Paneer butter masala is what Punjabi restaurants offered vegetarian guests when butter chicken became the dish everyone ordered. It borrows the same makhani gravy, swapping chicken for fresh paneer, and over the decades it has become the default party dish of vegetarian homes across North India. Many home cooks keep a batch of the gravy in the freezer for quick dinners.
The gravy is smooth, orange-red and gently sweet, made from tomatoes and cashews cooked down with whole spices and blended fine. Butter gives it richness, Kashmiri chilli adds colour more than heat, and kasuri methi brings the slightly bitter, savoury aroma that marks it as Punjabi. The paneer should be soft and milky, never rubbery.
It is served at birthday dinners, kitty parties and wedding buffets, usually with naan or laccha paratha. Children who find other curries too spicy tend to love it, so it is also a family weeknight favourite. It also reheats well, so it is a sensible choice when cooking ahead for a crowd. A plain cucumber raita and a bowl of sliced onions are all the sides it needs.
At a glance
| Region | Punjab |
|---|---|
| Cuisine | Punjabi |
| Diet | Vegetarian |
| Course | Main course |
| Prep time | 15 minutes |
| Cook time | 30 minutes |
| Total time | 45 minutes |
| Serves | 4 |
| Spice level | Mild |
| Difficulty | Easy |
| Gluten-free | Yes |
| Key ingredients | paneer / tomato / cashew / butter / cream |
Ingredients
- 300 g fresh paneer, cut into 2.5 cm cubes
- 3 tbsp butter
- 1 tbsp oil
- 1 bay leaf, 2 green cardamom, 3 cloves
- 1 medium onion, roughly chopped
- 1 tbsp ginger-garlic paste
- 4 large ripe tomatoes, chopped
- 12 cashews
- 1 1/2 tsp Kashmiri red chilli powder
- 1 tsp coriander powder
- 1/2 tsp garam masala
- 1 tsp sugar
- 1 tsp kasuri methi
- 3 tbsp fresh cream
- Salt to taste
Method
- Soak the paneer cubes in hot salted water for 10 minutes while you make the gravy – this keeps them soft.
- Heat 1 tbsp butter and the oil in a pan on medium. Add onion and cook 3 to 4 minutes until translucent, not brown.
- Add ginger-garlic paste and saute 1 minute. Add tomatoes, cashews and a pinch of salt. Cover and cook 10 minutes on medium-low until the tomatoes are mushy.
- Cool for a few minutes and blend to a very smooth paste with 1/4 cup water.
- In the same pan, heat the remaining 2 tbsp butter on medium. Add bay leaf, cardamom and cloves, then pour in the puree carefully, as it splutters.
- Add chilli powder, coriander powder and salt. Simmer on low 8 to 10 minutes, stirring, until the gravy thickens and butter shines on top. Add up to 1/2 cup hot water for a pouring consistency.
- Stir in sugar, garam masala and crushed kasuri methi. Drain the paneer and fold it into the gravy. Simmer 2 minutes only.
- Switch off the heat, stir in the cream and serve with a little more cream drizzled over.
Tips
- Overcooking paneer in the gravy makes it chewy – add it at the very end.
- Use a mix of ripe and slightly sour tomatoes for balance, and adjust sugar to taste.
- Malai or homemade paneer gives the softest result.
Serve with
Butter naan, laccha paratha or jeera rice.