Paneer Butter Masala Recipe – Cashew Cream & Kashmiri Chilli

Last Updated on 4 months by Neha Deshmukh

Paneer Butter Masala Recipe – Cashew Cream & Kashmiri Chilli

Introduction

Oh, Paneer Butter Masala. Just the name conjures up images of cozy nights, flavorful indulgence, and happy faces around the dinner table, doesn’t it? This is the dish I make when I want to impress, comfort, or just treat myself. I first made this for a potluck with friends, and it disappeared in minutes! It’s a classic for a reason, and this version, with its rich cashew cream and the beautiful color from Kashmiri chillies, is extra special. Let’s get cooking!

Why You’ll Love This Recipe

This Paneer Butter Masala isn’t just another recipe; it’s an experience. It’s creamy, flavorful, and has a lovely balance of sweet and spicy. The cashew cream adds a luxurious texture you won’t find in other recipes, and the Kashmiri chilli powder gives it that gorgeous, vibrant red hue. Plus, it’s surprisingly easy to make – perfect for a weeknight treat or a weekend feast.

Ingredients

Here’s what you’ll need to create this magic:

• 2 tbsp oil
• 12 paneer cubes
• 2 tbsp cashews
• 1 tsp butter
• 1 bay leaf
• 3 cloves
• 2 cardamom pods
• 1 tsp cumin seeds
• 1 onion, finely chopped
• 1 tsp ginger-garlic paste
• ½ tsp turmeric powder (about 2g)
• 1 tsp Kashmiri red chilli powder (about 4g)
• 1 tsp coriander powder (about 5g)
• ½ tsp cumin powder (about 2.5g)
• ½ tsp garam masala (about 2.5g)
• 1 tsp salt (about 6g)
• 1 ½ cup tomato puree (about 360ml)
• 2 tbsp cashew paste
• 2 tbsp cream
• ½ – 1 cup water (about 120-240ml)
• 1 tsp crushed kasuri methi
• 2 tbsp finely chopped coriander

Ingredient Notes

Let’s talk ingredients! A few things make this recipe shine:

• Kashmiri Red Chilli Powder: Don’t skip this! It gives the dish its beautiful color and a mild, fruity heat. It’s different from regular chilli powder, which can be too harsh. You can find it at most Indian grocery stores or online.
• Cashew Paste: This is the secret to the incredibly creamy texture. You can buy it pre-made, or easily make your own by soaking cashews in warm water for 30 minutes and then blending them into a smooth paste.
• Garam Masala: Every family has their favorite blend! Feel free to use yours. A good garam masala will have a warm, aromatic flavor.
• Bay Leaf & Whole Spices: Don’t underestimate the power of these little guys! They infuse the oil with incredible flavor right from the start. I always use fresh, whole spices when I can.

Step-By-Step Instructions

Alright, let’s get cooking!

1. Heat the oil in a kadai (or a deep pan) over medium heat. Gently sauté the paneer cubes until they’re lightly golden. Don’t overcrowd the pan! Remove and set aside.
2. In the same oil, fry the cashews until they turn golden brown and fragrant. Remove and set aside – these add a lovely crunch.
3. Now, add the butter, bay leaf, cloves, cardamom pods, and cumin seeds to the hot oil. Sauté for about 30 seconds, until everything is fragrant. This is where the magic begins!
4. Add the chopped onion and ginger-garlic paste. Sauté until the onions turn golden brown – this will take about 5-7 minutes. Patience is key here; well-browned onions are crucial for flavor.
5. Add the turmeric powder, Kashmiri red chilli powder, coriander powder, cumin powder, garam masala, and salt. Sauté on low heat for 2 minutes, stirring constantly to prevent burning.
6. Pour in the tomato puree and cook until the oil starts to separate from the masala – this usually takes about 10 minutes. Keep stirring!
7. Mix in the cashew paste and cream. Cook for 2-3 minutes, stirring until everything is well combined and the sauce is smooth.
8. Adjust the consistency by adding water, a little at a time, until you reach your desired thickness. Simmer for 2 minutes.
9. Gently add the fried paneer and cashews. Mix carefully and simmer for another 3 minutes, allowing the paneer to soak up all those delicious flavors.
10. Sprinkle with crushed kasuri methi and chopped coriander. Stir well and serve hot with naan or roti.

Expert Tips

• Don’t overcook the paneer! It can become rubbery. A light golden sear is all you need.
• Low and slow is the way to go. Sautéing the spices on low heat releases their flavors without burning them.
• Taste as you go! Adjust the salt and spice levels to your liking.

Variations

• Vegan Adaptation: Swap the paneer for tofu, the butter for vegan butter, and the cream for coconut cream. It’s surprisingly delicious!
• Spice Level Adjustment: If you like it spicier, add a pinch of cayenne pepper or a finely chopped green chilli.
• Restaurant-Style Variation: Add a tablespoon of sugar to the gravy for a slightly sweeter, more restaurant-style flavor.
• Festival Adaptations: This is a fantastic dish to serve during Diwali or other festive occasions. You can add a sprinkle of chopped nuts for extra richness.

Serving Suggestions

Paneer Butter Masala is best served hot with:

• Naan bread
• Roti
• Steamed basmati rice
• A side of raita (yogurt dip)

Storage Instructions

Leftovers can be stored in an airtight container in the refrigerator for up to 3 days. Reheat gently on the stovetop or in the microwave. The sauce may thicken upon refrigeration, so you might need to add a splash of water when reheating.

FAQs

• What type of paneer is best for Paneer Butter Masala? Fresh, soft paneer works best. If using store-bought paneer, soak it in warm water for 15-20 minutes to soften it up.
• Can I make the cashew paste at home? Absolutely! Soak about ½ cup of cashews in warm water for 30 minutes, then blend them with a little fresh water until smooth.
• How can I adjust the sweetness in this recipe? Add a teaspoon of sugar or a drizzle of honey to balance the flavors.
• What is the best way to prevent the gravy from splitting? Cook on low heat and stir frequently. Adding a tablespoon of cream at the end can also help.
• Can this be made in an Instant Pot? Yes! Sauté the onions and spices in the Instant Pot using the sauté function, then add the remaining ingredients and cook on high pressure for 8-10 minutes, followed by a natural pressure release.