Restaurant style paneer butter masala | Paneer butter masala recipe | How to make paneer butter masala at home

by Rumki's Golden Spoon

Restaurant-style paneer butter masala aka paneer butter masala recipe is a lip-smacking, rich, creamy, flavoured and slightly sweet Indian paneer curry recipe. It is crazily popular in India and is one of the most ordered panner curries in Indian restaurants worldwide. In this preparation, paneer chunks are simmered in buttery smooth onion-tomato-cashew nut gravy with some cream and minimal spices. This inimitable delight is mostly accompanied by butter naan, kulcha or with rice items like pulao, jeera rice, plain basmati rice etc.


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Table of Contents

About the recipe
Health Benefits of Paneer
Tips and Suggestions
Frequently Asked Questions
How to make Paneer butter masala (step wise photos)
Recipe Card



What is paneer butter masala?

Paneer butter masala recipe, the name itself expresses the complete recipe. Here PANEER is a Hindi word which refers to Indian cottage cheese, BUTTER means Makhan and MASALA means spice.

Paneer butter masala is a spectacular paneer curry where tender panner chunks are cooked in slightly sweet, smooth and buttery gravy. Paneer butter masala is not a classic recipe. It originated in restaurants. It is prepared in different restaurants in different ways. There is no hard and fast rule to preparing this worldwide popular recipe.

Basically, the paneer butter masala recipe is adopted from the worldwide popular recipe Murgh makhani which is also known as Butter chicken.

Butter chicken recipe is an Indian chicken curry which originated in North India. It was accidentally invented by chef Kundan Lal Gujral of the famous restaurant Moti Mahal in Delhi in 1948 using leftover dry chicken tandoori into a curry. Leftover chicken tandoori was simmered in creamy and spicy tomato-based gravy with butter to reuse it. But unexpectedly an outstanding dish got created. Now, this recipe has been adopted by restaurants worldwide.

It is a common trend by vegetarian north Indian restaurants and vegetarian people to prepare different dishes by adding paneer and different vegetables into the same gravy. Paneer butter masala recipe is the most popular vegetarian version of the chicken butter masala recipe.


Difference between paneer makhani and paneer butter masala

Though both the preparations are like each other but are not the same. There is a slight difference in both the recipes.

  • In the traditional paneer makhani recipe, no onion or a very less amount of onion is added with lots of tomatoes. On the other hand, in paneer butter masala generous amount of onion is added and butter-fried nicely, before adding tomatoes.
  • In paneer makhani, only less amount of whole spices are added for flavouring. On the other hand, the usage of whole and ground spices is heavier in paneer butter masala than in makhani gravy. Hence, the name of the recipe has masala in it.

Paneer butter masala – Reason behind its popularity
  • It is a vegetarian dish which is perfect to trigger the taste buds of both vegetarian and non-vegetarian people.
  • It is known for its inimitable taste and unique flavour. The mildly spicy gravy with a buttery and mildly sweet taste has won the hearts of millions all around the world.
  • As the gravy is mildly spicy and creamy, so other than in India, it is highly demanding globally.
  • It is one of the most versatile dishes which can be accompanied by any rice items or flatbreads.
  • It is very easy-to-make recipe prepared using minimal ingredients.
  • Paneer butter masala has become a part of any celebration now. Any marriage, anniversary or birthday party is incomplete without this iconic Punjabi dish. Even it has occupied a place in the Menu card of almost every vegetarian Indian restaurant in India and foreign countries as well.

Restaurant-style paneer butter masala aka paneer butter masala recipe is one of my favourite paneer curries which I can’t stop myself to devour till my stomach is tightly packed. In fact, I never met any person in my entire life who does not like paneer butter masala.

It is one of our family favourites and I can’t remember any special occasion without this splendid delight. Whenever we go to any north Indian restaurant on a veg day, after a long conversation before ordering, we always end up ordering paneer butter masala and butter naan as a primary part of the main course.

After preparing it at home, I realized that if you cook it properly, it tastes much better than restaurant-bought ones. Secondly, though it sounds complicated, paneer butter masala is one of the easiest Indian panner curry recipes which gets prepared using minimal ingredients within half an hour. In fact, it could be a perfect recipe for sudden guests.

The best part of preparing this scrumptious dish at home is that you will have full control to make it less rich and healthier. There is no doubt in it that paneer butter masala recipe is a rich dish and everyone normally eats it on special occasions or events. But you can manipulate the amount of butter, cream and cashew nuts according to your choice without compromising their taste.

Restaurant-style paneer butter masala aka paneer butter masala recipe is a simple and easy paneer recipe. Though it looks exactly like the restaurant-bought ones, the way of cooking it is quite easy. Honestly, it is a full-proof recipe, and nothing can go wrong with it. It requires all the common ingredients which are regularly used in Indian cuisine and easily available in any Indian grocery.

Paneer butter masala with step-by-step photos and instructions have been provided in the ‘Instructions’ section of the recipe. I have included all the tips and tricks below to make the recipe easier for you. If you follow the recipe step by step, then you will surely get the perfect restaurant-style panner butter masala. Before directly jumping into the recipe, let me share a few interesting facts about the recipe and the primary ingredient Paneer.



Health benefits of Indian cottage cheese aka paneer
  • Cottage cheese is very rich in Protein.
  • It is high in Calcium which helps to strengthen our teeth and bones.
  • It helps to control sugar levels for diabetic patients.
  • The nutrients present in it help to improve digestion.
  • It contains a good amount of folate which is an important component for red cell production.



Tips to prepare perfect paneer butter masala
  • Don’t skip whole spices during the time of cooking the masala. It induces a nice aroma to the dish.
  • Fry the onions and ginger garlic properly before adding tomato chunks or else it won’t taste good.
  • Discard the bay leaf before grinding the masala paste or else these spices will overpower their flavour and make the gravy darker in shade.
  • You can reduce the number of cashew nuts by adding some almonds with it.
  • Always sieve the masala paste after grinding to get a smooth velvety restaurant-like gravy texture.
  • You can replace butter with other cooking oil. But butter enhances the taste, texture and flavour of the dish.
  • Don’t skip Kasuri methi (dried fenugreek leaves) from the curry. It will give the exact restaurant-like flavour to the dish.
  • You can adjust the amount of red chilli powder according to your own taste.



Frequently asked Questions

Can I use readymade paneer for the recipe?

Homemade paneer works best for the recipe because it’s soft and fresh. But readymade paneer can also be used for paneer butter masala. But check the manufactured date of the paneer and make sure it’s fresh.


Can I fry the paneer before adding it to the curry?

Yes, you can slightly fry the paneer before adding it to the curry. But after frying the paneer, dip it in a bowl of warm water for 15-20 minutes. So the paneer can soak water and become soft or else the paneer may become rubbery.


Why my paneer has become rubbery and hard?

If you over-fry the paneer before adding to the curry then the paneer may become rubbery and hard. Sometimes frozen paneer or readymade paneer is hard in texture. Dip them in hot water for half an hour so that the paneer can soak in water and become soft.


Why does my paneer break during the time of cooking?

If too much moisture is there in homemade paneer then sometimes paneer may break during the time of cooking.


Is paneer butter masala sweet?

Yes, paneer butter masala is slightly sweet in taste. The addition of onion, cream and a little bit of sugar makes the curry slightly sweet.


What type of cream is to be used for the recipe?

Any type of cream can be used for the recipe like fresh cream, double cream, whipping cream etc.


How to make paneer butter masala without cream?

The addition of cream makes the paneer butter masala gravy rich and creamier. But you can skip cream from the recipe. The addition of cashew paste already makes the gravy rich and creamy so you can increase the quantity of cashew paste a little bit and skip cream from the recipe.


How to make paneer butter masala without cashew paste?

Paneer butter masala can be prepared without cashew paste. Instead of cashews, you can use almonds.


What should I use instead of nuts?

Poppy seeds and melon seeds can be the best replacement for nuts for the recipe. If you are allergic to nuts then you can soak poppy seeds and melon seeds for some time and grind them to a smooth paste and use it for the recipe.


Can I use honey instead of sugar?

Honey gets toxic when it is cooked. After finishing cooking when the paneer butter masala will be warm, at that stage, you can add honey to it.


What can I use instead of butter?

You can use ghee aka clarified butter instead of butter or you can use any other flavourless edible oil for the recipe.


Why cashew nuts are added to paneer butter masala?

Cashew nuts or any other nuts are used in butter masala gravy to make it rich and creamier.


How can I make a vegan version of paneer butter masala?

You can use vegan butter and vegan cream for the recipe and instead of paneer, you can use firm and fresh paneer.


Is paneer butter masala good for health?

Paneer butter masala is a rich and high-calorie recipe. A generous amount of butter, cream and cashew paste is added to the recipe. So no one eats it on regular basis, only on special occasions, people prefer to eat paneer butter masala.


How to make paneer butter masala?

To prepare paneer butter masala first, wash and cut all the vegetables and make them ready for use. Soak some cashew nuts in warm water for 10-15 minutes. Cut the paneer into desired pieces and keep them aside.

Put a pan on flame and allow it to become completely dry. Add 1½ tablespoons butter and allow the butter to bubble. Add a bay leaf, 2 cardamoms into the pan and stir it for 10-15 seconds.

Add the chopped onions into the pan and cook it on medium flame for 5-6 minutes till the onions turn translucent.

Add the chopped ginger-garlic into the pan and cook it for another 3 minutes on low flame until the raw smell goes away. Then add the tomato chunks, soaked cashew nuts and mix it well.

Add salt, ½ teaspoon turmeric powder, 1 teaspoon red chilli powder and stir it nicely. Cover the pan and cook it on low flame for 2-3 minutes.

Add ½ teaspoon cumin powder, ¾ teaspoon coriander powder and stir it nicely. Cover the pan and cook it on low flame for a couple of minutes until the raw smell goes away.

Then take off the lid of the pan and add ¼ cup water into it. Cover the pan and cook it for 10 minutes on low flame until the tomatoes get mushy.

Switch off the flame and put the pan down. Discard the bay leaf from the mixture. Allow the mixture to cool down completely to room temperature.

Transfer the mixture to the jar of a grinder and close the lid. Grind it till smooth. For an extra smooth restaurant-like gravy, sieve the masala. Add some water into the jar of the grinder and sieve it too for zero wastage. Keep it aside.

For the paneer butter masala gravy, put the same pan on flame and add 1 tablespoon of butter to it.

Once the butter starts bubbling, add one slit and deseeded green chilli into the pan and sauté it for a few seconds. Add the strained masala paste into the pan and give a nice mix. Then add ¾ cup water and give a nice stir.

Add 1 teaspoon of sugar, ½ teaspoon of garam masala powder and mix it well. Cover the pan and put the flame on high until the gravy starts bubbling. Then turn the flame low and 3 tablespoons cream into the pan. Mix it well. Add the paneer chunks to the gravy.

At the final stage, mash ½ tablespoon of Kasuri methi in your palm and sprinkle it on the gravy. Mix it evenly. Cook it on low flame for a minute.

Many Indian paneer curry recipes have already been shared in my previous post. You can check a few of them like

Paneer makhani recipe
Achari paneer
Paneer methi malai recipe
Karahi Paneer
Shahi Paneer Recipe Mughlai Style

..And Many more…


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Ingredients:

For the masala paste
  • 2 Onions, small diced
  • 2 large Tomatoes, small diced
  • 3 large cloves of Garlic, peeled and roughly chopped
  • 1 inch Ginger, peeled and small diced
  • 12-15 Cashew nuts
  • 1 Bay leaf
  • 2 Cardamoms
  • ½ teaspoon Turmeric powder
  • 1 teaspoon red Chilli powder
  • ½ teaspoon Cumin powder
  • ¾ teaspoon Coriander powder
  • Salt to taste
  • 1½ tablespoons Butter
  • ¼ cup water for the masala to cook

Paneer butter masala ingredients
  • 250 grams Paneer (Indian cottage cheese)
  • 3 tablespoons fresh Cream
  • 1 green Chilli, slit and deseeded
  • ½ teaspoon Garam masala powder
  • ½ tablespoon Kasuri methi (Dried fenugreek leaves)
  • 1 teaspoon Sugar, depending on the tanginess of the tomatoes
  • Salt to taste
  • 1 tablespoon Butter
  • ¾ cup Water for the gravy



Instructions:
  1. Soak some cashew nuts in warm water for 10-15 minutes.
  2. Put a pan on flame and allow it to become completely dry. Add 1½ tablespoons of butter and allow the butter to bubble.
  3. Add a bay leaf, 2 cardamoms into the pan and stir it for 10-15 seconds.
  4. Add the chopped onions into the pan and cook it on medium flame for 5-6 minutes till the onions turn translucent.
  5. Add the chopped ginger-garlic into the pan and cook it for another 3 minutes on low flame until the raw smell goes away.
  6. Add the tomato chunks, soaked cashew nuts (Step 1) and mix it well.
  7. Add salt, ½ teaspoon turmeric powder, 1 teaspoon red chilli powder and stir it nicely. Cover the pan and cook it on low flame for 2-3 minutes.
  8. Add ½ teaspoon cumin powder, ¾ teaspoon coriander powder and stir it nicely. Cover the pan and cook it on low flame for a couple of minutes until the raw smell goes away.
  9. Take off the lid of the pan and add ¼ cup water to it. Cover the pan and cook it for 10 minutes on low flame until the tomatoes get mushy.
  10. Switch off the flame and put the pan down. Discard the bay leaf from the mixture. Allow the mixture to cool down completely to room temperature.
  11. Transfer the mixture to the jar of a grinder and close the lid. Grind it till smooth.
  12. For an extra smooth restaurant-like gravy, sieve the masala. Add some water into the jar of the grinder and sieve it too for zero wastage. Keep it aside.
  13. Cut the paneer into cubes and keep them aside.
  14. For the paneer butter masala gravy, put the same pan on flame and add 1 tablespoon of butter into it.
  15. Once the butter starts bubbling, add one slit and deseeded green chilli into the pan and sauté it for a few seconds.
  16. Add the strained masala paste into the pan and give a nice mix.
  17. Add ¾ cup water and give a nice stir.
  18. Add 1 teaspoon of sugar, ½ teaspoon of garam masala powder and mix it well. Cover the pan and put the flame on high until the gravy starts bubbling.
  19. Turn the flame low and 3 tablespoons of cream into the pan. Mix it well.
  20. At the final stage, add the paneer chunks to the gravy. Mash ½ tablespoon Kasuri methi in your palm and sprinkle it on the gravy. Mix it evenly. Cook it on low flame for a minute.
  21. Check the salt and add more if required. Then switch off the flame. Now your paneer butter masala is ready to serve.


Serving Instruction

Transfer the Restaurant style paneer butter masala aka paneer butter masala recipe to a serving bowl. Serve hot or warm to enjoy its best taste. Pair up the succulent dish with your favourite rice item or flatbread and enjoy the north Indian delicacy.


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Restaurant style paneer butter masala | Paneer butter masala recipe | How to make paneer butter masala at home

Serves: 4 Prep Time: Cooking Time:
Nutrition facts: NA calories NA fat
Rating: 5.0/5
( 1 voted )

Ingredients

For the masala paste

  • 2 Onions, small diced
  • 2 large Tomatoes, small diced
  • 3 large cloves of Garlic, peeled and roughly chopped
  • 1 inch Ginger, peeled and small diced
  • 12-15 Cashew nuts
  • 1 Bay leaf
  • 2 Cardamoms
  • ½ teaspoon Turmeric powder
  • 1 teaspoon red Chilli powder
  • ½ teaspoon Cumin powder
  • ¾ teaspoon Coriander powder
  • Salt to taste
  • 1½ tablespoons Butter
  • ¼ cup water for the masala to cook

Paneer butter masala ingredients

  • 250 grams Paneer (Indian cottage cheese)
  • 3 tablespoons fresh Cream
  • 1 green Chilli, slit and deseeded
  • ½ teaspoon Garam masala powder
  • ½ tablespoon Kasuri methi (Dried fenugreek leaves)
  • 1 teaspoon Sugar, depending on the tanginess of the tomatoes
  • Salt to taste
  • 1 tablespoon Butter
  • ¾ cup Water for the gravy

Instructions

  1. Soak some cashew nuts in warm water for 10-15 minutes.
  2. Put a pan on flame and allow it to become completely dry. Add 1½ tablespoons of butter and allow the butter to bubble.
  3. Add a bay leaf, 2 cardamoms into the pan and stir it for 10-15 seconds.
  4. Add the chopped onions into the pan and cook it on medium flame for 5-6 minutes till the onions turn translucent.
  5. Add the chopped ginger-garlic into the pan and cook it for another 3 minutes on low flame until the raw smell goes away.
  6. Add the tomato chunks, soaked cashew nuts (Step 1) and mix it well.
  7. Add salt, ½ teaspoon turmeric powder, 1 teaspoon red chilli powder and stir it nicely. Cover the pan and cook it on low flame for 2-3 minutes.
  8. Add ½ teaspoon cumin powder, ¾ teaspoon coriander powder and stir it nicely. Cover the pan and cook it on low flame for a couple of minutes until the raw smell goes away.
  9. Take off the lid of the pan and add ¼ cup water to it. Cover the pan and cook it for 10 minutes on low flame until the tomatoes get mushy.
  10. Switch off the flame and put the pan down. Discard the bay leaf from the mixture. Allow the mixture to cool down completely to room temperature.
  11. Transfer the mixture to the jar of a grinder and close the lid. Grind it till smooth.
  12. For an extra smooth restaurant-like gravy, sieve the masala. Add some water into the jar of the grinder and sieve it too for zero wastage. Keep it aside.
  13. Cut the paneer into cubes and keep them aside.
  14. For the paneer butter masala gravy, put the same pan on flame and add 1 tablespoon of butter into it.
  15. Once the butter starts bubbling, add one slit and deseeded green chilli into the pan and sauté it for a few seconds.
  16. Add the strained masala paste into the pan and give a nice mix.
  17. Add ¾ cup water and give a nice stir.
  18. Add 1 teaspoon of sugar, ½ teaspoon of garam masala powder and mix it well. Cover the pan and put the flame on high until the gravy starts bubbling.
  19. Turn the flame low and 3 tablespoons of cream into the pan. Mix it well.
  20. At the final stage, add the paneer chunks to the gravy. Mash ½ tablespoon Kasuri methi in your palm and sprinkle it on the gravy. Mix it evenly. Cook it on low flame for a minute.
  21. Check the salt and add more if required. Then switch off the flame. Now your paneer butter masala is ready to serve.
Did You Make This Recipe?
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Working at Walgreens November 17, 2022 - 6:43 am

Thanks so much!

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