Paneer butter masala (restaurant-style) | Easy butter paneer recipe

Paneer butter masala (also known as butter paneer) is one of the popular paneer dishes that are ordered in many Indian restaurants worldwide.

My kids love to have paneer dishes whether it is dhaba style paneer masala, shahi paneer, or paneer sandwich.

Paneer is a rich source of protein, calcium & vitamins for kids. It helps in their growth, bones & muscles development.

Among all the paneer dishes, this recipe is simple, quick & no complicated step is involved in making it.

Here's why this recipe works

• This paneer gravy recipe tastes exactly the same as served in many Indian restaurants.
• The recipe includes step by step photos & a recipe video.
• Even if you are a beginner at cooking, you can make it perfectly at home.
• Includes cooking tips to make perfect paneer gravy.

What is paneer butter masala?

It is also known as butter paneer. Butter paneer masala is a mildly spicy paneer gravy.

It is made with paneer (cottage cheese) that is cooked in buttery gravy made with onion, tomatoes, cashews & cream.

The gravy of butter paneer is rich, thick & creamy with silky soft texture & a buttery flavor.

What are the ingredients of paneer butter masala?

Ingredients to make paneer butter masala are:

• Paneer - Also known as Indian cottage cheese. Use fresh homemade paneer to make it. You can also use store-bought Malai paneer to make butter paneer. Malai paneer has a soft texture & tastes delicious. I always use Malai paneer for making most of my Paneer dishes.
• Butter - It is the main ingredient of the dish. Use a generous amount of butter to make this gravy. You can use either salted or unsalted one. I have used salted butter to make it.
• Whole spices like bay leaves & green cardamom.
• Onion, ginger & garlic (you can make it without using onion & garlic)
• Cashews & cream - It makes the gravy thick, creamier & adds richness to the gravy.
• Tomatoes - Use red, ripe & juicy tomatoes for making butter paneer. It gives a sweet flavor to the gravy & bright red color too. Do not use sour tomatoes.
• Kasuri methi (dried fenugreek leaves) & coriander leaves.
• Kashmiri red chili powder & garam masala powder.

Can I make a butter paneer without adding cream?

Yes, you can make it without adding cream. Cream adds a sweet touch and richness to the dish. You can skip adding cream & add ½ teaspoon sugar & it will taste exactly the same.

You can also add little milk instead of cream.

The creaminess in the gravy is maintained by cashews. So definitely, you can skip adding cream.

Can you make a paneer butter masala without onion & garlic?

Yes, you can make it. Just skip adding onion & garlic & the rest of the recipe will be the same.

How to make Butter Paneer

Preparations:

1. Soak paneer in hot water & keep it aside.
2. Slice onions, peel garlic & chop ginger & tomatoes.

Making the gravy paste

1. Heat 1 teaspoon oil + 1 tablespoon butter in a heavy bottom pan on a low flame.
2. Saute the whole spices for a minute.
3. Add onion, ginger & garlic. Saute until onions are lightly golden.
4. Add cashews, tomatoes & salt. Mix it well.
5. Cover & cook until tomatoes is soft & pulpy. Switch off the flame.
6. Let it cool down completely. Discard the bay leaf.
7. Transfer the contents to a mixer/grinder jar. Grind to a fine paste.
8. To make restaurant style paneer butter masala - Strain the gravy to make a smooth gravy. Keep it aside.

Cooking the butter paneer gravy

1. Heat 2 teaspoons of oil + 1 teaspoon butter in a heavy bottom pan over low heat.
2. Add 1 teaspoon Kashmiri red chili powder. Saute for a minute. This step is important as it will enhance the color of the gravy. Switch off the flame.
3. Add the prepared onion-tomato paste & mix. Now keep the flame on medium. Cook it for 3-4 minutes. Be careful the gravy will splutter.
4. Add cumin powder, coriander powder, turmeric powder & mix.
5. Cover & cook for 2-3 minutes. Stir it in between as required.
6. Add 1 cup water, garam masala powder, Kasuri methi, slit green chili & chopped coriander leaves. Mix it well.
7. Let the gravy come to a boil.
8. Add paneer, fresh cream & mix.          
9. Cover & cook for 2 minutes only. Switch off the flame.
10. Add 1 teaspoon butter & mix. Do not cook after adding butter. Butter gives a shine to the gravy & adds a buttery flavor to it.
11. Garnish it with fresh cream.
12. Serve paneer masala hot with Roti/Naan & enjoy!

Cooking Tips

1. Use fresh homemade paneer or Malai paneer for making it.
2. If using store-bought paneer or paneer that is taken out from the freezer then soak it in hot water. It will keep the paneer soft. Keep it aside for 1 hour. Once it comes to room temperature then it is ready to use. Drain off the water & add it to the gravy.
3. Kashmiri red chili powder is not spicy & gives a bright red color to the dish.
4. To make restaurant-style paneer butter masala - After making the gravy paste, strain the gravy to make restaurant-style soft & smooth gravy.
5. Kasuri methi (dried fenugreek leaves) & coriander leaves enhance the flavor of the gravy. Do not skip adding it. Always roast kasuri methi & then add it to the gravy.
6. Butter is the main ingredient of the dish. Do not skip adding butter to the gravy.
7. After adding paneer cook it for 2 minutes only. Cooking paneer longer than that can make the paneer rubbery or chewy.
8. I used malai (homemade cream) made with full-fat milk to make this dish. You can also use store-bought fresh cream.
9. You can make many variations with the same gravy base. Instead of adding paneer you can add cooked mushrooms or cooked mixed vegetables to the same gravy base.

Storage suggestions

You can cook the gravy base (i.e. before adding paneer & cream). Let it cool down completely.  Store it in the freezer. It stays good for a month.

Whenever needed take out the gravy, thaw it & heat it. Once the gravy comes to a boil, add paneer & cream. Cook for 2 minutes only. Serve hot & enjoy!

Do not freeze the gravy after adding paneer & cream. Dairy products are advised to be consumed within 48 hours.

Serving suggestions

Serve hot with (Indian flatbread) Roti/Paratha or Naan. You can also serve butter paneer with Jeera rice, veg fried rice or veg pulao.  Pair it up with onion slices & lemon wedge.

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Recipe card for butter paneer