Paneer Butter Masala Restaurant Style

The classic paneer butter masala is a must-have recipe in your recipe repertoire especially if you want to become a pro in Indian cooking! This is a flagship Indian dish and one of the most ordered dishes in all Indian restaurants!

Paneer butter masala is undoubtedly the most loved paneer recipe across India. You enter any Indian restaurant and this classic paneer makhni, as we call it in Hindi, is sure to grace the menu card.

The thick and luscious gravy of a good paneer butter masala is simply to die for and you can’t help but mop up until the last drop of it with a butter naan or kulcha. I would skip chicken for a day if I am served this delicious and perfectly cooked paneer butter masala with some Indian flat bread.

Well, for the chicken lovers, you can refer to restaurant style butter chicken in my blog as the soul sister of paneer butter masala, but the succulent cubes of paneer in the rich & buttery gravy has its own addiction and I bet you can’t get over it!

What is Paneer Butter Masala?

To put it simply, paneer butter masala is a paneer curry cooked in a creamy, rich and lusciously smooth gravy which is predominantly flavored with butter. There are other secret ingredients to make the gravy as addictive as the restaurant style paneer butter masala and we will get to it shortly.

But, as the name rightly suggests, paneer butter masala is not a weight-watchers’ dish! It is as sinful as it can get and I admit it. You won’t be able to devour this classic paneer recipe every other day and that’s a given.

Such gorgeous dishes are for special occasions when you want to recreate the restaurant-like ambience at your home and delight your friends and family or simply wanna soak yourself in self-indulgence!

This recipe is perfect to create the restaurant style paneer butter masala; or even better because when you make it at home you will have control on how much butter you want to put in your own customized paneer makhni.

This is also a great make ahead dish if you want to make it for a house party or a potluck. You can prepare the gravy a day ahead and add the paneer cubes the next day while warming the gravy before serving!

Make this exotic paneer butter masala in your next gathering and you will surely steal the show! That’s a guarantee from me!

Ingredients for paneer butter masala

Paneer: Use a block of fresh paneer cut into long pieces about 1-inch in length. You may use malai paneer (which is made with extra cream added to the milk before curdling it) for extra richness; but the gravy is already very tasty, so any paneer will work beautifully.

Raw cashew nut: Cashew paste is my secret ingredient for making the most delicious paneer butter masala ever. It adds a natural sweetness and creaminess which is simply unparallel!

Unsalted butter: This dish is called paneer butter masala for a reason! It is cooked entirely in butter for that ultimate buttery flavor which oil cannot impart. Use unsalted butter for better control over seasoning.

Cinnamon: Butter is tempered with cinnamon for a royal touch. Cinnamon adds a hint of sweetness with deep earthy flavor.

Fresh green chilli: Even though this dish is quite on the sweeter side, a couple of fresh green chillies will cut through the sweetness and add another layer of flavors through its spicy kick!

Aromatics: Paneer butter masala is one of the rare Indian dishes which does not have onion in it; but it is heavily flavored with ginger and garlic paste, the quintessential flavor bearer of Indian food!

Red tomatoes: Get your hands on the plump and nicely ripe red tomatoes for the best result. The gravy of paneer butter masala is majorly a tomato based gravy, so the quality and freshness of tomatoes will have a significant impact on the final outcome.

Powdered spices: Not too many spices are used in making a good restaurant style paneer butter masala; primarily butter, tomatoes and cashew paste create all the magic! Just a dash of Kashmiri chilli powder for that nice orange color and a small amount of coriander powder for the depth of flavor is all you need!

Kasoori Methi: Dried fenugreek leaves which is also known as kasoori methi is added almost at the end of the cooking. These dry leaves have a unique and almost indescribable taste & flavor which is a must-add ingredient for that restaurant-like taste.

Fresh cream: This royal dish is incomplete without a generous amount of fresh cream.

Salt & Sugar: As highlighted before, paneer butter masala is a sweet & savory dish, so taste & adjust the amount of sugar & salt based on your preference once the gravy is done at the very end.

How to make paneer butter masala

Check out the step by step recipe of paneer butter masala below!

Step 1: First soak the cashews in warm water and leave them for 20 minutes to soften. Then grind the cashews with little water to make a smooth paste without leaving any coarse pieces of cashew. Set it aside until needed.

Step 2: Cut the paneer block into 1-inch long pieces. I have used a 200 gms block of paneer which suffices for 5 adult portions.

Step 3: Now, boil about a liter of water in a saucepan with 1 teaspoon of salt. Once the water starts boiling, drop the paneer cubes into the water and let it come to boil again. Then switch off the flame and leave the paneer in the hot water while you prepare the paneer butter masala gravy.

Step 4: Heat a skillet or kadai and add half of the unsalted butter to it and let it melt. Once the butter melts, temper it with cinnamon sticks & green chilli. Saute them for a few seconds.

Step 5: Next add the ginger paste & garlic paste to the skillet and continue cooking them on medium-low heat for 2 minutes until the raw smell of the aromatics is gone.

Step 6: Now it’s time to add the chopped tomatoes. After adding the tomatoes, season it with salt and also add about a tablespoon of sugar which will cut the tartness of tomatoes.

Pro tip: Get bright red and nicely ripe tomatoes which are quite pulpy and juicy. That will make the best paneer butter masala ever!

Step 7: Continue stirring the tomatoes for a minute to mix them well with the salt and aromatics. Then cover and cook on low for 15 minutes until the tomatoes melt down completely and become mushy.

Step 8: Once the tomatoes have completely melted down, transfer everything to a blender or mixer jar and blend it to make a smooth & lump-free puree. You may need to let the tomato mixture cool down before operating the blender. Once done, set it aside.

Step 9: Now heat a skillet or kadai again and add the remaining unsalted butter to it. Let the butter melt completely keeping the heat on low, else the butter may burn.

Step 10: Then add kashmiri chilli powder and coriander powder to the skillet. Saute the spices for 1 minute on low heat.

Step 11: Pour the prepared tomato puree into the skillet and slowly stir it to mix evenly with the spices.

Step 12: Now add the prepared cashew paste into the skillet and mix it in evenly with the tomato gravy. Let it come to a boil.

Step 13: Pour about half a cup of water, preferably warm water, to thin out the gravy. Give a good stir. Let it come to a boil.

Step 14: Next add the crushed kasoori methi into the simmering gravy and stir it in. Now it’s time to add the paneer cubes which were kept in the salted warm water. After adding the paneer, stir with a light hand to dip each paneer cube into the gravy.

Step 15: Finally add fresh cream, distribute it evenly within the gravy and let it simmer for a minute or two. You can check and adjust for seasoning at this point – feel free to add little more sugar as paneer butter masala is usually on the sweeter side.

Pro tip: Fresh cream transforms an average paneer butter masala and makes it royal. The more cream you add, the more richness it will impart. But do keep in mind that more cream will thicken your gravy too much as it cools down. So keep a good balance – anything between ¼ to less than ½ cup should be okay.

Step 16: Your restaurant style paneer butter masala is ready to devour! Serve it with phulka or naan! Enjoy!

Other delicious paneer recipes from Flavor Quotient

Restaurant Style Paneer Butter Masala | Classic Paneer Recipe

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Prep time

30 mins

Cook time

45 mins

Total time

1 hour 15 mins

Author: Priyanka

Recipe type: Main

Cuisine: Indian

Serves: 5 Servings

Ingredients

Paneer - 200 gms
Raw cashew nut - 15 to 18
Unsalted butter - 40 gms
Cinnamon - 2-inch stick
Fresh green chilli - 2 or as per your taste, broken
Ginger paste - 1 tbsp
Garlic paste - 1 tbsp
Red tomatoes - 3, large, chopped into small cubes
Sugar - 1 tsp
Kashmiri chilli powder - 1 tsp
Coriander powder - ½ tsp
Kasoori Methi (Dried fenugreek leaves) - 1 tsp, crushed
Fresh cream - ¼ cup
Salt to taste

Instructions

First soak the cashews in warm water and leave them for 20 minutes to soften. Then grind the cashews with little water to make a smooth paste without leaving any coarse pieces of cashew. Set it aside until needed.
Cut the paneer block into 1-inch long pieces. I have used a 200 gms block of paneer which suffices for 5 adult portions.
Now, boil about a liter of water in a saucepan with 1 teaspoon of salt. Once the water starts boiling, drop the paneer cubes into the water and let it come to boil again. Then switch off the flame and leave the paneer in the hot water while you prepare the paneer butter masala gravy.
Heat a skillet or kadai and add half of the unsalted butter to it and let it melt. Once the butter melts, temper it with cinnamon sticks & green chilli. Saute them for a few seconds.
Next add the ginger paste & garlic paste to the skillet and continue cooking them on medium-low heat for 2 minutes until the raw smell of the aromatics is gone.
Now it’s time to add the chopped tomatoes. After adding the tomatoes, season it with salt and also add about a tablespoon of sugar which will cut the tartness of tomatoes.
Continue stirring the tomatoes for a minute to mix them well with the salt and aromatics. Then cover and cook on low for 15 minutes until the tomatoes melt down completely and become mushy.
Once the tomatoes have completely melted down, transfer everything to a blender or mixer jar and blend it to make a smooth & lump-free puree. You may need to let the tomato mixture cool down before operating the blender. Once done, set it aside.
Now heat a skillet or kadai again and add the remaining unsalted butter to it. Let the butter melt completely keeping the heat on low, else the butter may burn.
Then add kashmiri chilli powder and coriander powder to the skillet. Saute the spices for 1 minute on low heat.
Pour the prepared tomato puree into the skillet and slowly stir it to mix evenly with the spices.
Now add the prepared cashew paste into the skillet and mix it in evenly with the tomato gravy. Let it come to a boil.
Pour about half a cup of water, preferably warm water, to thin out the gravy. Give a good stir. Let it come to a boil.
Next add the crushed kasoori methi into the simmering gravy and stir it in. Now it’s time to add the paneer cubes which were kept in the salted warm water. After adding the paneer, stir with a light hand to dip each paneer cube into the gravy.
Finally add fresh cream, distribute it evenly within the gravy and let it simmer for a couple of minutes. You can check and adjust for seasoning at this point - feel free to add little more sugar as paneer butter masala is usually on the sweeter side.
Your restaurant style paneer butter masala is ready to devour! Serve it with phulka or naan! Enjoy!