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Paneer butter masala served in a pan
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East Paneer Butter Masala Recipe | Paneer Butter Masala Restaurant Style

Paneer butter masala is a very popular North Indian dish made from soft and succulent Paneer also known as Indian cottage cheese assaulted with different spices in a tomato based rich creamy gravy.
Prep Time20 mins
Cook Time20 mins
Total Time40 mins
Course: Main Course / Side dish, Side Dish / Curry
Cuisine: Indian (North Indian)
Keyword: Paneer Butter Masala, Paneer Makhani, Paneer Curry, Paneer Recipe, Butter Paneer,
Servings: 5
Calories: 260kcal
Author: Padma Veeranki


To marinate:

For onion paste:

  • 2 Large Onions Peel, cut, blanch in boiling water for 10 min & grind to a paste

For tomato puree:

  • 2 Large Tomatoes Blanch in boiling water for 10 min, peel & grind to a paste

For the Masala paste:

  • 1 tsp Oil
  • 1 inch Ginger
  • 6 Garlic Pods
  • ½ inch Cinnamon Stick
  • 4 Cloves
  • 1 Cardamom
  • 10 Cashews

Other Ingredients For Gravy:

  • 1 tbsp Oil
  • 1 inch Cube Butter
  • 1 Bay Leaf
  • ½ inch Cinnamon Stick
  • 2 Cloves
  • 1 Cardamom
  • 1 tsp Red Chilli Powder
  • ½ tsp Turmeric Powder
  • Salt to taste
  • ½ cup Water
  • 1 tsp Sugar
  • 2 Green Chillies Slit lengthwise
  • ½ tsp Garam Masala Powder
  • 1 tbsp Heavy Cream Optional
  • Handful of chopped coriander


  • Marinate paneer cubes for 15 minutes with ingredients under the heading “ To marinate”.
  • For the masala paste, heat oil in a small pan over medium heat. Add ginger, garlic, cloves, cinnamon, cardamom and some cashews. Roast the till they turn light brown, turn off heat and let it cool. Grind these to a smooth paste adding little water.
  • In the same pan sauté marinated paneer for 2 to 3 minutes on medium flame till you get a light brown colour, remove and keep it aside.
  • Heat another skillet over medium heat with butter and oil, season with bay leaf, cinnamon, cloves and cardamom. Stir for few seconds.
  • Add onion paste and fry till you get a nice brown colour. This takes about 5 to 7 minutes.
  • At this stage add the tomato puree, red chilli powder, turmeric and sauté for 3 more minutes.
  • Now add the masala paste and sauté till the raw smell goes away. This takes another 3 to 5 minutes.
  • Add some water, little sugar, adjust salt and bring to boil on low heat. Now add fried paneer cubes, slit green chillies, mix well and let it boil for 2 more minutes or till you get the desired consistency.
  • Add garam masala powder, chopped coriander and some cream(optional).
  • Allow it for another boil and turn off heat.
  • Garnish with coriander and lip-smacking Paneer butter masala is ready to be served with rotis, naan, parathas, vegetable pulao.

Recipe Video


  • Adjust spice levels with chilli powder and dry spices in the masala paste to suit your taste.
  • You can skip the step to make masala paste and add 2 teaspoons of ginger-garlic paste and make cashew paste by soaking cashews in water for 15 min.
  • Sugar is used to balance out salt and sour flavours in a dish.
  • Do not overcook paneer, it will become hard and rubbery.
  • Tofu is a good substitute for vegans instead of paneer.
  • You can sprinkle Kasoori methi (dried fenugreek leaves) at the end just before turning off the heat. It will give a good flavour.
  • Prep time increases if you are going to make paneer at home.