Paneer Butter Masala Recipe | Paneer Recipes

Paneer Butter Masala – A deliciously rich and luscious tomato-based gravy cooked in butter with soft or fried chunks of paneer.

Paneer Butter Masala

Paneer butter masala is a deliciously rich and luscious tomato-based gravy cooked in butter with soft or fried chunks of paneer. It tastes so good when cooked in home churned butter. Another important factor contributing to the taste and colour of the gravy is tomato. If you get red and ripe tomatoes, then it is time to make this irresistibly good paneer butter masala  I got a beautiful red colour without adding any food colour. In this recipe, we are going to add a tablespoon of tomato ketchup to enhance the colour.

Paneer butter masala is one of the best accompaniments for naan, roti and the like. This also pairs up well with pulao. Cashewnuts and milk/fresh cream impart a creamy flavor to this gravy. The recipe given here is for a gravy that is a bit spicy but not too much. I also make paneer butter masala by pressure cooking onions, tomatoes and then grinding them to a paste. That version is simple, creamier and requires less oil/butter. I will post that recipe soon. Here is how I make this extremely delicious paneer butter masala.

recibites_iconThe palace chickens of Mughals were fed by hand with pellets flavored with saffron and rose water, and massaged daily with musk oil and sandalwood. (Source – Feasts and Fasts : A History of Food in India)

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Paneer Butter Masala Recipe:

Cuisine : North Indian 
Category : Side dish for roti / pulao
Makes : 5 servings

Preparation Time : 10 min
Cooking Time : 20-25 min

Paneer Butter Masala – ReciCode

Heat oil in a pan → Fry the cubed onions, ginger garlic paste & cubed tomatoes one by one → Saute till they are just cooked → Grind to a fine paste with cashewnuts soaked in water → Heat  oil + butter in a pan → Fry red chilli powder, coriander powder, cumin powder, garam masala over low flame → Add tomato paste & cook till the oil begins to separate → Add tomato ketchup, water → Cook for 30 seconds → Add milk & mix well → Add cubed paneer & simmer for 5 min → Switch off the flame → Sprinkle crushed kasoori methi & add a dollop of butter → Serve hot.

1 cup : 240 ml


  • 1 & 1/2 cups Cubed Paneer (170 g)
  • 2 tsp Coriander Powder
  • 1 tsp Red Chilli Powder
  • 1 tsp Garam Masala
  • 1 tsp Cumin Seeds Powder
  • 1 tbsp Tomato Ketchup
  • 2 & 1/2 tbsp Oil
  • 1 tbsp + 1 tsp Butter 
  • 1/8 cup Milk or 1 tbsp Fresh Cream
  • 1 tsp Kasoori Methi
  • Salt as required

  For grinding:

  • 1 cup Cubed Onions
  • 3 & 1/2 cups Cubed Tomatoes
  • 2 tbsp Ginger Garlic Paste
  • 8 whole Cashewnuts (soak in water for 15 min)

How to make Paneer Butter Masala?

1. Put the cubed paneer in salted hot water. I feel this makes the paneer soft. This step is optional.

2. Heat 1 & 1/2 tbsp oil in a pan. Add the cubed onions and sprinkle some salt. Saute till they turn translucent.

3. Add the ginger garlic paste and fry till the raw smell goes off completely.

4. Now add the cubed tomatoes. Sprinkle some salt. Saute till the skin of tomato shrinks and the tomatoes are just cooked. This need not be fried till the oil separates.

5. Take the cashewnuts (soaked in water) in a mixer grinder jar. Add some water and grind to a paste. Add the tomato mixture to this and blend to a smooth paste.

6. Heat oil and butter in a pan. Add red chilli powder, coriander powder, garam masala powder and cumin seeds powder. Fry for 4-5 seconds over low flame, taking care not to burn the spices.

7. Add the tomato paste and mix well (This paste splatters around the pan. So cover while cooking). Cook over medium flame till the oil begins to separate.

8. Add the tomato ketchup and mix well. This is added to give a mild sweetness and also helps to enhance the colour of the gravy. Add some water if the gravy is too thick. Let it boil for 30 seconds.

9. Add milk or fresh cream and mix well.

10. Take out the paneer from the hot water and add to the gravy. Mix gently taking care not to break the paneer pieces. Simmer the gravy for 5 minutes.

11. Switch off the flame. Crush kasoori methi between your palms and sprinkle over the gravy. Add a tsp of butter on top if you want. Mix gently. Serve this irresistibly delicious paneer butter masala with any indian flatbread, steamed rice or pulao.


  • You can shallow fry the paneer till light brown in oil, before adding them into the gravy.
  • Choose red and ripe tomatoes to get a vibrant red colour.
  • Sour tomatoes spoil the taste of the whole dish. If you still want to make, you can reduce the quantity of tomato and increase the quantity of onion. The taste will be different but good.
  • Onions increase the quantity of the gravy. You can prepare this gravy even without the onions.
  • Tomato sauce is optional. It enhances the colour of the gravy and adds a mild sweetness. If you do not have tomato sauce, you can add 1/2 tsp sugar to impart a mild sweetness to the gravy.
  • Adding milk or fresh cream gives a creamy flavor. You can increase the quantity if you want the gravy to be creamier.
  • Do not miss kasoori methi as it adds an excellent flavor to the gravy.


Happy Cooking!


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