Paneer Butter Masala

Last Updated on December 1, 2022 by Jennifer Pallian BSc, RD

Paneer Butter Masala, also often called Shahi Paneer, Butter Paneer Masala or Paneer Makhani, is honestly one of the most delicious recipes and is an absolute favourite in our house. Make this restaurant-style paneer butter masala and surprise yourself with how incredibly well it rivals your go-to takeout.

What is Paneer Butter Masala?

Paneer Butter Masala is a rich North Indian curry packed with paneer cubes in a tomato cream sauce with traditional Indian spices.

It is really just a vegetarian version of Butter Chicken. Most Indian restaurants even use the same rich, creamy tomato-y sauce for both dishes.

Filled with sumptuous aromas of fresh ginger and the fabulous flavor of cinnamon and mild spices, this is one Indian dish that will have you coming back for seconds, thirds, and fourths.

Why you’ll love this recipe

Is there a more comforting Indian meal? This is arguably is one of the most delicious vegetarian Indian recipes. 
It can be easily prepared at home with simple ingredients.
My recipe includes ground almonds, which impart richness and flavour (and even a pleasant texture). 
The paneer pulls in the rich, buttery sauce and makes the world a better place. It melts in your mouth.

Ingredients you’ll need

Paneer – If you’re feeling adventurous, homemade paneer is the way to go! It’s not that to make, and it tastes so yummy than store-bought paneer. Plus, it’ll make your dish that much more impressive to your guests.

Butter – It doesn’t matter if you use salted or unsalted – a few tablespoons make this recipe silky and lush.

Tomatoes – Red, ripe tomatoes not only make the paneer butter masala more visually appealing with their vibrant color, but they also add a slightly tangy flavor to the curry. Always use red, ripe tomatoes in this dish; unripe tomatoes will change the flavor of the curry for the worse, so it’s best to avoid them altogether. Substitute canned tomatoes if you can’t find good fresh tomatoes.

Onions – Onions are the star ingredient in this Paneer Butter Masala recipe, but you don’t even know they’re in there. They cook down to golden and mild and provide a natural sweetness to the sauce. They essentially melt right down and become the sauce itself.

Heavy Whipping Cream – Heavy whipping cream has a lush texture and can quickly thicken a sauce. It also adds a decadent richness, making it a key ingredient in this delicious recipe.

Herbs and Spices – I have used a spice blend of ginger, garlic, garam masala, coarse salt, and chopped cilantro for topping. The garam masala is a blend of spices that replaces the need to source individual coriander powder, turmeric, cinnamon, etc. You can also add red chillies or red chilli powder for a spicy kick.

How to make Paneer Butter Masala

Making this homemade Paneer Butter Masala really only requires a few simple steps. Cooking is sure to be a breeze with this tried-and-tested recipe.

Caramelize onions in a saucepan or dutch oven over a medium flame. This is where an important part of the flavour is developed, so take your time.
Stir in garlic, ginger and some Indian spices. Warming the spices gently for a few moments develops them more deeply and makes them more fragrant.
Add diced tomatoes and almonds and simmer. This step allows them to soften and the flavours to meld.
Add cream and blend the mixture. Puréeing the sauce creates a creamy, dreamy smooth and rich gravy.
Add sauce back to pan to simmer and add paneer. It only takes a few minutes to simmer gently and before you know it, the paneer will be full of creamy rich flavour.

Where to Find Paneer

Paneer is simply a fresh Indian cheese very similar to strained ricotta. It’s also called Indian cottage cheese. It is chewy, milky, bouncy, and super addictive.

Paneer is quite easy to make at home – it’s made simply by adding lemon juice to boiled milk, then straining and pressing.

If you want to DIY, you can hop on over to my homemade paneer recipe here – How to Make Paneer at Home: My Foolproof Step-by-Step Guide.

If you’re looking for a quicker option, not to worry – it’s pretty easily accessible in most well-stocked grocery stores, and definitely any Indian grocer.

If not making it myself, I look for a package with minimal additives (like carrageenan, guar gum, etc.).

What to serve with Paneer Butter Masala

Roti or chapati (Indian flatbread), fluffy naan, or simple basmati rice (cooked according to my viral video on how to cook rice) are both an excellent choice for dipping in this yummy masala sauce.

Tandoori chicken, saag paneer, or any favourite Indian meat dish with more sauce would complement butter masala well, if you’re hosting a bigger dinner.

Serve with Yogurt cucumber salad for a complete meal.

Make ahead instructions

Make this entertaining-worthy dish ahead of time with this time-saving tip:

Prepare the sauce up to 3 days in advance without adding cream or paneer and refrigerate it in an airtight container.
On the day of serving, reheat it until it comes to a gentle simmer then add the paneer cubes and heavy whipping cream.

Variations and substitutions

To make a vegan-friendly Paneer Butter Masala recipe, substitute paneer with tofu. Extra firm tofu is similar to paneer in taste and texture, making it an excellent replacement for a plant-based option. Swap the cream and butter for your fav vegan alternatives.
For a lightened-up or dairy-free recipe, you can replace it with coconut milk to achieve richness and consistency.
The restaurant-y flavor can be enhanced even more by adding a whole spices like a few cardamom cloves, a bay leaf, and a few cloves.
Adding bit of Kasuri methi made from dried fenugreek leaves lends additional authentic flavor to this paneer butter masala recipe.
Use cashews in place of almonds if you like.

FAQs

More Vegetarian Indian Recipes

If you haven’t noticed, love vegetarian Indian food.  You know this already if you’ve been hanging around here for a while (and if you have, thank you! I <3 you!).  My hubby is Indian, so exploring India and Indian food has been a long-time passion. To that end, here are a few more of my love-filled, and flavour-packed creations I think you may like:

Authentic Homemade Indian Chai
Coconut Curried Lentils
Best-Ever Creamy Malai Kofta
Easy Samosa Potatoes