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.







Nags
Thank you so much for your very kind words Neha. Did you try the restaurant style paneer butter masala recipe?
Cmac
I just made this recipe and it was great, I used real Paneer and yogurt instead of cream but it was still as described in your post. I would definitely make this again.
Here is my version http://www.cmacskitchen.com/2010/08/paneer-butter-masala-with-a-side-of-cmacs-indian-style-cabbage/
Nags
There are so many different reasons why this could have happened, in addition to the reasons you mentioned. My recipes tend to be a bit heavy on coriander since we love the flavour.
Its almost impossible to exactly replicate someone else's dish even if you have their accurate recipe in hand. I'd love to talk more though, do email me 🙂
niru
I tried your recipe since it was looking just like it was served in the restaurants. I should say it tasted awesome, better than restaurant. I was trying to find out how the restaurant ppl do their panner butter masala so creamy and tasty, now I know it. Thanks a lot for the wonderful recipe. Keep posting such wonderful recipes...
Anonymous
Thanks a lot!!! It came out great!!!
Maynardud2
Okay, so it was very good, however, it wasn't like the restaurants in my area. There are about 12 Indian restaurants. Of the two I go to, one just got back from spending a week in India learning new Indian recipes. He wont' share even if I pay him to just watch him. the other is a family and they aren't interested in sharing.
Couple of reasons why It might not be the same.
the Garam Masala I used was homemade. Forget where I got it but I had to roast dry cumin and coriander, and plenty of other stuff. I am a teacher I I got a recipe from at parent and she insisted on using Badshah masala. I haven't tried her recipee for Panner Mutter yet.
The other issue could have been it may have been better had I mad the onions into a paste. You rarely have whole onions.
the final issue could have been lack of some key indrediants. I notice you other version of Paaner Masala as added ingredients like bay leaf (maybe not in yours, I forget) but had way less coriander, had mustard seed and cashew nuts.
I also noticed you used fenugreek powder rather than the dryed plant. Isn't the powder made up of the seed? I hope I haven't asked to many questions. Maybe you would prefer me email you this stuff in the future. Let me know you thoughts. I am determined to figure this out.
Anonymous
okay, after my obsession with Chicken Tiki Masala I have been scared to try any more indian recipess, because after months of failures, all sucked. I am going to try this tomorrow. I will let you know how it goes.
Nags
This paneer butter masala recipe is a no-fail. hope it works out for you 🙂
Anonymous
hello,
i tried it and it really tasted ver well. yes kind of restaurant type and thats what i was looking for... many thanks
Nags
Thank you so much for trying (and liking) my restaurant style paneer butter masala 🙂