This is a recipe for restaurant-style paneer butter masala recipe, with step by step pictures to guide you along the steps of making it. It's one of the most popular recipes on this blog with hundreds of people trying and liking it. A few ingredients are what truly make this recipe stand out, the actual cooking process is really simple and straightforward that even a beginner cook can ace it. So why wait, try this paneer butter masala recipe and let me know how you go!


What is Paneer Butter Masala
Well, it's one of the most popular recipes made with paneer or Indian cottage cheese around the world. Paneer is a hard, neutral "cheese" that lends itself really well to being cooked into a gravy or curry and this particular recipe for paneer butter masala is arguably the most delicious. It is creamy, delicate, has a slight tang from the added tomatoes, and has a kick from the spices.
You can adapt the flavour by adjusting the spices but in general, paneer butter masala is meant to be mild and creamy rather than a spicy curry. Paneer butter masala goes great with roti, vegetable pulao, chapati, puri, etc. You might also like matar paneer, it's a different gravy recipe and equally delicious.
Check out other paneer recipes if you love cooking with paneer!
Recipe Tips and Notes
This recipe is very straightforward but I do have some tips and notes for you to try it and really get a fail-proof paneer butter masala, especially if you are a beginner.
- If using store-bought paneer, buy a fresh or frozen block and cut it yourself rather than buying cubed frozen paneer. Paneer by the block tends to be more soft when cooked
- When pan-frying the paneer, take care to do it on low heat and don't overdo it. This will ensure the paneer doesn't get rubbery
- I have one ingredient in this recipe, the canned tomato paste, which really adds to the flavour of the dish. Try not to omit or substitute it. You need very less but the rest of the can may be used for pasta sauce, tomato soup or refrigerated until you need more so you don't waste it
- Adding ketchup may seem weird but trust me, it really elevates the taste of the gravy of this paneer butter masala
- If you want to make a vegan paneer butter masala option, substitute the paneer with tofu and the cream with cashew cream (soaked and ground cashew paste). You can also use regular oil instead of the butter
- You can use any cooking cream for the recipe, it doesn't matter
- The gravy will thicken as you keep it longer. Re-heating should bring the consistency back, or you can add some milk to make the gravy thinner before serving

Paneer Butter Masala Recipe
Ingredients
- 2 cups cubed paneer use fresh or thawed from frozen
- 1 cup sliced onions
- 1 teaspoon ginger garlic paste freshly made is better
- 1 tablespoon coriander powder
- 1 teaspoon garam masala
- ¼ teaspoon red chilli powder adjust to taste, this gives a mild gravy
- 1 tablespoon canned tomato paste 1 cup of fresh tomato puree from very ripe tomatoes
- 1 teaspoon tomato ketchup
- 1 tablespoon kasuri methi dry fenugreek leaves
- ¾ cup milk more or less depending on how thin you want the gravy
- ¾ cup cream
- 2 tablespoons butter
- 1 tablespoon oil
- Salt to taste
Instructions
- Heat 2 tablespoons butter in a pan and lightly fry the paneer cubes until light golden, turning frequently. Do this on a low flame so as not to overcook the paneer (see notes)
- Drain the paneer and set aside
- In the same pan, add 1 tablespoon oil and fry the onions until golden brown
- Add the ginger garlic paste and fry for another minute or so until fragrant
- Next, add the coriander powder, garam masala, chilli powder and some salt. Fry for 30 seconds.
- To this, add the tomato sauce or puree, tomato paste, ketchup and kasuri methi. Mix well until all the ingredients combine well
- Add milk to the above
- Lower heat and cook covered for 5 mins.
- Open lid, add the fried paneer/tofu and the cream.
- Mix well and simmer for 3-4 mins in the open pan. Adjust salt if needed.
- Serve hot with any main dish of your choice
Step by Step Pictures to Make Paneer Butter Masala
Heat a pan on low flame and add butter to it. Let it melt.

Add the cubed paneer to this..

and fry lightly until light golden brown.

Drain and set aside

In the same pan, add the oil and sliced onions. Fry until golden brown.

Add the ginger garlic paste to this and fry for another 30 seconds to 1 minute or until fragrant.

Take care not to burn the mixture, keep heat low

Next, it's time to add your spice powders - coriander powder, chilli powder, garam masala, along with salt. Fry for 30-45 seconds.

Now add the tomato paste..

ketchup..

and kasuri methi (dried fenugreek leaves)

Mix everything together and add the milk

Keeping heat low, simmer covered for 5 minutes. Meanwhile, get the cream ready. Use Nestle cream for this recipe usually.

Add the cream to the above along with the fried paneer

Mix everything together gently and simmer for another 3-4 minutes and your paneer butter masala is ready!
Hat tip to the original recipe: vahchef.







Prathibha
My most fav one....looks really like restaurant style...with loadz of cream in it..
Pavithra
All time fav of everyone.. looks gorgeous and creamy...
rekhas kitchen
wow my all time fav. mmmm so tempting looks so creamy and inviting nice step by step pic. nags.
Hb
Delicious, cream is the culprit ha?
Even I have some tofu 😉 Tofu cream masala?
K
This is my all time fav dish. Looks delish!
That first pic killed me! i am here all hungry and waiting for lunch break:)
Nags
Yeah, I used tofu because I had a block of it lying around. To buy Paneer, I usually have to go to Little India and its just too far off. Tofu tasted very similar, though of course the texture is different 🙂
Sonu
Oh..did you already mention here or I didn't read throughly? 😉 no matter what you did use but looks so good. 🙂
Nags
Sonu - it IS tofu 🙂
Sonu
Your paneer looks so firm and chunky. At first sight...I thought you have used firm tofu. Nice step-by-step recipe. I also have this recipe in my draft. 🙂
Sharmilee! :)
PB Masala is my all time fav. Even I've tried many versions but the one I posted in my blog is my keeper.....as it tasted as in restaurants but I didnt add cream/milk. Instead the way onions, tomato,cashew pastes are added is lil different and gives it that restaurant creamy taste. But I made it for dinner and the pic was not soo droolworthy, so waiting to try it again and post a better pic! Urs looks very inviting, need just a roti to empty that bowl 🙂