Wait till you taste this Paneer Butter Masala recipe, which has soft pieces of paneer, smothered in a creamy, flavourful gravy! This Paneer Butter Masala is a perfect comfort food recipe that is best enjoyed with garlic naans.
Ingredients
For Tomato Sauce
- 5 tbsp Oil
- 2 Green Cardamons (Elaichi)
- ½ (1 cup) Large Red Onion, cubed
- 12-14 Cashew Nuts
- 3 (1 ½ cup) Medium Tomatoes, cubed
Roasting the Spices and Aromatics
- 3 tbsp Butter
- 1 small Bay Leave (Tej Patta)
- 4 Cloves (Laung)
- 3 Green Cardamoms
- 1-inch Cinnamon Stick (Dalchini)
- 2 tsp Ginger Paste
- 3 tsp Garlic Paste
Adding the Paneer
- 375 grams Paneer, cubed
- ½ tbsp Kashmiri Chili Powder
- ½ tbsp Coriander Powder
- ½ tsp Tumeric Powder
- 1 tsp Cumin Powder
- 1 tsp Garam Masala
- 2 Green Chilies, slit
- 1½ tsp Sugar, to taste
- 1 tsp Salt, to taste
- 1 ½ cups Water
- 1 tsp Dried Fenugreek Leaves (Kasuri Methi)
- 4–6 tbsp Heavy Cream, whipping cream or cooking cream
- 2 tbsp Fresh Coriander, finely chopped

Method
- To a heated deep pan, add the oil, and once the oil has heated toss in the green cardamons and chopped red onions. With the heat on medium, sauté the onions till they turn translucent.
- Add the cashew nuts and continue satuéing for about 30 seconds.
- Add the tomatoes and continue sautéing till the tomatoes turn soft. Transfer the sautéed onions and tomatoes into a bowl to cool.
- In the same pan, add the butter, and once the butter has melted add the bay leaf, cloves, green cardamons, and cinnamon stick and sauté till the whole spices infuse the butter with their flavour.
- Now add the ginger paste and garlic paste to the pan and continue sautéing till they lose their raw flavour. Take the pan off the heat and keep it aside.
- Blend the onion and tomatoes with the cashew nuts in a blender until you have a smooth sauce. Keep it aside as well.
- Cut the paneer into ½” square cubes and keep it ready for putting into the gravy.
- Now put the pan back on the heat and pour in the sauce, then add the Kashmiri chili powder, coriander powder, turmeric powder, cumin powder, garam masala, slit green chilies, sugar, and salt and give it all a mix till it gets well blended together.
- Add the water and give it another mix. Cover the pan with a lid and allow it to cook for about 10 minutes so that the flavours get a chance to mingle together.
- Add the crushed dried fenugreek leaves and about 4 tablespoons of heavy cream. Give it a quick mix.
- It is time to gently add the cubed paneer pieces and give it a swirl to coat the paneer with the gravy. It is best not to use a spoon to avoid breaking the paneer.
- Cover and cook for another 5-10 minutes to give the paneer a chance to absorb all the delicious flavour of the gravy. Make sure to swirl the pan a couple of times between the cooking time.
- Once the oil comes to the top, take it off the heat and plate it. Garnish with a drizzle of cream and finely chopped fresh coriander.