Home-style paneer butter masala

A rich, mildly spiced North Indian curry with paneer in a creamy tomato-butter sauce.

Paneer Butter Masala. Photo: Pexels/Harish P.
2 min read  |  Published: 23 Jun 2026 Updated: 25 Jun 2026, 01:42 pm

Ingredients2 tbsp butter1 tbsp oil1 medium onion, roughly chopped4 medium tomatoes, roughly chopped10–12 cashew nuts3–4 garlic cloves1-inch piece ginger1 bay leaf1 tsp Kashmiri red chilli powder1 tsp coriander powder½ tsp garam masala¼ tsp turmeric powderSalt to taste½ cup cream (or cooking cream)½ cup water (adjust as needed)250 g paneer, cubed1 tbsp butterGarnish1 tbsp cream1 tsp crushed dried fenugreek leaves (kasuri methi)Fresh coriander leavesPreparationHeat oil and 1 tbsp butter in a pan.Add onion, tomatoes, cashews, ginger, and garlic.Cook for 8–10 minutes until tomatoes soften completely.Cool slightly and blend into a smooth paste.In the same pan, melt the remaining butter.Add bay leaf and sauté briefly.Add the blended paste and cook for 4–5 minutes.Stir in chilli powder, coriander powder, turmeric, sugar (if using), and salt.Cook until the mixture thickens and the butter begins to separate.Add water and simmer for 3–4 minutes.Stir in cream and garam masala.Add crushed kasuri methi.Lightly sauté paneer cubes in butter for 1–2 minutes (optional).Add paneer to the gravy and simmer gently for 2–3 minutes.Avoid overcooking, which can make paneer tough.Garnish with cream and fresh coriander.Serving suggestions

Paneer butter masala goes well with  butter naan, tandoori roti, jeera rice, etc.

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