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How to Make Restaurant-Style Paneer Butter Masala at Home

Lakshman Rao Sarnala
A creamy and rich North Indian curry made with paneer (Indian cottage cheese), tomatoes, butter, and aromatic spices.
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Prep Time 15 minutes
Cook Time 25 minutes
10 minutes
Total Time 50 minutes
Course Main Course, paneer
Cuisine Indian
Servings 2

Ingredients
  

  • 250 grams paneer (cubed)
  • 3 medium tomatoes (roughly chopped)
  • 1 large onion (optional, roughly chopped)
  • 2 tbsp butter
  • 1 tbsp oil
  • 1 tsp ginger-garlic paste
  • 1/2 cup fresh cream
  • 1/2 tsp red chili powder
  • 1 tsp Kashmiri chili powder (for color)
  • 1/2 tsp turmeric powder
  • 1 tsp garam masala
  • Salt to taste
  • 1 tsp sugar (optional, balances flavors)
  • 8-10 cashew nuts
  • 1 cup water (adjust consistency)
  • Fresh coriander for garnish

Instructions
 

Cook the Tomato Base:

  • Heat 1 tsp oil in a pan. Add tomatoes, cashews, and onion (if using). Sauté until soft.
    Cool slightly and blend into a smooth paste.

Prepare the Gravy:

  • In the same pan, heat butter and 1 tsp oil. Add ginger-garlic paste and sauté until aromatic.
    Add the tomato-cashew paste. Cook for 7–10 minutes on medium heat until oil separates.

Add Spices and Cream:

  • Add chili powder, turmeric, garam masala, salt, and sugar. Mix well.
    Pour in the cream and stir. Add water to adjust the consistency.

Add Paneer:

  • Add paneer cubes and gently mix. Simmer for 5–7 minutes.

Garnish and Serve:

  • Garnish with fresh coriander leaves and a swirl of cream.
    Serve hot with naan, roti, or rice.

Notes

For added texture, you can lightly fry the paneer cubes before adding them to the gravy.
To make it vegan, substitute tofu and coconut cream for the paneer and dairy cream.
Adjust the sweetness according to your preference—some like it sweeter, while others prefer less.
Keyword Indian paneer curry, paneer butter masala recipe, restaurant style paneer butter masala