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Paneer Butter Masala Recipe (Restaurant Style) Step by Step

Restaurant Style Paneer Butter Masala is so easy to make at home, creamy rich paneer butter masala is my kind of indulgence! or you could say restaurant kind of indulgence!
Paneer butter masala is the most sought after dish after butter chicken and is loved by vegetarians and non vegetarians alike and it is such a wonder that I waited this long to post this dish, which I am sure is loved by you.

During Lent, Homey and I abstain from meat and this buttery dish tops the list. Let me warn you, that this is total indulgence, made with butter and cream, so stop right here if you are on a diet :) My thinking is like this, when you go to a restaurant, you order a dish you love and 90% of the time, you dont think about the cream, butter or other fats in the dish (addition of a heavy dose of cream/malai in gravies are the secret to those luscious thick and tasty gravies) ...and when we try to replicate at home, we tend to avoid cream, butter, ghee etc....and the dish just turn out to be very plain and not very restaurant style!! why not create a restaurant style dish in all its glory at home!! and enjoy with family!! that is my idea of paneer butter masala!

I do not normally use any coloring agents for my cooking, this buttery dish got its color from the rich Kashmiri chilly powder I used and the deep red tomatoes (which is known as ball tomatoes around here (it is not sour like ordinary ones). The curry had a deep red color till cream is added and after that it becomes a bit lighter but still a very nice orange red color.. I'd say the only difference from this dish and the one you have at a restaurant is that they use red color, ajinomoto, and some essence for flavoring.....and this is where Kashmiri chilly and deep- red -not -so -sour -tomatoes play their part.

I should also a mention, that good quality kasuri methi plays an important role for this please stock them up.

Psst! I had so much difficulty in photographing the final picture, so please excuse me .....

Author: Nisa Homey.
Cooking time: 20-30 min
Serves: 4

Paneer: 250 gm. (I used store-bought)
Onion: 2.
Tomatoes: 4 (select deep red ones)
Ginger: 1 inch.
Garlic: 6-7 garlic cloves.
Green chilli: 2.
Kashmiri Chilly Powder: 1 1/2 to 2 tsp (I used 2 tsp)
Turmeric powder: 1/4 tsp.
Garam Masala Powder: 1 tsp.
Kasuri Methi: 1 tsp.
Coriander leaves: 1 tbsp chopped, to garnish.
Butter: 3 tbsp.
Bay Leaf: 1
Oil: 1 tbsp.
Cream: 1/4 cup.
Cashew-nuts: 2 tbsp.
Sugar: 1 tsp.
Salt: 1 1/2 tsp or as needed.
Water: 1 -1 1/2 cups.

To Season Paneer:
Butter: 1 tsp.
Kasuri Methi: One fat pinch.
Kashmiri Chilly Powder: 1/4 tsp.
Turmeric powder: A fat pinch.

First soak cashew-nuts.....and grind it to a paste with little water....and keep aside.

Grind the tomatoes in a blender and keep will be about 1 1/2 cups tomato puree.

Onion, ginger and garlic.....either chop them finely or mince them in a food processor.

Heat butter (I used homemade butter) along with 1 tbsp oil.....the addition of oil helps the butter from getting browned. Add in one bay leaf (tej patta)

Add in the minced or chopped onion mix.....allow it to saute a minute or two on medium flame....then add in salt.

Now, put the fire on low, allow the onions to brown.....add in 1/4 tsp of turmeric, 1 1/2 -2 tsp Kashmiri chilly powder....

1 tsp garam masala powder......and mix well for a that the raw flavor diminishes....remember the fire is on low.

Add in tomato puree.....and mix.

Put the fire on high and once the tomato puree starts to bubble....simmer the fire and give it a stir on and off.....until oil starts coming out.
While it is simmering, heat another pan, preferably nonstick pan with 1 tsp butter, simmer the fire and add in 1/4 tsp Kashmiri chilly powder and a fat pinch of turmeric

Add in the cubed paneer...into it......and toss it....sprinkle a fat pinch of kasuri methi...toss the paneer....for a minute and switch off the fire....we do not want the paneer to get roasted as this will result in thick crust...I like my panner soft, we just want it to get coated with the that it will be soft and moist and the heat makes the pores open....and the gravy flavors will seep right in.. This step is entirely optional, you can skip it....but I do recommend it.

Meanwhile, our tomato gravy has reduced to half....and oil has started coming out.....add in 1 tsp kasuri methi.

Add in the cashew-nut paste.......and I added some water (about one and half cup) to the blender and washed out the remaining cashew paste into the gravy.

Allow the gravy to come to a boil and again simmer....add in 1 tsp sugar....and the flavorful paneer.

Simmer the paneer in the gravy for 2 min......add in 1/4 cup of cream....

Give it a stir...simmer for a min....sprinkle coriander leaves....serve hot!!

Serve with Tandoori Roti or Hot Phulka!

The gravy might get a bit can add 1/4 cup boiled water to thin it out.
When sauteing the paneer try not to saute it too much that the paneer becomes crisp and hard on the outside. I do not soak paneer in water!
You can substitute Paneer with Tofu. You can also cut paneer into cubes or triangles.
You can garnish with sliced green chillies.

You might also like Paneer Bhurji / Paneer Bhujiya


  1. What an awesome recipe, of course , I do make this but very rarely, and we love the creamy taste of the dish.I truly admire your presentation of series of steps which will help even a beginner to grasp the recipe quickly...great work.

    1. Thank you Radha, though this is a popular dish, my idea is mainly to help the novice cook.

  2. hey first thing I do after reaching ofice is checking this little space of wonder.. i can say that I am addicted to this space. please post recipe eveday I know too much of a demand :-)
    coming to the post ,I too make the similar way except that paneer frying part. that is a totally new tip to me..
    and I add a spoon of coriander powder as well. otherwise everything is same. but this is a pure indulgence chechi..
    I usually make a low fat version ..but add more onions and grind half of it after frying ., so that I get a more thicker gravy..hope nami and nidhi would be looking forward for holidays.

    1. Mitha, you are so sweet and kind....I wish I could post every day too!! I do not add coriander powder for this particular dish, but do add in another recipe....yes, for everyday use low fat version you mentioned is the best....thanks for the inputs...ya, both the kids are at home and started bullying me already :)

  3. OMG...delicious! I have recently been introduced to paneer and I LOVE it. Where do you buy it? I have never seen it in my grocery store? This looks amazing!!! Pass me the naan and I'd be in heaven.

    1. Renee, you can get paneer at Indian grocery, paneer is also known as cottage cheese.....thanks for stopping by :)

  4. I just saw a recipe for buttered chicken and now this. I can see why these two recipes are the most sought after. Garlic, butter, cream, nuts - oh my goodness! I want a big bowl of this!

    1. MJ, its such a pleasure to read your comments :)

  5. bindhuxavieradv@gmail.comMarch 25, 2014 at 3:51 PM

    It's very useful for me, I'm a friend of Selin, plz post me naan

    1. Hi Bindhu, thanks for stopping by....yes, I will post naan soon :)

  6. This look so fantastic! Love your blog!

    1. Thank you Beulah for stopping by and for the foodie love :)

  7. Looks mouthwatering, Nisa. I guess the sauce would be great to go with tofu too.

  8. Thanku soo much Chechi. Ths is my daughter's fav dish nw i want to make ths at hme. And a big thy fr ths step by step presentations and ths is vry helpful for me ..

    1. You are so welcome! Thanks for stopping by :)

  9. Restaurant style curry right at home!!
    Was perfect ..tried this..ohh was super decilious..exactly the same as we get in a restaurant..flavour the taste the smell was exactly the same..
    thanks for sharing
    no doubt gonna try again again and again

  10. Mam ur great your expiation is awesome with step by step.I tried last Sunday it came really well and paneer frying sound is amazing this is totally creamy dish I'm not expert in cooking but this my first dish which i make it came gud i felt happy everybody liked.Thanks mam for this best recipes....
    Creamy paneer

  11. Mam u said tomato puree right.. my doubt is that whether we should peel and boil the tomatoes or just blend it raw.. mam can u also post how to make cheese cake..

    1. Hi Nithya, just put the cut tomatoes into a blender and blend away....hope this helps. I have posted a mango cheese cake recipe, just search on the google search on the right side bar. Will be posting one plain cheesecake soon..

  12. Chechi i tried this too came out really tasty.. gnna try your chocolate poke cake today.. wish me luck..

  13. tried egg curry and poke cake came out really good. thank u mam.. can u help us by showing how to make lasagna using chicken?? will be really helpful..

  14. Recipe was awesome and as also pic of recipes is to awesome...Going to try this..
    Soya Paneer


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