Paneer Butter Masala | Butter Paneer Gravy Recipe

Paneer butter masala is one of the tastiest dishes in Indian cuisine. It turns out that butter paneer masala is not a spicy dish, but with a rich taste, so young children love it very much. There will be a lot of spices, but do not be alarmed, they all give an unforgettable taste and aroma, and only one will give spiciness - chili

Preparation Time: 10 minutes

Cooking Time: 30 minutes

Serves: 3 servings

Paneer Butter Masala | Butter Paneer Gravy Recipe


  • 250 gms Paneer (or Tofu), cut into 1-inch cubes
  • 2 medium Onions, finely chopped
  • 1½ teaspoons chopped Ginger
  • 3-4 Garlic Cloves
  • 3 medium Tomatoes
  • 6-8 Cashew Nuts, soaked in water for 15 minutes
  • 1 small piece of Bay Leaf
  • 2 Green Chillies, slit lengthwise
  • 1/2 cup Full Fat Milk
  • 2 teaspoons Kasuri Methi (dry fenugreek leaves)
  • 1/2 teaspoon Garam Masala Powder
  • 1 tablespoon Coriander Powder
  • 1 teaspoon or to taste Red Chili Powder
  • 2 tablespoons Fresh Cream (or homemade malai)
  • 2 tablespoons Butter
  • 2 tablespoons Oil
  • Salt to taste


  1. If you are using frozen paneer cubes, then defrost them.
  2. Grind - onion, ginger and garlic in a grinder and make onion paste.     Grind soaked cashew nuts with 2 tablespoons water to make cashew nut paste. Blanch the tomatoes and blend them to prepare tomato puree.
  3. Heat cooking oil and butter in a non-stick frying pan over medium flame. Add onion paste and bay leaf and saute until onion paste turns light brown for approx. 4-5 minutes.
  4. Add green chili and red chili powder and saute for 30-40 seconds. Add cashew nut paste
  5. Stir and cook for 2-minutes.
  6. Add tomato puree and cook until oil starts to separate from the puree, it will take around 3-4 minutes.
  7. Add coriander powder and garam masala powder and mix well.
  8. Add 1/2 cup milk, 1/2 cup water and salt; mix and cook until oil comes on the surface or for approx. 4-5 minutes.
  9. Add paneer cubes, mint leaves and cook for approx 2-minutes or until you get the desired consistency of gravy.
  10. Add fresh cream (fatty milk)
  11. Mix properly and turn off the flame
  12. Transfer prepared curry to a serving bowl

Cooking Tips and Variations:

  • Add 1/2 cup water in step-8 and cook for 3-4 minutes if gravy is too thick.
  • You can also use chopped onion instead of using crushed onion for variation.
  • You can also add shallow fried paneer cubes. Spread good quality paper napkin or kitchen paper on plate and put shallow fried paneer cubes on it to soak and remove excess oil from it to make relatively healthy low oil curry.
  • If you like creamier gravy, then add more milk cream in step-10. Alternatively, if you do not like creamy taste, then you can altogether avoid using cream

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