Paneer Butter Masala | Paneer Makhni Restaurant Style
Prep time
Cook time
Total time
Recipe type: Main
Cuisine: Indian
Serves: 4 servings
  • Paneer/cottage cheese – 200 gms
  • Unsalted/cooking butter – 3 tbsp (about 50 gms)
  • Cinnamon stick – 2-inch piece
  • Green chili – 2 to 3, cut into half
  • Ginger paste – 1 tbsp
  • Garlic paste – 1 tbsp
  • Red tomatoes – 4, each cut into 8 to 10 pieces
  • Kashmiri red chili powder – 1 tsp
  • Coriander powder – 1 & ½ tsp
  • Freshly chopped coriander leaves – 1 cup
  • Raw cashew nuts – 15 to 20
  • Fresh cooking cream / heavy whipping cream / malai – 100 gms (about ½ cup)
  • Kasoori methi / dry fenugreek leaves – ½ tsp
  • Sugar – ½ tsp
  • Salt to taste
  1. Cut the paneer block into 1-inch cubes. Bring a pot of salted water to boil and drop the paneer cubes to it. Let the paneer boil for couple of minutes, then switch off the flame and let the paneer sit in the hot water until further use.
  2. Soak the cashews in room temperature water for about an hour. Then transfer them to a grinder and grind to make a smooth paste without minimal water. Set it aside.
  3. Heat a kadhai and add ⅔ of the butter to it. Once the butter melts, add cinnamon sticks and green chilies. Sauté them or few seconds.
  4. Next add ginger paste and garlic paste and sauté them on medium flame for couple of minutes until the raw smell is gone.
  5. Then drop in the chopped tomatoes and cook them on medium until they become soft and mushy. Season it with the sugar and about ¼ teaspoon of salt.
  6. Once the tomatoes are disintegrated, switch off the flame and let the mixture cool down. Then transfer it to a grinder and grind to a smooth lump-free puree. Set it aside.
  7. Heat the same kadhai and add remaining butter to it. Once the butter melts, add red chili powder and coriander powder and sauté them on low heat for a minute.
  8. Then add half of the fresh coriander leaves and mix well. Now add the prepared tomato puree and stir it well. Let it come to a boil on medium heat.
  9. Once the tomato mixture comes to a boil, reduce the heat and add the cashew paste to it. Give a thorough mix. Add about ¾ to 1 cup of water depending on how much gravy you want. Bring it to boil.
  10. Once the gravy starts to boil, take out the paneer cubes from hot water using a slotted spoon so that the water drains out and tip them into the gravy. Stir them in with a light hand making sure the paneer does not break.
  11. Next add the cream keeping the flame on lowest setting. Mix well and as soon as the gravy starts to simmer, switch off the flame.
  12. Finally add the crushed kasoori methi and the remaining fresh coriander leaves. Mix well. Check and adjust the seasoning if needed.
  13. Rich and creamy paneer butter masala is ready to serve with naan or rice. Enjoy!
Recipe by Everyday Indian Recipes at