🍽️ Paneer Butter Masala Recipe – Authentic Restaurant-Style (Full Guide)

Paneer Butter Masala served in a bowl with fresh cream garnish"

Paneer Butter Masala is one of the most beloved Indian curries, known for its rich, silky, and creamy texture. This classic North Indian dish combines soft paneer cubes with a smooth tomato-cashew gravy, flavored with butter, cream, and mild spices. Whether you enjoy it with naan, roti, or rice, this dish always stands out because of its luxurious taste and aroma.

This detailed recipe guide will help you prepare a perfect restaurant-style Paneer Butter Masala at home. Every step is easy to follow, and the ingredients are simple. The final dish is rich, flavorful, and perfect for lunch, dinner, or any special occasion.

⭐ What Makes This Recipe Special?

  • Extremely creamy and smooth gravy
  • Beautiful natural red color without artificial colors
  • Perfect balance of sweetness and spices
  • Soft, melt-in-the-mouth paneer
  • Just like restaurant quality but healthier

🧾 Ingredients

For Tomato–Cashew Base

  • 4 medium tomatoes, chopped
  • 15–18 cashews
  • 4–5 garlic cloves
  • 1 inch ginger
  • 1 small onion (optional)
  • 1 bay leaf
  • 2–3 cloves
  • 1 small cinnamon stick
  • 1 green cardamom
  • 1 tbsp oil
  • 1 tbsp butter
  • ½ cup water

For the Curry

  • 250g paneer, cut into cubes
  • 2 tbsp butter
  • 1 tbsp oil
  • ½ tsp turmeric powder
  • 1 tsp Kashmiri red chilli powder
  • ½ tsp regular red chilli powder
  • 1 tsp coriander powder
  • Salt to taste
  • 1 tsp sugar
  • 1 cup water
  • ½ cup fresh cream
  • 1 tsp kasuri methi
  • ½ tsp garam masala

🥘 How to Make Paneer Butter Masala (Step-by-Step)

Step 1: Prepare the Tomato-Cashew Puree

  1. Heat 1 tbsp oil + 1 tbsp butter in a pan.
  2. Add bay leaf, cardamom, cinnamon, and cloves.
  3. Add onion (optional) and sauté until soft.
  4. Add tomatoes, cashews, ginger, and garlic.
  5. Cook for 2–3 minutes.
  6. Add ½ cup water and cook for 10 minutes.
  7. Let it cool completely.
  8. Blend into a smooth puree.
  9. Strain the puree for a silky, restaurant-style texture.
    Paneer cubes frying in butter for Paneer Butter Masala recipe"

Step 2: Cook the Gravy

  1. Heat 2 tbsp butter + 1 tbsp oil in a pan.
  2. Add the strained puree.
  3. Add the spices:
    • ½ tsp turmeric
    • 1 tsp Kashmiri chilli
    • ½ tsp red chilli
    • 1 tsp coriander powder
    • Salt
  4. Cook on low flame for 8–10 minutes until the gravy thickens and oil separates.

Step 3: Add Water and Simmer

  1. Add 1 cup water to adjust the consistency.
  2. Add 1 tsp sugar to balance tomato tanginess.
  3. Simmer for 3–4 minutes.

Step 4: Add the Paneer

  1. Gently add paneer cubes into the gravy.
  2. Cook on low flame for only 3–4 minutes (do not overcook).

Step 5: Finish with Cream and Kasuri Methi

  1. Turn the flame very low.
  2. Add ½ cup cream and mix gently.
  3. Add 1 tsp crushed kasuri methi.
  4. Sprinkle ½ tsp garam masala.
  5. Turn off the heat.

Your creamy Paneer Butter Masala is ready!

🌿 Pro Tips for the Best Paneer Butter Masala

  • Use ripe tomatoes for a naturally sweet and bright red gravy.
  • Always strain the tomato-cashew puree for restaurant-like smoothness.
  • Do not add cream on high heat — it may split.
  • Soak store-bought paneer in warm water for 10 minutes for extra softness.
  • Kasuri methi is the secret ingredient for aroma and flavor.

🍽️ What to Serve With Paneer Butter Masala

Paneer Butter Masala pairs wonderfully with:

  • Butter naan
  • Garlic naan
  • Tandoori roti
  • Lachha paratha
  • Jeera rice
  • Steamed basmati rice

For a restaurant-style touch, drizzle extra cream on top before serving.

🔄 Recipe Variations (Make It Your Style)

1. No-Onion No-Garlic Version

Skip onion and garlic completely.
Add one extra tomato and 5–6 extra cashews for thickness.


The taste will still remain rich and creamy.

2. Spicy Dhaba-Style

Add:

  • 1 green chilli
  • Extra ½ tsp red chilli powder
  • ½ tsp black pepper
    Gives a hot and bold flavor.

3. Smoky Flavor (Dhungar Method)

  • Heat a small piece of charcoal till red hot.
  • Place it in a bowl inside the pan.
  • Add ½ tsp ghee on the charcoal.
  • Cover for 1 minute.
    Your curry will develop a beautiful smoky aroma.

4. Vegan Version

Replace paneer with tofu.
Replace cream with coconut cream or cashew cream.
Use vegan butter.

5. Low-Calorie Version

Use less butter + replace cream with milk.
The dish will still be flavorful but much lighter.

🥗 Nutrition Information (Per Serving)

  • Calories: 350–400 kcal
  • Protein: 10–12g
  • Carbohydrates: 12–15g
  • Fat: 28–32g
  • Calcium: High
  • Fiber: 2–3g

This is a rich and indulgent recipe — perfect for a special weekend meal.

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Homemade Paneer Butter Masala ready to serve with naan or roti"

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