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  4. Paneer Butter Masala Recipe Restaurant-Style

Paneer Butter Masala Recipe Restaurant-Style

Updated: Feb 6, 2025 · Published: Jan 26, 2023 by nags · This post may contain affiliate links · 380 Comments

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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!

paneer butter masala recipe restaurant-style step by stepPin
paneer butter masala recipe restaurant-style step by stepPin

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.

Table of Contents

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  • What is Paneer Butter Masala
  • Recipe Tips and Notes
  • Paneer Butter Masala Recipe
    • Ingredients  
    • Instructions 
  • Step by Step Pictures to Make Paneer Butter Masala

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 restaurant style step by stepPin

Paneer Butter Masala Recipe

nags
Paneer butter masala restaurant-style recipe, step by step, using fresh paneer and cream with other spices. A perfect, rich, decadent side dish for weekends and special occasions.
4.99 from 60 votes
Print Recipe Pin Recipe
Prep Time 10 minutes mins
Cook Time 30 minutes mins
Total Time 40 minutes mins
Course Paneer
Cuisine Indian
Servings 4

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
Keyword paneer butter masala recipe

Step by Step Pictures to Make Paneer Butter Masala

Heat a pan on low flame and add butter to it. Let it melt.

paneer butter masala recipe restaurant-style step by stepPin

Add the cubed paneer to this..

paneer butter masala recipe restaurant-style step by stepPin

and fry lightly until light golden brown.

paneer butter masala recipe restaurant-style step by stepPin

Drain and set aside

paneer butter masala recipe restaurant-style step by stepPin

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

paneer butter masala recipe restaurant-style step by stepPin

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

paneer butter masala recipe restaurant-style step by stepPin

Take care not to burn the mixture, keep heat low

paneer butter masala recipe restaurant-style step by stepPin

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

paneer butter masala recipe restaurant-style step by stepPin

Now add the tomato paste..

paneer butter masala recipe restaurant-style step by stepPin

ketchup..

paneer butter masala recipe restaurant-style step by stepPin

and kasuri methi (dried fenugreek leaves)

paneer butter masala recipe restaurant-style step by stepPin

Mix everything together and add the milk

paneer butter masala recipe restaurant-style step by stepPin

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

paneer butter masala recipe restaurant-style step by stepPin

Add the cream to the above along with the fried paneer

paneer butter masala recipe restaurant-style step by stepPin

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.

paneer butter masala restaurant style step by stepPin
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Reader Interactions

Comments

  1. debalina

    June 15, 2011 at 5:32 pm

    I tried dis recipe fr d frst time!before i never cooked paneer as i m hardcore non-veg!i tried dis one!bt only mistake i did i could bt chop paneer cube into pieces den i just drenched dem!!so dey gut scattered horribly!!otherwise d taste is just yummy!!thank u cook...:)

    Reply
  2. Anonymous

    June 07, 2011 at 9:39 pm

    Hi Naga,
    This is the first time I came across your blog when I searched for a perfect (which could meet my expectation) Paneer Butter Masala recipe. Wow, I tried it right away (I was planning to make it today and had all the ingredients ready) and it passed with flying colors. It's superb, simply superb, just superb.....
    Hats off to you. Countless of thanks for posting this. Hmm.., the house is filled with nice aroma. Thanks again Naga.
    ~Maha~

    Reply
  3. Nivedita

    May 28, 2011 at 10:31 pm

    Tried out your recipe quite a few times. It always tastes AMAZING!!! The BEST paneer butter masala I've ever had. I always make the paneer myself at home and I swear it makes it taste way better than any store-bought paneer. Thanks for the recipe, I simply love it! 🙂

    Reply
  4. Anonymous

    May 28, 2011 at 8:38 pm

    I just have one question, how is it paneer BUTTER masala when there is no butter in the recipe? otherwise this tastes fantastic, thanks for posting!!

    Reply
  5. Nags

    May 29, 2011 at 1:22 am

    Anonymous - As I have mentioned a few times in the comments already, please FEEL FREE to use butter instead of oil before sauteing the onions. I just CHOSE TO use oil.

    Thanks for leaving a note on the paneer butter masala recipe. Definitely agree that using fresh homemade paneer really enhances the taste of this recipe.

    Reply
  6. Venkat

    May 18, 2011 at 6:19 pm

    My all time fav dish....Nice post. Thanks a lot.

    Reply
  7. Aditya

    May 17, 2011 at 11:40 am

    this recipe rocks1!i gave this recipe to my mom and she made it.to be honest this was the best ever home dish prepared by her and i relished every bit.thank u for it.

    Reply
  8. Nags

    May 17, 2011 at 11:42 am

    thank you so much for the lovely comments on the paneer butter masala recipe, aditya. really glad you liked it 🙂

    Reply
  9. Urs....Jina

    May 11, 2011 at 9:14 pm

    Thank u soooooo much. I never knew paneer butter masala is so easy to make. Just did it and its yummmmm..:)

    Reply
  10. Nags

    May 12, 2011 at 12:54 am

    So gald you liked the restaurant style paneer butter masala recipe. there's a more homely version of paneer butter masala recipe on this site too, in case you are interested 🙂

    Reply
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