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Paneer Butter Masala – Restaurant Style

👨‍🍳Medium🍽️Dinner🥪Lunch🥬Vegetarian

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 involves preparing a flavorful base with onions, tomatoes, cashews, and spices, then enriching it with khoa, cream, and paneer for a truly indulgent dish.

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Tap an ingredient to mark it ready0 of 19 ready

All Ingredients - For the Gravy Base

  1. Oil 1 tbsp
  2. Onion 2 nos, chopped
  3. Red Chili 10 nos
  4. Tomato 3 nos, chopped
  5. Cashew Nuts 1/4 cup
  6. Salt 1 tsp

All Ingredients - For the Paneer Butter Masala

  1. Ghee 3 tsp
  2. Kashmiri Chili Powder 2 tsp
  3. Water 1/4 cup
  4. Garam Masala 1 tsp
  5. Kasuri Methi a few
  6. Coriander Leaves a handful
  7. Unsweetened Khoa 50 gms
  8. Milk 3 tbsp
  9. Fresh Cream 2 tbsp
  10. Sugar 1 tsp
  11. Salt 1 tsp
  12. Paneer 300 gms
  13. Butter for garnish

🍳Tools You'll Need

  • Kadai
🌶️Spice level: Hot🌶️🌶️🌶️🌶️Pack water — this one bites back.
From:Red chiliKashmiri chiliGaram masala
🔄Don't have an ingredient? Try these swaps7 tips
  • 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

Take a kadai and pour 1 tablespoon of oil. Add 2 large chopped onions and until they are translucent.

Step 2: Add Red Chilies

Add 10 red chilies to the onions and continue to cook.

Step 3: Add Tomatoes and Cashews

Add 3 large chopped tomatoes and 1/4 cup of cashew nuts to the mixture.

Step 4: Season with Salt

Add 1 teaspoon of salt and cook until the tomatoes are nice and mushy.

Step 5: Cool and Grind the Mixture

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

Step 6: Prepare the Base

To the same kadai, add 3 teaspoons of ghee. Add 2 teaspoons of Kashmiri chili powder and give it a quick mix on medium flame to prevent burning.

Step 7: Add Ground Paste and Water

Add the ground tomato, onion, and cashew paste to the kadai. Rinse the mixer jar with 1/4 cup of water and add it to the gravy, mixing well.

Step 8: Add Spices and Herbs

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

Step 9: Cook the Gravy

Close the kadai with a lid and cook on low flame for about .

Step 10: Prepare Khoa Mixture

In a separate mixer jar, grind 50 grams of unsweetened khoa with 3 tablespoons of milk to a fine paste. This mixture adds richness and creaminess.

Step 11: Add Cream and Khoa Mixture

Add 2 tablespoons of fresh cream and the ground khoa-milk mixture to the gravy. Add 1 teaspoon of sugar (adjust to taste, or omit if khoa is sweet) and 1 teaspoon of salt. Mix everything thoroughly.

Step 12: Add Paneer and Finish Cooking

Add 300 grams of paneer cut into small cubes. Close the kadai with a lid and cook on low flame for another .

Step 13: Serve

Your rich and creamy Paneer Butter Masala is ready. Serve hot, garnished with a cube of butter, and enjoy with roti, naan, or pulao.

Pro Tips

• Ensure onions are translucent before adding other ingredients for a smooth base.

• Cool the mixture completely before grinding to achieve a fine, smooth paste.

• Adjust sugar quantity based on the sweetness of your khoa or if using condensed milk.

• Keep the flame on medium when adding chili powder to prevent burning and maintain color.

Variations

• Substitute khoa and milk with condensed milk for added sweetness and richness.

• For a spicier version, increase the number of red chilies or add green chilies.

• Add a pinch of cardamom powder for an aromatic touch.

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