that we can all relate to, and our tables tell a story. It’s my goal to inspire you to get in the kitchen, try something new, and find a favorite you didn’t know you had.
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