Creamy paneer butter masala gravy in white bowl with naan bread at the back.
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4.86 from 49 votes

Paneer Butter Masala

Paneer Butter Masala recipe – is a remarkable creamy dish of paneer cooked in tomato cashew nut gravy, spices and cream. A different and absolutely tasty recipe than other butter paneer recipes out there, so make it now!
Prep Time10 mins
Cook Time30 mins
Total Time40 mins
Course: Maincourse
Cuisine: Indian
Keyword: Butter Paneer, Paneer Butter Masala, Paneer Recipes
Servings: 4
Calories: 328kcal
Author: Farrukh Aziz


For Preparation Of Paneer Butter Masala

  • 200 g Paneer cut in 1 inch cubes
  • 4 tomatoes medium size, ripe and firm red tomatoes, roughly chopped
  • 9-10 Cashew nuts
  • 1 tsp Caraway seeds (Shajeera)
  • ½ inch ginger chopped or grated
  • 1 green chili chopped
  • 3-4 garlic cloves chopped or crushed
  • 1 inch cinnamon stick
  • 1 bay leaf
  • ¼ tsp turmeric
  • 1 tsp coriander powder
  • 1 ½ tsp Kashmiri red chili powder (Kashmiri lal mirch powder)
  • ¾ tsp garam masala powder
  • 1 tsp kasuri methi dried fenugreek leaves
  • Salt to taste
  • 1 tsp Sugar
  • 2 tbsp Cream
  • 4 tbsp Butter


Preparation Of Paneer Butter Masala Gravy Paste

  • In a pan, melt 1 tablespoon of butter. When the butter melts, add shajeera and fry for few seconds
  • Then, add garlic, ginger and green chili for few seconds
  • Now add cashew nuts and fry for a minute
  • Add tomatoes and sauté on high for a minute.
  • Cook until tomatoes are soft. Now, take it off the heat and cool completely
  • Grind the butter masala gravy to a very fine paste.
  • TIP: At this stage, you can store butter masala paste in clean freezer safe container or zip pouch easily for up to 6 months. Whenever you wish to make any paneer curry or veg gravy, just thaw it at room temperature for some time and you are good to go.

How To Make Paneer Butter Masala

  • To make butter masala recipe, next we need to melt 3 tablespoons of butter in a pan or kadhai. Next, add bay leaf and cinnamon stick, fry for few seconds
  • Then, lower the heat and add turmeric powder, red chilies powder and coriander powder
  • Now add kasuri methi and mix.
  • Then, add butter masala gravy, saute on high for a minute. Stir in between
  • Cook for 2-3 minutes or until masala starts releasing the oil.
  • Now, add little water depending upon the consistency of the gravy you need. Do not add too much water at a time.
  • Bring it to a boil. Once the gravy boils, add cream and mix. Cook for a minute or 2.
  • Add paneer, garam masala powder and sugar. Mix well. Cook for only a minute.
  • Add some more kasuri methi if you prefer. Proceed with the step of giving charcoal dhungar for the smoky flavour restaurant or Dhaba like flavour.
  • Butter Paneer is ready to serve. Serve paneer butter masala with tandoori roti, butter naan or pulao of your choice.


If you have allergy to cashew nuts or if they are not available with you, swap the cashew nuts with blanched and peeled almonds or melon seeds.
Some times, I do use almonds for paneer butter masala gravy instead of cashew nuts.
You can adjust the amount of green chillies and red chilli powder as per you liking. Of course, you can add more to make it a spicy butter paneer.


Calories: 328kcal | Carbohydrates: 11g | Protein: 9g | Fat: 29g | Saturated Fat: 17g | Cholesterol: 74mg | Sodium: 162mg | Potassium: 323mg | Fiber: 2g | Sugar: 5g | Vitamin A: 29.8% | Vitamin C: 22.9% | Calcium: 27.1% | Iron: 4.3%