Name: Paneer Butter Masala – Restaurant Style
Prep time: 15 min
Cook time: 30 min
Total time: 45 min
Yield: 4 People
Cuisine: Indian
Ingredients: 1 tbsp Oil; 2 large, roughly chopped Onion; 10 nos Dry Red Chillies; 3 large, roughly chopped Tomato; 1/4 cup Cashew Nuts; 1 tsp Salt; 3 tsp Ghee; 2 tsp Kashmiri Red Chili Powder; 1 tsp Garam Masala Powder; a few leaves, crushed Kasuri Methi; a handful, chopped Coriander Leaves; 1/2 cup (divided) Water; 50 gms Unsweetened Khoa; 3 tbsp Milk; 2 tbsp Fresh Cream; 1 tsp (optional) Sugar; 1 tsp Salt; 300 gms, cubed Paneer; 1 cube (for garnish) Butter

Ready in

45 mins

Cuisine

Indian · North Indian

Prep Time

15 min

Cook Time

30 min

Serving

4 People

Calories / Serving

~450 kcal

Recipe by Home Cooking on YouTube

Summary

Learn to make a rich and creamy restaurant-style Paneer Butter Masala at home. This recipe features a luscious gravy made from onions, tomatoes, cashews, and a blend of aromatic spices, enriched with khoa and fresh cream, and finished with soft paneer cubes.

Adjust servings

Tap an ingredient to mark it ready0 of 19 ready

All Ingredients - For the Gravy Base

Oil 1 tbsp
Onion 2 large, roughly chopped
Dry Red Chillies 10 nos
Tomato 3 large, roughly chopped
Cashew Nuts 1/4 cup
Salt 1 tsp

All Ingredients - For the Curry

Ghee 3 tsp
Kashmiri Red Chili Powder 2 tsp
Garam Masala Powder 1 tsp
Kasuri Methi a few leaves, crushed
Coriander Leaves a handful, chopped
Water 1/2 cup (divided)
Unsweetened Khoa 50 gms
Milk 3 tbsp
Fresh Cream 2 tbsp
Sugar 1 tsp (optional)
Salt 1 tsp
Paneer 300 gms, cubed
Butter 1 cube (for garnish)

Tools You'll Need

Kadai

Spice level: FieryFor chiliheads only — taste before serving.

From:Red chiliKashmiri chiliGaram masalaChiliChili powder

Don't have an ingredient? Try these swaps

No Onion?
- 1 tbsp onion powder (per medium onion)
- 3 tbsp dried minced onion
- Shallots or leeks (1:1)
No Ghee?
- Unsalted butter (1:1)
- Neutral oil (1:1, lacks the toasted note)
No Garam masala?
- 1 tsp cumin + 1/2 tsp coriander + 1/4 tsp cinnamon + 1/4 tsp cardamom
No Cilantro?
- Flat-leaf parsley (1:1, milder)
- Fresh mint (in chutneys, salads)
No Milk?
- Unsweetened almond / soy / oat milk (1:1)
- 1/2 cup evaporated milk + 1/2 cup water (per 1 cup)
No Paneer?
- Extra-firm tofu, pressed and cubed — Pan-fry first for closer texture.
- Halloumi — Saltier; reduce added salt.
No Butter?
- 3/4 the amount of olive oil (for cooking, not baking)
- Equal parts ghee — Slightly nuttier flavor.
- Equal parts coconut oil (in baking)

⚠ Contains Allergens

dairynuts

Step-by-Step Instructions

Step 1: Sauté Onions and Chillies

Heat 1 tablespoon of oil in a kadai. Add 2 large roughly chopped onions and until they become transparent. Then, add 10 dry red chilies and continue to .

Step 2: Add Tomatoes and Cashews

Add 3 large roughly chopped tomatoes and 1/4 cup of cashew nuts to the kadai. Add 1 teaspoon of salt and cook until the tomatoes are nice and mushy.

Step 3: Grind the Gravy Base

Turn off the stove and allow the mixture to cool down completely. Once cooled, transfer the mixture to a mixer jar and grind it into a fine paste.

Step 4: Prepare the Spice Base

In the same kadai, add 3 teaspoons of ghee. Add 2 teaspoons of Kashmiri red chili powder. Give it a quick mix, keeping the flame on medium to prevent the chili powder from burning.

Step 5: Combine with Ground Paste

Add the ground tomato-onion-cashew paste to the kadai. Mix it well with the spice base. Add a little water (about 1/4 cup) to the mixer jar to rinse out any remaining paste and add it to the kadai to adjust the consistency.

Step 6: Add Spices and Herbs

Add 1 teaspoon of garam masala powder and a few crushed kasuri methi leaves. Then, add a handful of freshly chopped coriander leaves and mix everything together.

Step 7: Simmer the Gravy

Cover the kadai and cook the gravy on low flame for about .

Step 8: Prepare Khoa Mixture

While the gravy , grind 50 grams of unsweetened khoa with 3 tablespoons of milk to a fine paste. This mixture will add richness and creaminess to the gravy.

Step 9: Enrich the Gravy

Once the gravy has , add 2 tablespoons of fresh cream and the ground khoa-milk mixture. If using unsweetened khoa, add 1 teaspoon of sugar. Mix everything thoroughly.

Step 10: Adjust Consistency and Seasoning

Add 1/4 cup of water to achieve the desired gravy consistency. Season with 1 teaspoon of salt and mix well.

Step 11: Add Paneer and Final Simmer

Add 300 grams of paneer, cut into small cubes, to the gravy. Gently mix to coat the paneer. Cover the kadai and cook on low flame for another .

Step 12: Serve

Your delicious, rich, and creamy Paneer Butter Masala is ready. Serve hot, garnished with a cube of butter and fresh coriander leaves. Enjoy with roti, naan, or pulao.

Pro Tips

• To make the gravy richer and creamier, you can substitute the khoa and milk mixture with condensed milk.

• If using unsweetened khoa, add 1 teaspoon of sugar to balance the flavors. If your khoa is already sweet, you can skip adding sugar.

Variations

• For a spicier version, increase the number of dry red chilies or add a pinch of regular chili powder along with Kashmiri chili powder.

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Paneer Butter Masala – Restaurant Style