Creamy, Rich, and Totally Addictive: The Only Paneer Butter Masala Recipe You’ll Ever Need

Our guide on how to make Paneer Butter Masala for you to try at home.

Paneer Butter Masala, also known as Paneer Makhani, is one of the most popular and beloved dishes in Indian cuisine. It’s a rich, creamy, and mildly spiced curry made with paneer (Indian cottage cheese), tomatoes, butter, and cream. This dish has a beautiful balance of tangy, sweet, and savory flavors, making it a perfect accompaniment to naan, roti, or rice.

Paneer Butter Masala is a crowd-pleaser with its creamy, mildly spiced gravy and soft cubes of paneer. Whether you’re hosting a dinner party or simply craving a delicious, comforting meal, this dish is sure to satisfy. Serve it with naan, roti, or rice for a complete meal that showcases the best of Indian cuisine. Enjoy the flavors of the rich tomato-based sauce, the slight sweetness from the cashew paste, and the luxurious finish of butter and cream.

Here’s a step-by-step guide to making Paneer Butter Masala, with tips for perfecting the dish and information on its calorie content.

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Best Time to Eat Paneer Butter Masala

Paneer butter masala is best served for lunch or dinner, especially when you’re in the mood for something hearty and satisfying. It’s also a favorite on weekends or festive occasions when rich, comforting meals are meant to be savored slowly.

How to Partner Paneer Butter Masala

Pair this dish with buttery naan, jeera rice, or parathas to soak up the luxurious sauce. Add a side of cucumber raita, pickled onions, or papad for texture and balance. For drinks, a chilled mango lassi or a glass of dry white wine complements the richness beautifully.

One of the biggest misconceptions about paneer butter masala is that it’s “just another curry.” In reality, this dish has a complex history rooted in the evolution of North Indian cuisine—specifically Punjabi cooking. Reducing it to generic “Indian food” erases the cultural and regional nuances that make it special.

Another issue is that many Westernized versions of the dish use excessive cream, sugar, or even ketchup to imitate the richness—resulting in an overly sweet, one-dimensional dish. Authentic paneer butter masala balances sweetness with spice, richness with acidity, and creaminess with depth. It’s not meant to taste like dessert.

Lastly, there’s often confusion between Paneer Butter Masala, Shahi Paneer, and Paneer Tikka Masala. While they share similar ingredients, they are not interchangeable. Each has its own preparation style, spice profile, and cultural identity. Honoring these differences helps preserve the integrity of Indian culinary traditions.

How to Make Paneer Butter Masala

Paneer Butter Masala Recipe Ingredients

For the Gravy:
200-250g paneer (cubed)
3 large tomatoes, chopped
1 large onion, finely chopped
2-3 green chilies, slit (optional, for mild heat)
1 tablespoon ginger-garlic paste
2 tablespoons butter
1 tablespoon oil
1/2 cup heavy cream
1/4 cup cashews, soaked in warm water for 15 minutes
1 teaspoon cumin seeds
1/2 teaspoon garam masala
1/2 teaspoon turmeric powder
1 teaspoon Kashmiri red chili powder (for color, not too spicy)
1 teaspoon ground coriander
1 teaspoon ground cumin
1 tablespoon dried fenugreek leaves (kasuri methi)
Salt, to taste
1 teaspoon sugar (optional, to balance flavors)
Fresh coriander leaves, for garnish

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Step By Step How to Make Paneer Butter Masala

Prepare the Paneer

Cut the paneer into bite-sized cubes. If using store-bought paneer, you can lightly fry the paneer cubes in a little oil or butter until golden brown to enhance the flavor and texture. Set aside.

Make the Cashew Paste

Drain the soaked cashews and blend them into a smooth paste with a few tablespoons of water. This cashew paste will add richness and creaminess to the curry.

Cook the Gravy

Heat 1 tablespoon oil and 1 tablespoon butter in a large pan over medium heat. Add cumin seeds and let them splutter. Then add the chopped onions and green chilies (if using) and sauté until the onions turn golden brown.

Add ginger-garlic paste: Stir in the ginger-garlic paste and sauté for 1-2 minutes until the raw smell disappears.

Add the chopped tomatoes, turmeric powder, ground coriander, ground cumin, and Kashmiri red chili powder. Cook until the tomatoes soften and the oil begins to separate from the mixture, about 10 minutes.

Remove the mixture from the heat and let it cool slightly. Blend the cooked onion-tomato mixture into a smooth paste, adding a little water if necessary. Return this smooth sauce to the pan.

Finish the Curry

Stir the cashew paste into the blended gravy and cook on medium heat for 5-7 minutes, stirring occasionally. Stir in the garam masala, kasuri methi (dried fenugreek leaves), and sugar (if using). Add the heavy cream and stir well, allowing the sauce to simmer for another 2-3 minutes.

Gently fold in the paneer cubes and let the curry simmer for 5 minutes, allowing the paneer to absorb the flavors. If the curry is too thick, add a little water or cream to reach your desired consistency. Adjust salt and sugar to taste.

Serve

Garnish with fresh coriander leaves and an extra drizzle of cream or butter, if desired. Serve hot with naan, roti, or steamed basmati rice.

Tips For Making Paneer Butter Masala

Fresh, soft paneer makes a big difference in this dish. If possible, use homemade paneer or buy high-quality paneer from a local Indian grocery store. Soak store-bought paneer in warm water for 10 minutes to soften it before using.

Kashmiri chili powder adds a vibrant red color to the dish without making it too spicy. If you prefer more heat, you can use regular chili powder or add green chilies to the gravy.

Blending the onion-tomato mixture creates a smooth, velvety texture for the gravy. For an even creamier consistency, strain the gravy after blending.

While it’s tempting to cut down on butter and cream for a lighter version, these ingredients are what give Paneer Butter Masala its rich and luxurious flavor.

Lightly frying the paneer in butter or oil before adding it to the curry adds a slight golden crust and enhances its flavor, but you can skip this step if you prefer soft paneer.

The gravy has a slight natural sweetness from the tomatoes and cream, but if you like your curry slightly sweeter, add a teaspoon of sugar to balance the flavors.

How Many Calories Have Paneer Butter Masala

Calories: 350-400 kcal
Protein: 10-12g
Fat: 25-30g (from butter, cream, and paneer)
Carbohydrates: 12-15g (from tomatoes, onions, and cashews)
Fiber: 2-3g

Final Thoughts

Paneer Butter Masala is a true gem of Indian cuisine—rich, vibrant, and full of character. It’s the kind of recipe that feels indulgent yet soulful, simple to make yet deeply rooted in culinary tradition.

Once you learn to make it from scratch, you’ll gain a deeper appreciation for its balance and beauty. It’s not about drowning everything in cream—it’s about coaxing layers of flavor from everyday spices and ingredients. And the result is always worth the effort.

Whether you’re vegetarian or just looking to explore more global flavors, this dish belongs in your regular rotation. With every spoonful, you’re not just tasting food—you’re tasting heritage, craft, and comfort all in one.