Shahi Paneer recipe | how to make shahi paneer

Shahi Paneer recipe made with paneer cooked in a rich and creamy tomato-based gravy, lightly spiced with aromatic Indian spices. You can make this popular restaurant-style paneer gravy within 30 minutes. A delicious paneer gravy recipe from Mughlai cuisine served with roti, paratha, or rice.

This north Indian paneer gravy is prepared with slight variations throughout India. The color of the gravy of Shahi paneer is white, yellow, or orange, depending upon the ingredients used to make the gravy.

What is Shahi Paneer?

Shahi Paneer is a delicious Paneer gravy from Mughlai cuisine. It is a popular north-Indian paneer dish served in restaurants.

 The term “Shahi” means Royal. This paneer dish is prepared with dry fruits, ghee (clarified butter), saffron, and cream that makes the gravy rich, creamy, and royal.

These ingredients are commonly used in the food prepared for Mughal emperors. That’s why it is called Shahi.

Paneer refers to Indian cottage cheese. It is prepared by curdling hot milk with lemon juice (or vinegar). The mixture is drained in a muslin cloth that separates the milk solids from the whey. The excess water is pressed out. Paneer is ready.

Difference between Shahi Paneer and Paneer Butter Masala

The ingredients and methods to prepare Shahi Paneer and Paneer Butter Masala are the same. The only difference is in the taste.

Shahi Paneer is sweet compared to Paneer Butter Masala. Paneer butter masala is mildly spicy.

Also, Shahi Paneer has a lot of cream in it, while Paneer butter masala has a lot of butter.

About this recipe

In this recipe post, I am sharing restaurant-style Shahi Paneer gravy that is orange in color. This is an easy paneer recipe and tastes amazing. You can make this paneer gravy easily at home.

In this paneer recipe, I have used cashew and almonds instead of using only cashews. Traditional Shahi Paneer recipe includes a lot of cream, which makes the gravy rich.

Here, I am using yogurt to replace cream. So, instead of using all cream, I am using more yogurt and less cream. Yogurt is a healthy alternative to cream. It makes the gravy rich and creamy. So, definitely it is a healthy paneer dish.

Also, I skipped using saffron. Saffron gives a bright orange color to the dish with a beautiful flavor. However, you can add it if you have it.

Recipe features

• Easy to customize – You can see the ingredient list below for alternative ingredients.
• Make ahead recipe - You can make it ahead of time. Store it in an airtight container in the refrigerator. Stays good for a day.
• Meal-prep - You can make the gravy in advance and store it in the freezer. Whenever ready to consume just heat the gravy and add the paneer cubes. Cook for 2 minutes and it is ready.

Shahi Paneer Recipe Ingredients

• Paneer - Use fresh Paneer. I prefer to use Malai Paneer for its soft texture. You can also use homemade paneer. 
• Whole Spices - Green cardamom, black cardamom, cloves, and cinnamon. You can skip addition of black cardamom. But add the other whole spices.
• Nuts - Cashew and almonds. I have used a combination of cashew and almonds here. You can use only cashews or almonds. But use any one. Addition of nuts helps to thicken the gravy.
• Vegetables - Onion, ginger, garlic, green chilies and tomatoes. They are the basics of Indian curry. You can skip addition of green chilies if you prefer less spicy.
• Flavoring - Salt, Kashmiri red chili powder, coriander powder, and sugar. You can use normal red chili powder to substitute Kashmiri red chili powder but add it as per taste. You can substitute sugar with honey.
• Dairy - Clarified butter (ghee), Paneer, yogurt and cream. Ghee gives an authentic touch to the recipe. You can substitute it with butter or oil. You can skip addition of cream as we are adding yogurt that also gives creaminess to the paneer gravy.
• Herbs - Kasuri Methi (dried fenugreek leaves). Addition of kasuri methi enhances the aroma and flavor of the curry. You can easily purchase it online or make it at home. However, if not available you can skip it or add chopped coriander leaves.

For the detailed list of ingredients & their measurements, please check out the recipe card below.

How to make Shahi Paneer recipe with step-by-step photos

Preparations:

• Heat 2 teaspoon of oil over medium high heat.
• Add whole spices and sauté for 30 seconds.
• Add sliced onions and cook until it is translucent.
• Next, add ginger, garlic and green chilies. Stir and cook for 2 minutes.
• Add cashew and almonds. Stir fry for 2 minutes.
• Add tomato and salt to taste. Cook for 3-4 minutes.
• Add Kashmiri red chili powder and coriander powder. Stir and cook for 2 minutes.
• Add ½ cup water. Cook until tomatoes are soft and mushy. It may take 5 minutes.
• Remove from heat. Let the mixture cool down completely.
• Remove black cardamom from it (optional).  Transfer the mixture to a mixer/grinder jar.
• Add yogurt and grind it to a fine paste.
• Strain the mixture for smooth restaurant style gravy. Set it aside.

Making Shahi Paneer

• Heat 2 teaspoon of clarified butter over low-medium heat.
• Add turmeric and kashmiri red chili powder. Saute for 30 seconds. Be careful not to burn it.
• Add the prepared gravy paste. Stir to combine.
• Cover and cook on medium heat until the gravy comes to a boil.
• Add paneer, cream and kasuri methi and sugar. Stir it gently.
• Taste the gravy and if required add salt.
• Cook for 2 minutes. Remove from heat. Do not cook it longer than that. Paneer if overcooked may turm hard or chewy.
• Restaurant style Shahi Paneer is ready to serve.

Cooking tips

• Use fresh Paneer. You can either use homemade paneer or store-bought.
• Use fresh yogurt to make the gravy. Fresh yogurt tastes sweet. If the yogurt is sour it will spoil the dish.
• I have used Kashmiri red chili powder in this recipe. Kashmiri red chili powder is less spicy and gives bright red color to the curry. You can use normal red chili powder but add it as per taste.
• You can skip addition of cream to the gravy. Yogurt makes the gravy creamy.
• For restaurant style smooth gravy strain the gravy. However, you can skip this step.
• Kasuri methi also known as dried fenugreek leaves gives a nice aroma and flavor to the dish. Roast it until aromatic and crush it before adding it to the gravy. Skip if not available.
• The gravy thickens after some time. Add some water and heat it to adjust the consistency.

Variations that you can try

• You can add steamed vegetables to the gravy like cauliflower, peas etc.
• Add stir fried mushroom and cooked green peas to the gravy.

Serving Suggestions

• It tastes best when served with Indian flatbread like Roti, Naan or Paratha.
• You can also serve it with Jeera rice or steamed rice.
• Serve some raita or salads on the side.

Storage suggestions

• You can store the paneer gravy, before the addition of paneer. Let the gravy come to room temperature. Transfer it to an airtight container. Freeze it. Stays good for a month.
• When ready to consume, thaw it. Heat it until piping hot, and add the paneer cubes, kasuri methi and cream. Cook for 2 minutes. Serve.
• Do not re-freeze the gravy once thawed.
• Leftover gravy can be stored in the refrigerator. Stays good for 24 hours. As we are adding yogurt to the gravy, the gravy may taste sour the next day.

Other paneer recipes you might like

• Dhaba Style Paneer Masala
• Paneer Butter Masala
• Paneer Sandwich

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!

More Indian Curry recipes

• Kashmiri Dum Aloo
• Mushroom Masala