Restaurant Style Paneer Butter Masala is a popular recipe where Paneer cubes are simmered in a mildly rich onion tomato cashew nut based gravy
Ingredients
For Onion Tomato Puree:
- 1 large onion diced
- 3 medium tomatoes diced
- 3 cloves garlic
- 1 inch ginger
- ¼ cup cashewuts (about 12-15) OR almonds
- 1 inch cinnamon stick
- 3 cloves
- 2 green cardamoms
- 1 cup water
For Paneer Butter Masala:
- 2-3 tablespoons butter or oil
- ½ teaspoon cumin (jeera) seeds
- 1-2 bayleaf
- 2 teaspoon kashmiri red chili powder (i used everest kashmiri lal brand)
- 200 grams paneer (cottage cheese) cut into 1-inch cubes
- 1.5 tablespoons dried fenugreek leaves (kasoori methi)
- 1 teaspoon garam masala powder or use kitchen king masala
- 2-3 tablespoons fresh cream (full fat)
- ½-1 teaspoon sugar or honey optional
- salt as per taste
- 2 tablespoons cilantro/coriander leaves for garnish
Instructions
Stovetop Method:
- Put the onions, tomatoes, cashew nuts, ginger, garlic, whole spices, and 1 cup of water into a pan and bring to a boil.
- Cook on a medium flame for at least 15-20 minutes. Remove from the heat and cool. Blend to a smooth puree/paste using a high-speed blender.
- In a pan, heat the butter, add the jeera seeds, and saute for 30 seconds.
- Add Kashmiri red chili powder, bay leaf, give a quick stir.
- Then add onion-tomato cashew puree. Close lid and cook on medium heat for 2-3 minutes.
- Add the paneer, kasoori methi, garam masala, or kitchen king masala, salt. Mix well and bring the mixture to a boil.
- Finally, gently stir in the cream, and paneer butter masala is ready to serve.
- Serve Paneer makhani recipe hot with chapati, naan, rice, and onion slices.
Instant Pot Method:
- Firstly, add 1 cup of water into the Instant pot insert. Place the trivet.
- Put the onions, tomatoes, cashew nuts, ginger, garlic, whole spices, and 1 cup of water into a deep pan. Place the pan over the trivet.
- Close the Instant Pot with pressure valve to Sealing. Cook on High Pressure for 8 minutes.
- Once the pot beeps, let the pressure release naturally.
- Puree cooked onion-tomato mixture using a hand blender until smooth. If you don’t have a hand blender, puree in a blender in batches once slightly cooled.
- Then I usually sieve the onion-tomato puree for silky texture and discard the residue, but it’s optional.
- Press SAUTE on Instant Pot. Add butter/oil to the POT. Once hot, add cumin seeds and saute for 30 seconds.
- Add Kashmiri red chili powder, bay leaf, give a quick stir.
- Then add onion-tomato-cashew pureed mixture. Mix well and cook for 2-3 minutes.
- Add the paneer, kasoori methi, garam masala, salt. Mix well and bring the mixture to a boil.
- Lastly, gently stir in the cream, and paneer butter masala is ready to serve.

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