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Butter paneer in a pan with naan.
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5 from 12 votes

The Best Butter Paneer Recipe (Restaurant Flavor!)

This 30-minute Butter Paneer recipe is one of my half-Indian family's most cherished dishes. Rich, creamy and rivals an Indian restaurant.
Prep Time10 minutes
Cook Time20 minutes
Total Time30 minutes
Course: Dinner
Cuisine: Indian
Keyword: Paneer Butter Masala, Paneer Makhani
Servings: 6
Author: Jennifer Pallian BSc, RD

Ingredients

For the Paneer:

  • 12 oz package paneer
  • 1 tbsp vegetable oil
  • 1 tbsp lemon or lime juice
  • 1 tsp minced garlic or ¼ tsp garlic powder
  • 1 tsp garam masala
  • ½ tsp turmeric
  • ½ tsp cayenne or kashmiri red chilli powder
  • ½ tsp salt

​For the Butter Masala Sauce:

  • ¼ cup vegetable oil
  • 2 cups chopped onion
  • 2 tbsp finely chopped garlic
  • 1 tbsp finely grated fresh ginger
  • 2 tbsp garam masala
  • 2 tsp paprika
  • ¼ tsp cinnamon
  • ​1 1/2 tsp kosher salt
  • 1 cup diced tomatoes
  • ¾ cup heavy cream aka whipping cream
  • 2 tbsp butter

Instructions

​Marinate the Paneer:

  • In a bowl, mix the oil, lemon juice, garlic, garam masala, turmeric, cayenne powder and salt.
  • Add the paneer cubes to the bowl.
  • Gently toss them with the marinade, making sure each piece is well coated. Be careful not to break the paneer. I find it easiest to use my hands.

​Make the Sauce:

  • Heat oil over medium heat in a large saucepan or dutch oven.
  • Add onions and slowly cook until golden, reducing heat if they are getting crispy or browning quickly. This is an important flavour-building step, don't rush it.
  • Add garlic and ginger and cook until fragrant, about 1 minute.
  • Stir in garam masala, paprika, cinnamon and salt; cook 1 minute more.
  • Add tomatoes and cook 2 minutes.
  • Add cream and carefully puree using an immersion blender (or standing blender, but do it in batches or the steam will blow the top off).
  • Return sauce to saucepan and bring to a simmer. Stir in butter. Add up to 4 tbsp of water if the sauce is too thick.
  • Gently stir in paneer and cook until heated through, about 2 minutes.

Video

Notes

  • To make it ahead: 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.
  • For a lightened-up or dairy-free recipe, you can replace it with coconut milk to achieve richness and consistency.
  • You may substitute the paneer with cubed halloumi or firm tofu. If using halloumi, cut the salt in half to account for the saltiness of the cheese.
  • Store leftovers in an airtight container for up to 4 days.

Nutrition

Calories: 657kcal | Carbohydrates: 19g | Protein: 20g | Fat: 58g | Saturated Fat: 33g | Polyunsaturated Fat: 2g | Monounsaturated Fat: 10g | Trans Fat: 0.5g | Cholesterol: 147mg | Sodium: 1311mg | Potassium: 469mg | Fiber: 4g | Sugar: 8g | Vitamin A: 1652IU | Vitamin C: 18mg | Calcium: 591mg | Iron: 2mg