Paneer Butter Masala


I prepared Paneer at home and thought of preparing Paneer Butter Masala. I searched on google for many sites for this recipe but finally decided to prepare as per the instructions given in the book called Panner Adigegalu by Vijayalakshmi Reddy. This book is in Kannada, has about 120 Paneer recipes and one can get the English version of this book too in the book stores or online here. Paneer Butter Masala came out really well and all my family members savored it including my little one.

Paneer Butter Masala
Paneer Butter Masala

Paneer Butter Masala is rich in taste but comes with high calories as it has lots of milk derivatives like, Paneer, Curd, Cream, Butter and Ghee. It can be prepared occasionally if not regularly. I prepared Chapati and also we bought Tandoori Roti from restaurant when we prepared this dish. Also, I have to mention that I added Garam Masala prepared by me at home. This Garam Masala Powder along with Kasoori Methi gave good aroma and taste to the curry. Just try out the delicious Paneer Butter Masala and serve with Roti, Naan and Chapati.

Paneer Butter Masala Ingredients:

  • Paneer or Cottage Cheese – 200 Grms
  • Curd or Yogurt – 1/4 Cup
  • Unsalted Butter – 2 Tbsp
  • Thick Milk Cream – 1/2 Cup
  • Ghee or Clarified Butter – 1 Tbsp
  • Oil – 2 Tbsp
  • Cashew Nuts – 10-12
  • Small sized Onions – 2
  • Small sized Tomatoes – 2
  • Ginger + Garlic Paste – 1 tsp
  • Green Chillies – 3
  • Tandoori Color – 1/8 tsp (Optional)
  • Garam Masala Powder – 1/2 tsp
  • Red Chilli Powder – 1 to 1 and 1/2 tsp
  • Dhaniya or Coriander Powder – 1 tsp
  • Jeera or Cumin Powder – 1/2 tsp
  • Turmeric Powder – 1/2 tsp
  • Kasoori Methi or Fried Fenugreek Leaves – 1 and 1/2 Tbsp
  • Salt
  • Oil – For Deep Fry

Time to Prepare: 30-40 min

How to Make Paneer Butter Masala :

  1. Soak the Cashew Nuts in hot water for 15-20 minutes (helps to soften Cashew Nuts and to obtain smooth paste) before preparation and grind into a smooth paste.
  2. Cut the Green Chillies lengthwise. Prepare Onion paste by cutting the Onions and grinding into a paste in a mixer grinder. Also prepare Tomato Puree by grinding the chopped Tomatoes (This time I peeled the outer covering of the Tomatoes) in a mixer grinder; keep aside.
  3. Cut the Paneer or Cottage Cheese into small sized cubes and deep fry in Oil until these cubes turn golden brown in color. Transfer them immediately into the Curd and soak for 10 minutes to soften them.
    Paneer Butter Masala
    Paneer Butter Masala
  4. Heat Oil + Ghee in a pan, add Onion Paste from Step 2 and Ginger + Garlic paste and heat until the raw smell of the Onion disappears – this may take 2-3 min. Then add the Green Chillies and fry for a minute and then add Tomato Puree and heat for 5 more minutes.
  5. Now add the powders like, Turmeric Powder, Red Chilli Powder, Dhaniya/Coriander Powder, Jeera/Cumin Powder, Tandoori Color (optional and I did not use them) and Salt and mix well. Allow the ingredients to cook for a while.
  6. At this stage add Milk Cream and sufficient water and mix well and cook until the bubbles start appearingin the pan. Now add the Cashew Nut Paste (from Step 1), fried and curd soaked Paneer (from Step 3) to the pan and cook until the gravy turns slightly thick. This may take about 3 minutes.
  7. Finally add the Butter, Kasoori Methi or Dried Fenugreek Leaves (by crushing the leaves between the palms) and cook for 2 minutes. Switch off the flame.

Now the Paneer Butter Masala is ready to serve with Roti, Naan, Chapati or Kulcha.

Paneer Butter Masala
Paneer Butter Masala


  1. Instead of adding entire 1/2 Cup cream, you can add 1/4 Cup cream and 1/4 Cup Milk also. I added Amul Milk Cream and taste was good.
  2. I never use Tandoori Color for my preparations at home; so the color of the Paneer Butter Masala was bit lighter than what we get to see in restaurants.
  3. Note that I prepared Paneer and Garam Masala Powder at home and used it for this Curry. Especially the home made Garam Masala Powder gives good aroma and taste to Paneer Butter Masala.


  1. Hi Hema,
    Need a clarification from step 6. Kindly clarify.
    Step 6 has “Now add the Cashew Nut Paste (from Step 1), fried and ”

    What is “fried” here? When I read the entire step 6, I seem to be missing something. Please let me know.


    Warm Regards,

  2. Hi Hema,

    I tried this one just the way you have told and it came out really awesome, everyone at home loved it!!

    How about a recipe to make paneer at home, coz all the ones I get from shops are little hard..



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