Butter Paneer Masala

Butter Paneer is a rich, creamy, silky curry based dish made with paneer, fresh cream, spices, onion, tomato, cashews and butter. It is one of the most popular paneer dishes in India similar to kadai paneer, matar paneer, palak paneer etc..,

When the restaurant-style dish can be made at home with the same taste and texture, is the recipe not exciting? This is one such exciting recipe!! It doesn’t take much time too.

I used to make butter paneer for my sister-in-law and co-sister whenever I visit India long ago. They used to like it. By sharing the recipe, many can make this mouth-watering dish!!

To make butter paneer masala, first onions, tomatoes (use riped one’s), cashews along with spices are sauted and blended to smooth, silky texture curry base. Then it is further simmered along with paneer, garam masala and kasuri methi. Finally fresh cream and coriander leaves are added.

Is it not very simple to make? Paneer butter masala goes well with butter naan, chapati, roti, plain basmati rice, jeera rice etc..,

Let us check the recipe of this mouth-watering, restaurant-style, creamy, silky, buttery- Butter Paneer Masala❤


  • Paneer- 20 big pieces ( approx. 250 gms)
  • Onion- 2 medium sized ( chopped)
  • Tomato- 3 large ( chopped)
  • Cashews- 15
  • Butter- 2 and a half tbsp
  • Oil- 2 tbsp
  • Ginger garlic paste- 1 tsp
  • Red chilli- 4
  • Red chilli powder- 1 tsp ( kashmiri red chilli powder can be used)
  • Cumin seeds- 1 tsp
  • Garam masala- 1/2 tsp
  • Sugar- 3/4th tsp ( good to add as it balances the spice and tanginess)
  • Bay leaf- 1
  • Cinnamon stick- 1 inch
  • Cardamom pods- 2
  • Kasuri methi- 1 tsp ( crushed)
  • Fresh cream- 2 tbsp
  • Coriander leaves- 2 tbsp
  • Salt- as needed.


Pour some oil in a pan and saute the paneer cubes evenly on all the sides to golden. I do this normally but this step can be skipped and paneer cubes can be added fresh.
Repeat the process and saute 20 pieces of paneer if doing it.
Heat 1 tbsp of oil and 1 tbsp of butter. Butter should be heated along with oil. First pour oil and then butter. Using only butter will burn it.
Add 1 tsp of cumin seeds.
Now add the chopped onions.
Once onions are translucent, add ginger garlic paste. Saute till the raw smell of ginger garlic goes away.
Then add the red chillies.
Add the cashews. Saute everything together till the red chillies turn crisp.
Then add the chopped tomatoes. Saute them.
After 2 minutes, add 3/4th tsp of sugar and needed salt. Sugar balances the spice and the tanginess. It is good to add it. Saute till the tomatoes turn soft and everything gets combined.
Tomatoes are soft and everything is combined. It should reach this consistency.
Let it cool down to normal room temperature.
Once it cools down, move it to a mixer jar or blender. It should be blended to smooth and fine like a butter. You can sprinkle little water and blend. But do not pour water.
See it is fine, smooth like a butter. If your paste is not fine, smooth, strain it through a fine strainer into a bowl. This consistency is a must.
Now in the same pot or kadai, heat 1 tbsp of oil and 1 tbsp of butter.
Add bay leaf, cinnamon stick and 2 cardamom pods.
Add the smooth, silky and buttery paste to it.
Add water to the same mixer jar or the blender used and adjust the consistency. I added 200 ml. of water. You can adjust the consistency as per your desire. The gravy, I have shared is little thick.
Add 1 tsp of red chilli powder.
Adjust the salt.
Cover the pot or kadai with a lid and cook it for 12 minutes in low to medium flame or the gravy will splatter out. Stir it now and then.
After 12 minutes, open and add the paneer pieces.
Then add the garam masala and crushed kasuri methi powder. Mix everything. Cook for a minute in low to medium flame.
You can check for salt now. If water consistency should be adjusted, it can be done now too. But I didn’t add any water.
Pour 2 tbsp of fresh cream.
Then garnish with coriander leaves.
Cover it with a lid and cook in low flame for 5 minutes. If you didn’t saute the paneer cubes in the beginning, cook in low flame for 10 minutes.
Once opened. Ready. You get this color. Before serving 1/2 tbsp of butter can be added.


  • Kashmiri red chilli powder can be used as it gives good color and mild spice.
  • Red chilli powder can also be added directly to oil and butter along with bay leaves, cinnamon stick and cardamom in low flame instead of adding after the blended onion tomato paste.
  • Ghee can be used instead of butter too.
  • Adjust the gravy consistency by adding little more water as per your desire. Do not make it watery.
  • Please go through all the explanations and the instructions from the beginning carefully.