Paneer Butter Masala / Paneer Makhani / Cottage Cheese in Butter Sauce   

It is a popular mouth watering creamy and light buttery flavoured North Indian dish. It is one of the most popular dish in any of the Indian restaurants nowadays. Paneer cubes are simmered lightly with a rich buttery onion - tomato sauce and spices, flavoured with dry fenugreek leaves and enriched with cashew nut paste.

People crave for this dish and rate number one among the top most ordered dish from any restaurant menu. I have done my best to learn about this dish in order to acquire a restaurant quality and home made taste.

Preperation Time: 15 min.

Cooking Time: 30 min.

Serves: 4


Paneer - 200gms (diced)

Tomato - 4 small (cut into quarter pieces)

Oil - 1 Tbsp

Onion - 2 big (diced)

Cashew nuts - 10 - 12

Butter - 1 Tbsp

Ginger garlic paste - 1 Tbsp

Cashmere chilli powder - 2 - 2 1/2 tsp

Garam masala - 1 1/2 tsp

Kasoori methi (dried fenugreek leaves) - 1/2 Tbsp

Yogurt - 4 Tbsp (see measurements here)

Fresh cream - 1/4 cup

Salt - to taste

Preparation Method

Puree the tomatoes in a blender and keep aside.

Soak cashew nuts in hot water for about 10 min.

Heat 1 Tbsp oil in a pan and fry onion till it turns light golden in colour. Then blend this along with cashew nuts to a smooth paste and keep aside. (Make sure that there won’t be any lumps of cashew)

In the same pan, heat 1 Tbsp of butter.

Add ginger - garlic paste and sauté till the raw smell disappears.

Add onion - cashew paste and saute for a while.

Add tomato puree and saute for about 3 minutes on a low flame.

Then add cashmere chilli powder, kasoori methi and garam masala. Saute for a minute.

Then add yogurt and stir well.

Add water if needed.

Add salt and paneer. Cover and cook for about 5 minutes on a low flame .

Finally add cream and stir gently.

Turn the flame off and add chopped coriander leaves.

Drizzle melted butter on top ,if desired.

Serve with Roti or Naan and enjoy!!


You can fry the paneer and add it to the gravy. If you prefer frying the paneer then fry and then soak it in the hot water.

To get nice red color to Paneer Butter Masala in a natural way, use kashmiri chilli powder. It gives nice red colour to the gravy.

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