Paneer Butter masala recipe

Paneer butter masala also known as paneer makhani . It is one of my favorite recipes to make, for special occasions like festivals and house parties. Paneer butter masala recipe is a simple recipe but an elaborate one. This Paneer makhani or paneer butter masala is a gravy tempered with spices and cooked in butter.

There important steps that need to be followed for this paneer butter masala recipe that shouldn’t be missed. This paneer butter masala recipe requires pre preparation of at least half an hour. excluding the cooking time which should take about thirty to forty minutes. Even though this paneer butter masala recipe is an elaborate one its an absolutely delicious dish.

Tastes best with rotis Easiest everyday Roti recipe (Whole wheat flat bread) , plain parathas or naans. This particular recipe can serve up to 3 to 4 people. Also do not skip, any step or substitute any other ingredient, in place of the given ingredients. Because it would change the texture and taste of the dish.

I love making this dish when I have time to cook an elaborate meal, and enjoy an absolutely delicious meal.


  • Paneer – 250 gms
  • Butter – 2 tbsp
  • Boiled onion puree – 1 cup
  • Ginger garlic paste – 2 tsps
  • Red chilli powder – 1 tsp
  • Turmeric powder – ½ tsp
  • Garam masala – ½  tsp
  • Coriander powder – 1 tsp
  • Cumin powder – 1 tsp
  • Salt to taste
  • Water as required
  • Boiled tomatoes made into puree – 1 cup
  • Fenugreek leaves – 1 tsp
  • Cream – 2 tbsps
  • Cashew puree – 3 tbsp
  • Coriander leaves – for garnishing


Pre preparation for paneer makhani

This particular recipe requires some preparation to be done before we actually start making the dish. The main preparations are making the cashew nut puree , onion puree , tomato puree and ginger garlic puree. All of them should be made separately as we are going to cook them at different stages in the recipe .

So first start with cashew nut puree because this takes a long time .

Cashew puree

Soak 9 to 10 cashews nuts in 3tbsp of milk ,for an hour. And then blend it into a fine paste.

At the beginning, you can just soak these cashew nuts for one hour and in the meanwhile prepare the other purees, as we require this puree at a later stage in the recipe its ok to blend it afterwards.

Onion puree

For onion puree, take 2 medium sized onions peel them and then boil them for about 5 to 10 minutes in water with about two pinches of salt. Once the onions become soft. Remove them from the water, let them cool completely and then blend them to make a fine paste of it.

You can also roughly chop the onions before putting them to boil.

Tomato puree

The next step is making tomato puree for that boil tomatoes in water for about 5 to 10 minutes. Once you see that the tomatoes have become soft. and their peel has started to tear. Remove them from the water. Let them cool for a moment and then peel the skin of the boiled tomatoes with your hands. Make sure the tomatoes are not too hot. Cool them off completely and then make a blended sine paste of the tomatoes.

Ginger garlic paste

Take about 6 to 7 cloves of garlic and peel them , to it add ginger about an inch size and peel and roughly chop it . put this into the blender and make a fine paste .

Optional step

There is also an easy way of making this preparation quickly . To make the pastes quickly you can pressure cook them. This is an optional step . If you are following the steps mentioned above, you don’t need to follow these steps. You can cook them in the pressure cooker but very importantly in separate vessels. For that take the onions peel them, and roughly chop them, and add them, to one of the pressure cooker vessel tins , and add about half cup water to it, and about one pinch of salt.

In another tin of the pressure cooker add roughly chopped tomatoes and half cup of water .

Arrange these vessels one above the other in the pressure cooker (as you normally do for dal and rice ) .Cover the cooker with the lid and cook it till at least 3 whistles.

Cool the pressure cooker completely . take the boiled onions and tomatoes out of the pressure cooker , let it cool down completely and then blend them into a fine paste but separately , that is make onion paste separately and tomato paste separately .

The only difference, in this optional step is, that instead of boiling the onions ,and the tomatoes in a vessel . We are boiling them in the pressure cooker to save time.

You can follow any one of those two steps.

Keep all three pastes ready . That is the onion paste the tomato paste and the ginger garlic paste before starting to cook this dish.

To make the paneer makhani gravy

Heat a kadhai add 2 tbsp of butter to it and let it melt and heat up. Make sure not to burn it so keep the flame on low to medium. Make sure to add only butter. It gives a very distinct creamy taste to the gravy. Using oil or ghee instead of butter would not give it the same creamy taste. So, make sure to add butter.

Then to the butter add one cup boiled onion puree and stir well. Keep stirring and cooking it, till it change its color slightly. We don’t want the onions to be raw so cook them really well.

Once the onion puree changes its color. It’s now time to add 2 tsps of ginger garlic paste. And keep stirring till the raw flavor of the ginger and garlic goes away. Stir it well so that it doesn’t stick to the bottom of the kadhai. Once the rawness of the ginger garlic paste goes away ,and it changes color slightly. It’s now time to add the powdered spices.

Add 1 tsp Red chilli powder , ½ tsp turmeric powder , ½ tsp garam masala powder , 1 tsp coriander powder , 1 tsp cumin powder and about 1 tsp of salt and stir well.

Stirring the spices well with the onion and ginger garlic paste is very important . the pastes should get coated with the spices really well and should start leaving oil . if the mixture is becoming too dry or the spices and the pastes are sticking to the bottom of the kadhai add a little water about 1 tbsp and keep stirring it so that they don’t burn . mix them nicely till the spices are properly cooked and the water dries up completely .

Then add the boiled tomato puree to it , mix it properly and cover and cook this for about 10 to 15 minutes. Keep stirring in between if you want so that the mixture does not stick to the bottom of the kadhai. To cook tomatoes is important to remove its rawness and tangy flavor, if your tomatoes are too sour and tangy you can also add ½ tsp sugar here at this stage.

Once the puree reduces into half add 1 tsp of fenugreek leaves to it and stir.

To it add 2 tbsp of fresh cream and stir for 2 to 3 minutes. You can use store bought cream or homemade fresh cream (malai/cream that floats on top of the milk after boiling it)

Then take the soaked cashews with milk and blend them into a fine paste add that paste to the gravy at this stage and mix well. Let it cook for about 2 to 3 minutes.

Now add about 2 cups of water and mix well. Also cut the paneer in to cubes and add that as well at this stage and mix well.

Now let the gravy cook till it reduces and forms a thick consistency

Once the gravy thickens garnish it with chopped coriander leaves or about one small cube of grated paneer before serving it .

This dish tastes best with rotis and plain parathas but can also be eaten with rice Jeera rice recipe, Steamed rice recipe. It’s usually eaten with rotis , plain parathas or butter rotis