North Indian Paneer

Paneer Butter Masala

5/5 - (5 votes)

Paneer butter masala is one of the famous dish of North Indian cuisine.It is definitely the king of dishes for the vegetarians and is good source of proteins. The soft paneer and creamy delicious gravy pairs well with any Indian flat breads such as Naan, Roti, Kulcha, or even simple Pulav. My husband is a big fan of paneer butter masala.

This is an ideal recipe for parties, so don’t miss preparing this restaurant style paneer butter masala at home.

Do try other Paneer recipes :

Preparation Time: 10mins  ∏  Cooking Time: 35-40mins  ∏  Servings:3-4 persons

Level:Intermediate(Medium)  ∏  Measurement: 1 Cup ≡ 250 ml ≡ 250gm


  • 250 gram paneer chopped in cubes
  • 1 large onion roughly chopped
  • 3-4 medium size tomato roughly chopped
  • 3-4 garlic clove roughly chopped
  • 2 inch ginger roughly chopped (+ 1/2 inch julienne)
  • 7-8 cashew
  • 1-2 green chillies finely chopped (+2 chilly slits)
  • 2-3 strands of mace (Javitri)
  • 1-2 green cardamom
  • 2-3 cloves
  • 1 inch cinnamon stick
  • 1 bay leaf
  • 1-1/2 teaspoon kashmiri red chilly powder
  • Coriander leaves -fistful (finely chopped)
  • 2 inch butter cube (or 3-4 teaspoon)
  • 1/2 teaspoon garam masala
  • 1/2 teaspoon sugar
  • Grated paneer
  • 1/2 teaspoon dry fenugreek leaves (kasuri methi)
  • 1 Cup water
  • 1/2 teaspoon oil
  • Salt as per taste


How to make Paneer Butter Masala:

Step1: Turn on flame and heat a pan. Then add 1/2 teaspoon oil and let it heat, now add chopped garlic, ginger, green chilly, onion, tomato, cashew, cardamom, cinnamon, mace and clove.Saute it for 10-12 minutes on medium flame till the onion and tomatoes are soft & cooked.Remove it to a plate and let it cool.

Once the mixture is cooled, we will grind this mixture in a smooth paste using blender/grinder (without using water,If required you can use 1-2 teaspoon water).It should be a smooth paste (chunks of cashew should not be there in the paste).


Step2: Heat another pan on medium flame, add butter along with bay leaf and ginger juliennes, saute it for 20-30 seconds.Then add the onion-tomato paste and stir it well.

We have to saute this paste for around 15-20 minutes on low-medium flame till the butter is separated from the paste.Keep stirring in between to avoid sticking it to base of the pan.The more you will saute it, it will taste that good.

Step3: Once the paste is sauteed well, add slit chilly along with salt and kashmiri red chilly powder.Add water depending upon the thickness of the gravy you like.Cook it for 2-3 minutes then add sugar and mix everything well.

 Step4: Add paneer cubes, mix it with the gravy and cook for 2-3 minutes on low flame.

Then add garam masala along with kasuri methi, mix everything well.Stir and turn off the flame.Check the salt and chilly powder, add if required.

Paneer Butter masala is ready. garnish it with grated paneer, fresh coriander leaves & butter.Serve it hot/warm with naan, roti, kulcha or pulav.

Paneer Butter Masala


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