This Paneer Butter Masala recipe brings tender cubes of paneer and a rich, velvety tomato sauce together for a comforting Indian favorite!

Paneer Butter Masala is a comforting Indian dish featuring tender cubes of paneer in a rich, creamy tomato sauce. Butter and warm spices give the gravy a savory depth, while the paneer’s mild flavor makes it the perfect match for every delicious spoonful. Serve it with fluffy basmati Rice or warm Indian Naan Bread to soak up all that luscious sauce for a satisfying vegetarian meal.
I love all the flavors in a masala spiced recipe. For more masala recipes you have to check out my Garam Masala Chicken Curry, and Chickpea Tikka Masala (Vegan).
Table of Contents
Why You’ll Love This Paneer Butter Masala
- Rich, creamy tomato gravy – Fresh tomatoes, cashews, butter, and heavy cream come together to create a smooth, velvety sauce with a delicious balance of savory richness and gentle sweetness.
- Warm, aromatic Indian spices – Garam masala, coriander, cardamom, cinnamon, and cloves give the sauce layers of flavor, while dried fenugreek leaves add a distinctive, slightly earthy aroma.
- Tender cubes of paneer – Mild Indian cheese is gently simmered in the flavorful gravy, soaking up the sauce while maintaining its soft texture and making this a satisfying vegetarian main dish.
- Smooth, restaurant-style sauce – Blending the cooked tomato and cashew mixture, then passing it through a strainer, creates a silky gravy without tomato skins or pieces of onion.
Recipe Ingredients

Paneer: A mild, fresh Indian cheese that holds its shape when heated. Its soft, slightly firm texture makes it perfect for soaking up the rich, flavorful gravy without melting.
Cashews: Help thicken the tomato-based sauce and give it a smooth, creamy consistency. Use plain, unsalted cashews for the best flavor.
Garam Masala: A fragrant Indian spice blend that typically includes warming spices such as cumin, coriander, cardamom, cinnamon, and cloves. It adds depth and complexity to the gravy.
Dried Fenugreek Leaves: Also known as kasuri methi, these leaves add a slightly earthy flavor that complements the buttery tomato sauce and other spices.
For a full list of ingredients and amounts see the recipe card below.
How to Make Paneer Butter Masala
Step #1: In a large pan over medium high heat add the oil.
Step #2: Next, add the garlic, ginger, cardamom, and onions. Cook for 4-5 minutes until onions have softened. Reduce the heat if needed to prevent the garlic from burning.

Step #3: Add the tomatoes, salt and cashews. Cook for 5-7 minutes or until tomatoes break down and turn mushy.

Step #4: Add in the paprika, coriander, and garam masala and stir for another 2 minutes until fragrant. Then turn off the heat and set aside to cool.

Step #5: Pour 1 cup of the water into a blender or food processor along with the tomato mixture and blend until smooth.

Step #6: In the same pan add the butter, bay leaf, cinnamon stick, and cloves and cook for 1 minute until butter has melted.

Step #7: Then using a large strainer, strain the tomato mixture into the pan.

Step #8: Pour in the other ½ cup of water into the pan. Cover your pan and cook on medium-high heat for 10-12 minutes stirring occasionally.

Step #9: Remove the bay leaf, cinnamon stick and cloves.
Step #10: Next, stir in the sugar, fenugreek leaves, and paneer. Cook covered for a few minutes on low heat then stir in the cream and turn off the heat.

Step #11: Garnish with an additional Tablespoon of cream, if desired, and freshly chopped cilantro if desired and enjoy!

Expert Tips
- Choose ripe tomatoes and unsalted cashews – Ripe, flavorful tomatoes give the gravy a naturally sweet and tangy base, while plain, unsalted cashews help create a creamy texture without overpowering the spices. Avoid heavily roasted or seasoned cashews, which can change the flavor.
- Blend and strain for a silky sauce – Allow the cooked tomato mixture to cool before blending, following your blender’s instructions for warm ingredients. Blend until completely smooth, then press the mixture through a fine-mesh strainer to remove tomato skins and any remaining pieces of cashew or onion.
- Let the gravy simmer gently – Stir the sauce occasionally as it cooks to prevent sticking or scorching. It should thicken slightly while remaining smooth and pourable. If it becomes too thick, add a small splash of water to reach your desired consistency.
- Crush the dried fenugreek leaves – Gently crush the dried fenugreek leaves, also known as kasuri methi, between your palms before adding them. This helps release their distinctive aroma and brings out the warm, savory flavors of the finished sauce.
- Keep the paneer soft. Avoid cooking the paneer for too long after adding it to the gravy, as it can become firm or rubbery. Simmer just until heated through. If your store-bought paneer is especially firm, soaking the cubes in warm water for 10 minutes before adding them can help soften the texture.
- Adjust the flavors before serving. Tomatoes can vary in acidity and sweetness. Taste the finished gravy and add a small pinch of sugar if it tastes too tangy, or a little more salt if needed. For more heat, stir in a pinch of cayenne pepper or Indian red chili powder.
FAQs
Yes, canned tomatoes are a convenient alternative when fresh tomatoes aren’t available. Use approximately 2 cups of plain canned whole or diced tomatoes in place of the fresh tomatoes. Canned tomatoes can vary in acidity and moisture, so you may need to adjust the water or sugar slightly to achieve the desired flavor and consistency.
Dried fenugreek leaves, also called kasuri methi, are commonly used in Indian cooking to add a distinctive, slightly earthy and aromatic flavor. They contribute to the characteristic taste of Paneer Butter Masala. You can omit them if necessary, but the finished sauce will have a slightly different flavor. Fenugreek seeds are much stronger and should not be used as a direct substitute.
Paneer Butter Masala is generally a mild curry, and this recipe uses paprika rather than hot chili powder. The garam masala, cardamom, cinnamon, and cloves provide warm flavor without a lot of heat. If you prefer a spicier dish, you can add a small amount of cayenne pepper or Indian red chili powder to taste.

Storage Information
You can store any leftovers of this restaurant style paneer butter masala in an airtight container in your fridge for 3-4 days. For longer storage you can freeze this recipe in your freezer for up to 3 months.
To reheat, thaw overnight in the fridge and then you can reheat on the stovetop with a splash of cream or in the microwave until everything has warmed through.
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Paneer Butter Masala
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Ingredients
- 1 Tbsp extra virgin olive oil
- ¼ tsp ground cardamom
- 1 cup yellow onion - diced
- 1 inch fresh ginger - peeled and sliced
- 6 cloves garlic - minced
- 2 cups tomatoes - quartered
- 16 whole cashews - raw and unsalted
- 1 tsp salt
- 1 tsp granulated sugar
- ¾ tsp paprika
- ¾ tsp garam masala
- 1 tsp coriander powder
- 1 1/2 cups water - divided
- 2 Tbsp butter
- 1 bay leaf
- 1 cinnamon stick
- 3 whole cloves
- 10 oz paneer - cut into bite sized pieces
- ½ Tbsp dried fenugreek leaves
- 3 Tbsp heavy cream
- 1 Tbsp fresh cilantro - for garnish
Instructions
- In a large pan over medium high heat add the oil.
- Next, add the garlic, ginger, cardamom, and onions. Cook for 4-5 minutes until onions have softened. Reduce the heat if needed to prevent the garlic from burning.
- Add the tomatoes, salt and cashews. Cook for 5-7 minutes or until tomatoes break down and turn mushy.
- Add in the paprika, coriander, and garam masala and stir for another 2 minutes until fragrant. Then turn off the heat and set aside to cool.
- Pour 1 cup of the water into a blender or food processor along with the tomato mixture and blend until smooth.
- In the same pan add the butter, bay leaf, cinnamon stick, and cloves and cook for 1 minute until butter has melted.
- Then using a large strainer, strain the tomato mixture into the pan.
- Pour in the other ½ cup of water into the pan. Cover your pan and cook on medium-high heat for 10-12 minutes stirring occasionally.
- Remove the bay leaf, cinnamon stick and cloves.
- Next, stir in the sugar, fenugreek leaves, and paneer. Cook covered for a few minutes on low heat then stir in the cream and turn off the heat.
- Garnish with an additional Tablespoon of cream, if desired, and freshly chopped cilantro if desired and enjoy!
NOTES
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