Deliciously rich, buttery paneer makhani features soft cubes of Indian cottage cheese in a silky smooth, beautifully spiced gravy with cream and cashews. This restaurant-style favorite is easier to make at home than you might think!
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.