Step 1: Prepare the Base Gravy Ingredients

In a pot, combine 2 roughly chopped large onions, 4 roughly chopped medium tomatoes, 1/4 cup cashews, 1 inch ginger piece, 4-5 garlic cloves, and 2 optional green chilies. Add 1 cup of water. Bring to a boil and then simmer for 10-12 minutes until all vegetables are soft and tender.

Step 2: Blend and Strain the Gravy Base

Remove the pot from heat and let the boiled mixture cool down completely for about 15-20 minutes. Once cooled, transfer the mixture to a blender and blend into a very smooth paste. For a silky texture, strain the blended paste through a fine-mesh sieve into a bowl, pressing down on the solids to extract all liquid.

Step 3: Temper Whole Spices

Heat 2 tbsp butter and 1 tbsp oil in a large pan or kadai over medium heat. Once hot, add 1 bay leaf, 1 inch cinnamon stick, and 2-3 green cardamom pods. Sauté for 30 seconds until the spices become fragrant.

Step 4: Cook the Gravy Paste

Add the strained tomato-onion paste to the pan with the tempered spices. Cook on medium heat for 10-15 minutes, stirring occasionally, until the gravy thickens and the oil starts to separate from the sides of the pan. This step is crucial for flavor development.

Step 5: Add Dry Spices

Reduce the heat to low. Add 1/2 tsp turmeric powder, 1 tsp red chili powder, 1.5 tsp coriander powder, and 1/2 tsp cumin powder to the gravy. Mix well and cook for 1-2 minutes, stirring continuously, until the raw smell of the spices disappears.

Step 6: Adjust Consistency and Simmer

Add 1/2 cup of water (or more, as needed) to adjust the gravy to your desired consistency. Bring the gravy to a gentle simmer, allowing the flavors to meld together for 2-3 minutes.

Step 7: Add Paneer and Season

Gently add the 250g cubed paneer to the simmering gravy. Season with salt to taste, 1 tsp sugar, and 1 tsp garam masala. Mix everything gently to avoid breaking the paneer cubes. Cook for 3-4 minutes, allowing the paneer to absorb the flavors.

Step 8: Final Touches

Crush 1 tbsp Kasoori Methi (dried fenugreek leaves) between your palms and add it to the gravy. Stir in 1/4 cup fresh cream. Cook for just 1 minute more, then turn off the heat to prevent the cream from splitting.

Step 9: Garnish and Serve

Garnish the Paneer Butter Masala generously with freshly chopped coriander leaves. Serve hot with naan, roti, paratha, or steamed basmati rice for a complete meal.

• Soak cashews in warm water for 15-20 minutes before blending for an extra smooth gravy.

• Cook the tomato-onion paste thoroughly until the oil separates to ensure a deep, rich flavor.

• Strain the blended gravy through a fine-mesh sieve for a silky, restaurant-quality texture.

• Adjust the amount of sugar and red chili powder according to your preference for sweetness and spice.

• Add 1/2 cup of green peas along with the paneer for Matar Paneer Butter Masala.

• For a vegan version, replace paneer with firm tofu, butter with oil or vegan butter, and fresh cream with cashew cream or coconut cream.

• Add a pinch of nutmeg powder for an additional layer of aroma.