Paneer Masala recipe (Dhaba Style Paneer Curry) with step-by-step photos and a video recipe. Quick and easy paneer recipe made with paneer, onion, tomato, and yogurt. This paneer gravy is flavored with simple Indian spices. You can make it within 30 minutes. Serve it with Roti/Naan.

Dhaba-style recipes are well known for their heavy use of oil, butter, spices, and rustic flavors. Basically, Dhaba is a roadside restaurant. Earlier only truck drivers used to visit it. These Dhaba remained 24 hours open and provided home-cooked meals for them.
We love to stop by roadside dhaba or restaurants while traveling long-distance road trips on highways. Dhabas are well known for their spicy and flavorful dishes like Dhaba Style Egg Curry, Paneer Butter Masala and Mushroom Masala. These are our family favorites and we love to have them with Naan and Jeera rice.
Table of Contents
About this recipe
In this recipe post, I am sharing how to make Paneer Masala Recipe. This paneer curry is cooked in Dhaba style. It is easy to make and tastes awesome.
Dhaba-style gravy is thick and spicy with rustic Indian flavors. However, you can adjust the spice level as per your taste.
It is made with paneer cooked in onion-tomato-yogurt-based sauce. The addition of yogurt makes it creamy. The sauce is flavored with basic Indian spices. You can serve it with Roti/Naan.
Though preparing Dhaba style dish is a time-consuming task. Cooking each ingredient until masala starts to leave oil from the sides takes some time.
But all the hard work is paid off when your dish receives appreciation from family and friends.
You may also like these other popular Dhaba-style recipes from this website
Why You Need This Recipe
- Easy step-by-step instructions with a recipe video.
- Balanced flavor – This recipe is not too spicy. You can adjust the spices as per your taste by increasing or decreasing the spices. This is the dish that your whole family can enjoy including the kids.
- This recipe is easy to customize. Check out the ingredient list below for alternative ingredients. You can add or skip the ingredients as per your taste.
- Make ahead recipe – You can make this paneer curry in advance. Let it cool down completely, and store it in an airtight container in the refrigerator. Stays good for 2 days. Reheat and serve.
- Gluten-free
Ingredients and Substitutions
- Paneer – I have used homemade Paneer to make this curry. You can use store-bought too.
- Onion, ginger, and garlic – Basics of Indian cuisine. I have used red onions and fresh ginger and garlic. You can also use ginger and garlic paste here.
- Tomatoes – I have used grated tomatoes. You can also puree the fresh tomatoes and use it.
- Yogurt – Use thick yogurt/curd. Do not use the yogurt taken out straight from the refrigerator. Let it come to room temperature and then use it.
- Whole Spices – Cumin, bay leaf, cinnamon, cardamom, and cloves. Skip if you do not have any one or two of these spices. Add whatever spices you have on hand.
- Flavoring – Turmeric powder, cumin powder, coriander powder, salt, and garam masala powder.
- Red Chili powder – I have used two red chili powders here. Kashmiri red chili powder for color and spicy red chili powder to flavor the curry.
- Gram Flour (Besan) – This is unique when it comes to authentic dhaba-style cooking. Gram flour thickens the gravy. You can substitute it with cashews, melon seeds, or almonds.
- Oil – You can use any neutral flavor cooking oil.
- Ghee/Clarified butter – This gives richness to the paneer masala curry and flavors it. You can substitute it with butter.
- Herbs – Kasuri Methi (also known as dried fenugreek leaves) flavors the dish. You can easily purchase it online or from grocery stores near you. Coriander leaves (Cilantro) are used to garnish the paneer curry. Skip if you do not have it.
For the detailed list of ingredients & their measurements, please check out the recipe card below.
Tips to make Best Paneer Masala
- Use fresh curd or yogurt. Do not use the yogurt taken out straight from the refrigerator. Let it come to room temperature and then use it.
- Roast the gram flour and then add it to the curry. Raw gram flour can spoil the curry.
- Cook each ingredient until it starts to leave oil from the sides. This ensures that the masala is cooked well and enhances the flavor.
- Ghee enhances the flavor of the curry. Do not skip it.
- Do not cut down the quantity of oil or ghee in the recipe. Dhaba-style curries have a lot of oil.
Step by step instructions with photos
Preparations
- Marinate the paneer – In a mixing bowl, combine paneer with kashmiri red chili powder, salt, and turmeric. Toss it gently to coat the masala on the paneer and set it aside.
- Chop onion, ginger, and garlic. Set it aside.
- Dry roast the Kasuri methi until aromatic and crisp. Set it aside.
- In the same pan, dry roast gram flour (besan). Roast until aromatic and lightly golden.
Making Dhaba Style Paneer Masala
- Heat 1 tsp of oil and 1 tsp of ghee in a deep bottom pan over medium-low heat.
- Fry the paneer until lightly golden on the sides. Immediately transfer it to a bowl filled with 1 cup of warm water. It will keep the paneer soft, preventing it from being dry and rubbery.
- In the same pan, add the remaining ghee and oil. Add the whole spices and saute it for a minute.
- Add onions and sauté on medium heat until onions are golden.
- Add ginger and garlic and cook it for a minute or until you see oil separating from the sides.
- Next, add turmeric powder, Kashmiri red chili powder, spicy red chili powder, coriander powder, cumin powder, and the roasted gram flour (besan). Sauté until oil starts to separate from the masala.
- Add tomatoes and salt. Combine and cook it for 5 minutes or until oil separates from the masala.
- Reduce heat and add curd/yogurt. Stir continuously and cook until it combines well with the masala and oil starts to release from the sides.
- Add water to adjust the consistency of the gravy. Cover and cook on low-medium heat for 15 minutes.
- The oil will start to float on the top. This is an indication that the masala is cooked well.
- Add paneer, garam masala powder, green chili (optional), and Kasuri methi. Cover and cook on low heat for 2 minutes. Paneer Masala is ready to serve.
- Garnish with coriander leaves. Serve hot with Roti/Naan.
Storage Suggestions
- Store the leftovers within 2 hours of cooking them.
- Let the curry cool down completely. Transfer it to an airtight container. Store it in the refrigerator. Stays good for 2 days. Reheat and serve.
- You can freeze it for longer shelf life. Stays good for a month.
Serving Suggestions
- Serve it with Roti (Indian flatbread) or Naan.
- Or pair it up with Jeera rice or Pulao.
Variations that you can try
- You can make it with Mushrooms. Substitute paneer with Mushroom.
- Add some stir-fried bell peppers to the gravy. Add it while adding paneer to the gravy.
- If you are a non-vegetarian, substitute paneer with chicken.
If you make this recipe, please leave a comment and a starred review below.
And, consider following me on social media so we can stay connected. I’m on Facebook, Pinterest, and YouTube!
Paneer Masala Recipe (Dhaba Style Paneer Curry)
Equipment
- Heavy botttom pan
Ingredients
To marinate paneer
- ½ tsp Kashmiri red chili powder (optional)
- ¼ tsp turmeric powder
- Salt to taste
- 300 gram paneer
Whole spices
- 1 bay leaf
- 2 inch cinnamon
- 4 green cardamoms
- 5 cloves
- 1 tsp cumin
To make the curry
- 2 tbsp oil
- 2 tsp ghee
- 3 onions finely chopped
- 1- inch ginger finely chopped
- 8 cloves garlic finely chopped
- ¼ tsp turmeric powder
- 1 tsp Kashmiri red chili powder (optional)
- ½ tsp spicy red chili powder
- 2 tsp coriander powder
- ½ tsp cumin powder
- 1 tbsp gram flour besan
- 4 tomatoes grated (or use pureed fresh tomato)
- salt to taste
- 3 tbsp yogurt (or curd)
- ½ tsp garam masala powder
- 1 green chili, cut into i-inch pieces (optional)
- 1 tsp Kasuri methi dried fenugreek leaves
- Coriander leaves (Cilantro) to garnish.
Instructions
Preparations
- Marinate the paneer – In a mixing bowl, combine paneer with kashmiri red chili powder, salt and turmeric. Toss it gently to coat the masala on paneer and set it aside.
- Chop onion, ginger and garlic. Set it aside.
- Dry roast the Kasuri methi until aromatic and crisp. Set it aside.
- In the same pan, dry roast gram flour (besan). Roast until aromatic and light golden.
Making Dhaba Style Paneer Masala
- Heat 1 tsp of oil and 1 tsp of ghee in a deep bottom pan over medium-low heat.
- Fry the paneer until light golden on the sides. Immediately transfer it to a bowl filled with 1 cup of warm water. It will keep the paneer soft, preventing it from being dry and rubbery.
- In the same pan, add the remaining ghee and oil. Add the whole spices and saute it for a minute.
- Add onions and sauté on medium heat until onions are golden.
- Add ginger and garlic and cook it for a minute or until you see oil separating from the sides.
- Next, add turmeric powder, Kashmiri red chili powder, spicy red chili powder, coriander powder, cumin powder, and the roasted gram flour (besan). Sauté until oil starts to separate from the masala.
- Add tomatoes and salt. Combine and cook it for 5 minutes or until oil separates from the masala.
- Reduce heat and add curd/yogurt. Stir continuously and cook until it combines well with the masala and oil starts to release from sides.
- Add water to adjust the consistency of the gravy. Cover and cook on low-medium heat for 15 minutes.
- The oil will start to float on the top. This is an indication that the masala is cooked well.
- Add paneer, garam masala powder, green chili (optional) and Kasuri methi. Cover and cook on low heat for 2 minutes. Paneer Masala is ready to serve.
- Garnish with coriander leaves. Serve hot with Roti/Naan.
Video
Notes
- Do not fry the Paneer cubes in oil for a long time. Just one minute on each side and immediately take it out in a bowl filled with warm water. If fried for a long time the Paneer cubes will turn rubbery and hard.
- Use fresh curd or yogurt. Do not use the yogurt taken out straight from the refrigerator. Let it come to room temperature and then use it.
- Roast the gram flour and then add it to the curry. Raw gram flour can spoil the curry.
- Cook each ingredient until it starts to leave oil from the sides. This ensures that the masala is cooked well and enhances the flavor.
- Ghee enhances the flavor of the curry. Do not skip it.
- Do not cut down the quantity of oil or ghee in the recipe. Dhaba-style curries have a lot of oil.
Tried it yesterday, it was so delicious. Thanks for the recipe. Keep posting more.
Made it!!! Love it. Excellent share.
Lovely recipe and well laid out. I tried it and added a teaspoon of tamarind & date sauce to give a little lift and finished off with some fresh coriander and squeeze of lime. Very yummy with a tandoori roti!
Thanks. Ya true! tastes good with tandoori roti.