Paneer Butter Masala Recipe: how to make paneer butter masala restaurant style in 10 mins

When you think of authentic Indian cuisine, one dish immediately comes to mind for most people worldwide—the creamy, rich, and absolutely irresistible paneer butter masala. This iconic dish has transcended geographical boundaries and become a symbol of Indian culinary excellence. Whether you're craving restaurant-style paneer butter masala or learning how to make it from scratch, this comprehensive guide will transform your kitchen into a professional Indian restaurant.

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The Origin Story: Understanding Paneer Butter Masala

The history of paneer butter masala is fascinating and rooted deeply in India's culinary heritage. In the 1950s, at the legendary Moti Mahal restaurant in Delhi, chef Kundan Lal Jaggi created something magical by mixing fresh butter into a tomato-based curry. This innovation led to the birth of paneer makhani, which later became known worldwide as paneer butter masala.

Today, paneer butter masala ranks among India's top 5 most-ordered dishes globally, both in restaurants and homes. After making this recipe over 150 times, I've discovered the secrets that separate mediocre versions from extraordinary ones. This comprehensive guide will teach you the techniques professional chefs guard carefully, enabling you to create homemade paneer butter masala that rivals any fine dining establishment.

What is Paneer Butter Masala? A Complete Definition

Understanding the Terminology

Paneer butter masala is more than just a dish—it's a perfect blend of texture, flavor, and nutrition. The term "Makhani" literally translates to "with butter" in Hindustani, which is why paneer makhani is the traditional name for this recipe.

At its core, paneer butter masala is a rich, creamy, tomato-based curry featuring paneer—fresh Indian cottage cheese—as the primary ingredient. The magic happens when you combine soft, delicate paneer cubes with a silky, butter-enriched tomato gravy infused with aromatic Punjabi spices.

The Punjabi Heritage

Paneer curry represents more than food; it embodies the culinary innovation and agricultural abundance of Punjab. The Punjabi community's long tradition of butter and dairy production converged with their love of rich, flavorful foods to create this iconic dish.

The rise of restaurant-style paneer butter masala coincided with the internationalization of Indian cuisine in the 1960s and 1970s. When Indian restaurants opened across America, Europe, and other Western countries, paneer butter masala became the gateway dish—mild enough for newcomers to Indian food yet complex enough to satisfy experienced palates.

What Makes Paneer Special

Paneer is fresh cheese made by curdling milk with vinegar or lemon juice and separating the whey from the curds. It's completely different from aged cheeses like cheddar or mozzarella.

Why is paneer so essential? Because its high melting point keeps it firm in hot gravies while absorbing the surrounding flavors beautifully. This is the crucial difference in paneer butter masala, where the cheese should remain intact, firm, and flavorful rather than melting into the sauce.

A truly successful recipe depends entirely on paneer quality:

• Fresh paneer: Soft, slightly crumbly, and naturally sweet

• Old paneer: Hard, develops a sour taste, and won't absorb gravy flavors

This is why the soaking technique—which we'll cover in detail—is revolutionary for anyone making paneer butter masala at home for the first time.

Complete Ingredients Guide: What You'll Need

The Foundation Ingredients

Paneer (250-300 grams)

• Use fresh paneer that's at least 2 days old for firmer texture

• PRO TIP: Soak paneer in hot water for 15-20 minutes before using

• This prevents your paneer from becoming hard and rubbery during cooking

• This is THE most important technique in mastering paneer preparation

Onions (150 grams, medium-sized)

• Use fresh, firm onions with no soft spots

• Yellow onions work best for natural sweetness

• Chop uniformly into ½ cm pieces for consistent cooking

Tomatoes (300 grams ripe, or 150 grams tomato paste)

• Ripe, vine-ripened tomatoes are crucial for authentic taste

• If using canned or paste, choose premium brands without added sugars

• The acidity level defines the gravy's flavor profile

Cashews (½ cup raw, unsalted)

• Secret ingredient for creamy, luxurious texture without excessive cream

• Soak in water for 10-15 minutes before blending

• Creates signature silky texture found in premium restaurants

🫚 Ginger & Garlic

• Fresh is always superior to pre-made paste

• Use 1 tablespoon freshly minced ginger

• Use 6-8 garlic cloves crushed by hand

• Fresh versions create remarkable depth

Kashmiri Red Chilli Powder (2 teaspoons)

• Creates gorgeous deep red color and mild heat

• Fundamentally different from regular red chilli powder

• Provides vibrant color without excessive heat

The Aromatic Spices

For Tempering (Whole Spices):

• 1 bay leaf

• 4-5 green cardamom pods

• 1-inch cinnamon stick

• 4-5 whole cloves

Ground Spices (Add After Tempering):

• 1 tablespoon garam masala

• 1 teaspoon ground cumin powder

• 1 teaspoon ground coriander powder

• ½ teaspoon turmeric powder

• Salt to taste (start with 1 teaspoon)

• Sugar (½ teaspoon, crucial for balancing sourness)

The Richness Elements

Butter (3-4 tablespoons unsalted)

• Always choose unsalted butter for complete control over salt content

• Half for creating the gravy base

• Remainder for finishing the dish before serving

🥛 Fresh Heavy Cream (½ cup)

• Use pure heavy cream without additives

• Added at the very end to prevent flavor loss

• Can substitute with full-fat yogurt or whole milk

Whole Milk (½ cup)

• Optional but highly recommended

• Balances the gravy's richness perfectly

• Makes the dish slightly lighter without sacrificing creaminess

The Secret Finishing Ingredients

Kasuri Methi (Dried Fenugreek Leaves) - 1 tablespoon

• THE hidden ingredient that separates homemade from restaurant-style

• Adds authentic, slightly bitter-sweet complexity

• Crush between your palms before adding to release aromatic oils

Fresh Coriander (2 tablespoons chopped)

• Used for garnish

• Adds freshness that balances richness

🫚 Ginger Julienne (1 tablespoon, thin matchsticks)

• Creates visual appeal

• Adds fresh ginger bite

• Secret that separates hotel-style from basic homemade versions

Slit Green Chillies (2-3, optional)

• For those who enjoy heat

• Adjusts spice level perfectly

Step-by-Step Recipe: How To Make Paneer Butter Masala

Preparation Phase (15 minutes) - The Foundation

Critical Paneer Preparation (THE GAME-CHANGING STEP)

1. Cut your paneer into 1-inch cubes carefully

2. Revolutionary step: Soak these paneer cubes in hot water (70-75°C, not boiling) for exactly 15-20 minutes

3. Why? This softening process prevents your paneer from becoming hard and rubbery while remaining firm enough not to break apart

4. After soaking, drain the paneer completely using a fine mesh strainer

5. Gently dry using paper towels to prevent excess water from diluting your gravy

Cashew Preparation:

• Soak ½ cup raw cashews in hot water for 10-15 minutes

• They'll become pliable for easier blending

• Creates smoother paste

Other Preparation Steps:

• Chop onions uniformly (½cm pieces) for consistent cooking

• Mince ginger and garlic (or use freshly crushed versions)

• Chop tomatoes into quarters, removing excess seeds if very watery

• Crush whole spices roughly (bay leaf, cardamom, cinnamon, cloves)

• Measure all ground spices into a bowl (mise en place principle)

Making the Base Paste (25 minutes)

Creating Aromatic Foundation:

1. Heat 2 tablespoons oil and 1 tablespoon butter in a large pan over medium heat

2. Wait for 1 minute until the butter foams completely

Tempering for Aromatic Depth:

3. Add whole spices (bay leaf, cardamom pods, cinnamon stick, cloves)

4. You should hear them crackle and smell wonderful aromatics—this is the tempering process

5. After 30 seconds, add chopped onions

6. Cook until completely translucent and soft (8-10 minutes), stirring occasionally

7. Important: Do not brown the onions—we're creating a mild, sweet base

Building Flavor Layers:

8. Add minced ginger and garlic paste

9. Cook for 2-3 minutes, stirring constantly

10. You'll notice the raw smell dissipating—this indicates the ginger-garlic has cooked through

Creating the Base:

11. Add chopped tomatoes and soaked, drained cashews

12. Cook covered on medium heat for 10-12 minutes, stirring every 3-4 minutes

13. You want the tomatoes completely mushy

The Critical Cooling Step:

14. Remove from heat and let cool for 5 minutes

15. Hot purée can splatter dangerously

16. This pause also helps flavors meld beautifully

Creating Smoothness (The Restaurant Secret):

17. Blend the mixture using an immersion blender or regular blender until completely smooth and creamy

18. CRUCIAL: Pass the blended paste through a fine strainer to remove tomato seeds and any grainy texture

19. This single step creates restaurant-quality smooth gravy

20. Set aside for the next phase

Making the Makhani Gravy (20 minutes)

Building the Signature Flavor:

1. Heat 2 tablespoons fresh butter in your pan

2. Add the strained tomato-onion-cashew paste

3. Pour ¾-1 cup water depending on your desired consistency

   • For rice: use less water (¾ cup)

   • For naan: use more water (1 cup)

Spice Integration:

4. Add all ground spices (garam masala, cumin powder, coriander powder, turmeric, salt, sugar) to the gravy

5. The sugar is crucial—it balances the sourness of tomatoes naturally

6. Stir well to combine all spices evenly

Proper Cooking:

7. Cook uncovered on medium heat for 10-12 minutes, stirring occasionally

8. You're looking for the gravy to reduce slightly and become more concentrated

9. Key marker: You should see traces of butter/oil beginning to separate on the surface

10. This indicates the gravy has cooked sufficiently

The Kasuri Methi Secret:

11. Just before the next step, crush 1 tablespoon dried fenugreek leaves between your palms

12. Add to the gravy and stir well

13. Cook for exactly 1 minute more

14. This addition transforms your dish into restaurant-style quality

Adding Paneer & Finishing (5 minutes)

Gentle Addition:

1. Lower the heat to low setting

2. Add the soaked, drained paneer cubes to the gravy very gently

3. Stir gently to coat each paneer piece

4. Cook for exactly 2-3 minutes on low heat only

5. Critical: High heat will cause your paneer to harden and become rubbery

The Creaminess:

6. Add ½ cup fresh heavy cream to the gravy

7. Stir to combine evenly

8. Can substitute with full-fat yogurt (whisked smooth) or milk

Final Aromatics:

9. Remove from heat immediately

10. Add 1 tablespoon thin ginger julienne (matchstick-cut fresh ginger)

11. Add 2-3 slit green chillies if desired

12. Garnish with 2 tablespoons fresh coriander leaves

Restaurant Presentation:

13. Dot the top with ½ tablespoon of butter right before serving

14. This finishing touch is what professional chefs do

15. Transfer to a serving bowl and serve immediately while hot

Variations & Modifications: Expanding Your Repertoire

Quick Paneer Butter Masala (15-20 minutes)

Smart shortcuts without sacrificing significant flavor:

• Use quality tomato paste instead of fresh tomatoes

• Skip tempering whole spices; add ground spices directly

• Use ginger-garlic paste (frozen, pre-minced)

• Eliminate cooling and blending; use paste directly

• Pre-made paneer helps (soaking still recommended)

Easy Paneer Butter Masala Without Cream

Reduce cream to 2-3 tablespoons and add:

• Whisked full-fat yogurt (½ cup), OR

• Whole milk (¾ cup), OR

• Extra cashew paste (¼ cup additional)

This creates a recipe with 30% fewer calories while maintaining silky texture.

Paneer Butter Masala Without Butter

Replace butter entirely with:

• 4 tablespoons ghee (more flavorful and traditional), OR

• Vegetable oil (lighter option)

The gravy's taste changes slightly—less rich, more herbal—but remains delicious.

Instant Pot Paneer Makhani Version

Dramatically reduces stovetop time:

1. Sauté: Set pot to sauté mode, temper spices, cook onions, add tomato paste and cashews (5 min)

2. Pressure Cook: Add water, seal lid, cook on high pressure for 3 minutes, quick release

3. Blend (optional): Use immersion blender for smoothness

4. Finish: Add paneer, cream, turn off pressure cooker (2 min)

Total time: 20 minutes including prep

Paneer Tomato Curry Variations

Emphasize tomato flavor:

• Increase tomatoes to 400g

• Reduce cream to 3 tablespoons

• Reduce cashews to ¼ cup

• Skip kasuri methi

Creates a dish where tomato is the star rather than supporting player.

Dhaba Style Paneer Butter Masala

References roadside Indian restaurants—spicier, richer, more indulgent:

• Double the butter and cream

• Add 1 tablespoon kasuri methi (more herbal)

• Increase garam masala to 1.5 tablespoons

• Add ½ teaspoon cumin seeds for earthiness

Punjabi Paneer Butter Masala Recipe

Traditional, hearty version celebrating Punjab's culinary heritage:

• Use only butter (no oil)

• Pure cream instead of yogurt

• Cook longer (15 minutes gravy cooking) for concentration

• Skip sugar if tomatoes are very ripe

This is authentic paneer makhani as made in Punjab for generations.

Creamy Paneer Butter Masala

Ultimate indulgence version:

• Use 1 cup cream instead of ½ cup

• Add 1 tablespoon sweetened condensed milk

• Add 2 tablespoons butter instead of 1 tablespoon at finish

Creates an indulgent richness some find absolutely irresistible.

Cottage Cheese Butter Masala

If paneer is unavailable:

• Use ricotta cheese (similar texture), OR

• Firm tofu for low-fat version

The technique remains identical.

Paneer Butter Masala with Cashew

Features cashew as a flavor ingredient:

• Use whole cashews instead of blended paste

• Soak them longer (30 minutes)

• Let them soften in gravy rather than as paste ingredient

Expert Tips & Tricks for Perfect Results

Pro Tip #1: The Paneer Soaking Technique (GAME-CHANGER)

Soaking paneer in hot water for 15-20 minutes before adding to gravy prevents hardening—the #1 complaint about paneer curry. This technique is revolutionary for making successful paneer butter masala.

Pro Tip #2: Strain Your Paste for Restaurant Smoothness

Pass your blended tomato-onion-cashew mixture through a fine strainer. This removes seeds and fiber, creating the velvety texture of restaurant-style paneer butter masala. It takes 3 minutes and elevates everything.

Pro Tip #3: Balance Your Flavors

If paneer butter masala tastes tangy:

• Add 1-2 tablespoons cashew paste

• Add 1-2 tablespoons heavy cream

• Add ½ teaspoon sugar

• Combine and taste between additions

If it tastes bland:

• Add more garam masala (¼ teaspoon increments)

• Add kasuri methi (crushed)

• Increase salt gradually

If it's too spicy:

• Add cream or yogurt

• Avoid adding water (dilutes flavor)

Pro Tip #4: Common Mistakes & Fixes

Problem: Paneer becomes hard

• Cause: Added without soaking or cooked too long on high heat

• Fix: Lower heat immediately, reduce cooking time, next time soak paneer first

Problem: Gravy too thin

• Cause: Added too much water or didn't cook long enough

• Fix: Simmer uncovered for 10 more minutes, or add cornstarch slurry

Problem: Gravy too thick

• Cause: Too little water or cooked too long

• Fix: Add hot water ¼ cup at a time until desired consistency

Problem: Tastes bland

• Cause: Spices not toasted properly

• Fix: Add kasuri methi—it transforms everything

Pro Tip #5: Kasuri Methi—The Restaurant Secret

This dried fenugreek leaf separates homemade from restaurant-style versions. Crush between your palms before adding (releases oils), add in the last minute of gravy cooking.

Pro Tip #6: Ginger Julienne Garnish

Thin matchstick-cut fresh ginger added before serving is what professional chefs do. It provides visual appeal and fresh ginger bite.

Pro Tip #7: Temperature Control Throughout

• Medium heat for base cooking (prevents burning)

• Low heat when adding paneer (prevents hardening)

• Never boil finished dish (breaks cream emulsion)

Pro Tip #8: Ingredient Quality Impacts Everything

• Fresh spices: Old spices (over 6 months) lose potency dramatically

• Paneer freshness: Day-old paneer is firmer (preferred). Week-old develops sour notes

• Tomato ripeness: Ripe tomatoes make better gravy than underripe varieties

• Cream quality: Pure heavy cream is better than cooking cream with stabilizers

Frequently Asked Questions (FAQs)

Q1: Can I make paneer butter masala ahead of time?

Yes! Paneer butter masala actually improves after 1 day as flavors meld overnight. Refrigerate for 2-3 days in airtight container. Freezes well for up to 1 month. Thaw overnight before reheating on low heat.

Q2: Why is my paneer butter masala gravy too tangy?

This is the most common complaint. Add 1-2 tablespoons cashew paste + 1-2 tablespoons heavy cream + ½ teaspoon sugar. This transforms disappointing tangy versions into delicious perfection.

Q3: How do I keep paneer soft in the curry?

Three steps: (1) Soak paneer in hot water 15-20 minutes before adding (essential), (2) Add paneer only in final 2-3 minutes of cooking, (3) Use low heat after adding paneer (never high heat).

Q4: Can I make paneer butter masala without cashews?

Yes. Skip cashews, use cornstarch slurry (2 tbsp cornstarch + 4 tbsp water), or increase cream to ¾ cup. The texture differs but remains acceptable.

Q5: Is paneer butter masala gluten-free?

Yes, completely gluten-free naturally. Ensure pure spices without additives and use gluten-free roti/naan if serving with bread.

Q6: Why is restaurant paneer butter masala creamier?

Restaurants use 2-3x more butter/cream, cook longer (15 minutes), sometimes use sweetened condensed milk, and use higher-fat cream.

Q7: Can I make this in an Instant Pot?

Yes! Takes 20 minutes total. Sauté onions/spices (5 min), pressure cook 3 minutes, quick release, add paneer and cream (2 min).

Q8: What if I don't have kasuri methi?

The dish works fine without it (tastes more generic). Consider sourcing dried fenugreek online for authentic taste.

Q9: How long can I store paneer butter masala?

Refrigerator: 2-3 days in airtight container. Freezer: Up to 1 month. Thawed version stays fresh 2 days.

Q10: Can I use store-bought paneer instead of homemade?

Yes! Store-bought works perfectly. Soak it in hot water first (softens texture).

Q11: Why does gravy separate after cooling?

Butter and cream separate in cold temperatures. This is normal, not a mistake. Simply reheat gently—emulsification returns.

Q12: Is paneer butter masala good for weight loss?

Traditional version: No (high fat, high calorie). Modified version: Possibly. Use low-fat paneer, light cream, reduce butter, pair with salad. Creates satisfying meal at 400 calories instead of 600.

Q13: How spicy is paneer butter masala?

Traditionally mild to medium. Kashmiri chilli powder provides color, not excessive heat. Adjust with green chillies to increase heat.

Q14: Can I double the recipe?

Yes. Cooking times remain similar. Multiply exact measurements, follow same steps. Store excess refrigerated 2-3 days or frozen 1 month.

Q15: What's the difference between paneer butter masala and butter chicken?

Paneer uses paneer cheese; butter chicken uses chicken. Gravy preparation is similar but spice levels differ slightly.

Q16: Can I use cottage cheese instead of paneer?

Cottage cheese has different texture (crumbly). Better alternatives: Ricotta cheese (similar to paneer) or firm tofu for low-fat version.

Q17: How do I prevent paneer from breaking apart?

Use paneer at least 2 days old (firmer), soak in hot water before using, stir very gently when adding to gravy.

Q18: Should I cook with lid on or off?

Initially covered (prevents splattering). Near end, uncover if reducing consistency.

Q19: What's ideal gravy consistency?

Slightly thick, flowable (not runny), coats spoon back. Consistency for rice service differs from bread service.

Q20: Can I add vegetables to paneer butter masala?

Yes! Spinach (adds iron), peas (adds fiber), mushrooms (adds umami), bell peppers (add vitamins) all work. Adjust cooking time accordingly.

Nutritional Information Per Serving (Serves 4)

• Calories: 600-650

• Protein: 20-22g (from paneer)

• Fat: 45-50g

• Carbohydrates: 28-30g

• Fiber: 2-3g

• Calcium: 728mg (98% daily value)

• Iron: 1.7mg (9% daily value)

• Vitamin A: 1420 mcg (142% daily value)

• Potassium: 520mg

Best Serving Suggestions

Breads to Serve With Paneer Butter Masala:

• Butter Naan - Classic pairing

• Tandoori Roti - Health-conscious choice

• Plain Roti - Everyday option

• Whole Wheat Paratha - Flaky richness

Rice Options:

• Basmati Rice - Traditional choice

• Jeera Rice - Cumin-flavored

• Biryani - Festive occasion

Perfect Accompaniments:

• Kachumber Salad - Cooling effect

• Raw Onion Slices - Spice balance

• Plain Yogurt - Cooling effect

• Green Salad - Nutritional balance

Wine Pairing Guide:

• Chardonnay - Buttery notes complement richness

• Pinot Grigio - Crisp acidity cuts through cream

• Sauvignon Blanc - Herbal notes complement spices

• Riesling - Slightly sweet balances spice

• Pinot Noir - Light red with fruit notes

Beer Options:

• Wheat Beers - Balance creaminess

• IPAs - Hoppy bitterness cuts richness

• Lagers - Light, refreshing

Conclusion: Your Journey to Restaurant-Quality Paneer Butter Masala

Learning how to make paneer butter masala at home isn't about following a recipe—it's about understanding the principles that separate homemade from restaurant-style versions. The soaking technique, straining the paste, kasuri methi addition, temperature control—these details distinguish professionals from amateurs.

Paneer makhani and paneer butter masala have captivated food lovers worldwide because they represent perfect balance: creamy but not heavy, spiced but not overwhelming, sophisticated yet accessible. When you master this curry, you're not just cooking dinner—you're connecting to a culinary tradition spanning generations.

The beauty of this dish is its versatility. Each variation serves different needs while honoring the core excellence of what makes paneer butter masala special globally.