If you love creamy, rich, and flavor-packed dishes, you’re in for a treat with this Paneer Butter Masala Recipe! This iconic Indian curry, also known as butter paneer or paneer makhani, is a restaurant favorite that you can easily recreate in your kitchen.

When you think of creamy, comforting Indian curries, Paneer Butter Masala, or butter paneer as it’s lovingly called, is likely at the top of the list. This rich and flavorful dish is a vegetarian favorite, featuring paneer cubes simmered in a buttery, tomato-based gravy.
What Is Paneer Butter Masala?
Paneer Butter Masala is a mild, velvety curry that perfectly balances the richness of butter and cream with the tanginess of tomatoes and the cozy warmth of Indian spices. It’s the vegetarian version of the famous butter chicken. Compared to its spicier cousin, Paneer Tikka Masala, this dish is much creamier and gentler on the palate, making it an irresistible comfort food.
This dish pairs beautifully with Indian flatbread (naan, paratha, chapati, or roti) basmati rice or a bowl of fragrant biryani rice, making it perfect for family dinners or special occasions.

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Why You’ll Love This Recipe
The traditional recipe for Paneer Butter Masala includes cashew nuts and dried fenugreek leaves (Kasuri Methi). My version skips these two ingredients, but still delivers a flavor remarkably close to the authentic butter curry. Having tasted plenty of Indian food across the globe, I can confidently say this recipe captures the essence of the real deal. 😉 If you have fenugreek leaves at home, please add a small amount to the finished dish.
Ingredients
See recipe card for quantities.

- Paneer: The star of the dish! Paneer is a firm, non-melting Indian cheese that soaks up the curry’s flavors. You can substitute tofu or cauliflower for a vegan option. If paneer is not available, Halloumi cheese might be a good alternative.
- Tomato Passata: Also called tomato puree in the US. They form the base of the creamy curry.
- Butter: Adds richness and that unmistakable buttery flavor. Swap with vegan butter for a dairy-free version.
- Half-and-Half & Milk: Creates a silky texture. By using a combination of both you can save some real calories. For the real deal, use heavy cream. For a vegan twist, coconut cream is an excellent alternative.
- Onion, Ginger, and Garlic: The aromatic trio that gives the curry its depth of flavor.
- Spices: A mix of garam masala, ground cumin, turmeric powder, coriander powder, and cayenne pepper (or red chili powder) balances the flavors perfectly. Feel free to adjust the heat with more or less cayenne pepper.
- Sugar: Just a touch to balance the tanginess of the tomatoes.
Visual Step-by-Step Instructions
A simple overview on how to make paneer butter masala!
- Butter Masala: Heat a pan with 1 tablespoon of butter. Add the onions and sauté over medium heat for 5 minutes. Add garlic and ginger, sauté for another minute. Add the spices, and sauté for another 30 seconds.
- Add tomato passata, sugar, and salt, then let it simmer on low heat for 10 minutes.
- Add the sauce along with half-and-half and milk to a blender or the jar that came with your immersion blender, then blend into a smooth, creamy sauce.
- Paneer: In the meantime, cut the paneer into large cubes. Heat a large frying pan with 1 tablespoon of butter or ghee. Add the paneer, fry on each side until golden brown.
- Stir in the sauce and let it warm up again.
- Serve your paneer butter curry in a bowl and garnish with cilantro and a few splashed of cream if desired. It pairs well with biryani rice, basmati rice, or warm naan bread.

Tips for Success
- Use Fresh Paneer: Homemade or high-quality store-bought paneer makes all the difference. Nagi from RecipeTin Eats has an excellent recipe for homemade paneer.
- Prepare Ahead: The curry can be made up to 2 days in advance. For the best texture, fry and add the paneer fresh when reheating if possible, but it’s still wonderful if stored together.
- Store Properly: Store leftovers in an airtight container for up to 3 days. Reheat in a pan or microwave with a splash of water until warmed through.
More Indian Recipes To Try

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📖 Recipe
Indian Paneer Butter Masala
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Ingredients
Paneer
- 1 tablespoon butter
- 14 oz paneer
Butter Masala
- 1 tablespoon butter
- 1 yellow onion, sliced
- 2 cloves garlic, minced
- 1 inch piece ginger, minced
- 2 teaspoon garam masala, see notes
- 1 teaspoon ground cumin
- 1 teaspoon ground coriander
- ½ teaspoon ground turmeric
- ¼ teaspoon cayenne pepper, or red chili powder
- 1 teaspoon sugar
- ¼ teaspoon salt
- 14 oz tomato passata, (tomato puree)
- ¼ cup milk
- ½ cup half-and-half, or heavy cream
Instructions
- Butter Masala: Heat a pan with 1 tablespoon of butter. Add the onions and sauté over medium heat for 5 minutes. Add garlic and ginger, sauté for another minute. Add the spices, and sauté for another 30 seconds.
- Add tomato passata, sugar, and salt, then let it simmer on low heat for 10 minutes.
- Add the sauce along with half-and-half and milk to a blender or the jar that came with your immersion blender, then blend into a smooth, creamy sauce.
- Paneer: In the meantime, cut the paneer into large cubes. Heat a large frying pan with 1 tablespoon of butter. Add the paneer, fry on each side until golden brown.
- Stir in the sauce and let it warm up again.
- Serve your paneer butter curry in a bowl and garnish with cilantro and a few splashes of cream if desired. It pairs well with biryani rice, basmati rice, or warm naan bread.
Notes
- Store leftovers in an airtight container for up to 3 days. Reheat in a pan or microwave with a splash of water until warmed through.
- Homemade Garam Masala Spice Mix: 1 tablespoon ground cumin, 1 ½ teaspoon ground coriander, 1 ½ teaspoon ground cardamom, 1 ½ teaspoon black pepper, 1 teaspoon ground cinnamon, ½ teaspoon clove powder, ½ teaspoon ground nutmeg.
- Made with half-and-half instead of heavy cream and less butter, this recipe is a slightly lighter version of the traditional Paneer Butter Masala, without compromising on flavor! Feel free to use heavy-cream for the real deal!
- I recommend serving it with ¼ – ½ cup (50-80g) of rice per person.
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