Butter Paneer Recipe – Authentic Indian Paneer Curry with Cashews

Last Updated on 2 months by Neha Deshmukh

Butter Paneer Recipe – Authentic Indian Paneer Curry with Cashews

Hey everyone! If you’re anything like me, a creamy, comforting bowl of Butter Paneer is pure happiness. It’s one of those dishes that just feels like a hug in food form. I remember the first time I tried to make it – it felt a little daunting, but honestly, it’s so worth the effort. Today, I’m sharing my go-to recipe for a truly authentic Butter Paneer, packed with flavor and that signature rich sauce. Let’s get cooking!

Why You’ll Love This Recipe

This Butter Paneer isn’t just another curry. It’s a celebration of flavors! The silky smooth tomato-cashew gravy, the perfectly browned paneer, and the aromatic spices all come together beautifully. It’s a restaurant-quality dish you can easily make at home. Plus, it’s surprisingly versatile – you can adjust the spice level to your liking and even make it vegan!

Ingredients

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

• 8 oz Paneer, cut into bite-sized pieces
• 1/2 medium Onion, finely chopped (about 100g)
• 4 garlic cloves, minced
• 2 tsp Ginger, grated
• 14.5 oz Canned Whole Peeled Tomatoes (about 410g)
• 14 whole Cashews
• 1 Green Chili, slit (adjust to your spice preference)
• 1 tsp Cumin Seeds
• 1 tsp Kashmiri Red Chili Powder
• 1/2 tsp Garam Masala
• 3/4 tsp Salt (or to taste)
• 1/2 tsp Sugar
• 1 tsp Dried Fenugreek Leaves (Kasuri Methi)
• 4 tbsp Butter (60g)
• ?? cup Water (for soaking cashews – about 120ml)
• 1-1.5 cups Water (for gravy – 240-360ml)

Ingredient Notes

Let’s talk ingredients! A few things can really elevate this dish:

• Kashmiri Red Chili Powder: Don’t skip this! It’s what gives the curry that gorgeous vibrant red color without adding a ton of heat. It’s a game changer.
• Paneer Quality: Fresh, soft paneer is best. If you can find it, homemade is amazing! If using store-bought, you can soak it in warm water for 15-20 minutes to soften it up.
• Cashew Soaking: Soaking the cashews is crucial. It softens them, allowing them to blend into a super smooth paste. I usually soak mine in warm water for at least 30 minutes, but longer is fine too.
• Garam Masala Variations: Garam masala blends vary regionally in India. Feel free to use your favorite brand or even make your own! Each blend will add a slightly different nuance to the flavor.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, let’s soak those cashews. Place 14 whole cashews in a bowl and cover with about 1/2 cup of water. Set aside to soften.
2. Next, fry the paneer. Melt 1 tbsp of butter in a pan over medium heat. Add the paneer and fry until golden brown on all sides. Remove and set aside. Don’t overcrowd the pan – work in batches if needed.
3. Now, let’s build the base of our gravy. In the same pan, melt another 1 tbsp of butter. Add the chopped onion and sauté until softened and lightly golden. Add the minced garlic and grated ginger and cook for another minute until fragrant.
4. Add the canned whole peeled tomatoes. Cook for 10-12 minutes, stirring occasionally, until they soften and thicken.
5. Time to blend! Add the soaked cashews (and the soaking water) to the tomato mixture. Blend until you have a super smooth paste. If it’s too thick, add a little more water. You can strain the paste for an extra silky texture, if you like.
6. Back to the pan! Heat 1 tbsp of butter. Add the slit green chili and cumin seeds. Cook for about 20 seconds until the cumin seeds start to sizzle. Then, add the Kashmiri red chili powder and cook for another 10 seconds.
7. Pour in the blended cashew-tomato puree. Cook for about 5 minutes, stirring frequently, until the sauce thickens slightly.
8. Now for the finishing touches! Add the garam masala, sugar, salt, and dried fenugreek leaves. Mix well.
9. Gently add the fried paneer to the gravy and simmer for 10 minutes, allowing the flavors to meld together.
10. Finally, stir in the remaining 1 tbsp of butter just before serving. This adds a lovely richness and shine.

Expert Tips

• Don’t be afraid to adjust the spice level! Add more or less green chili and Kashmiri red chili powder to suit your taste.
• For a richer flavor, use full-fat butter.
• Simmering the paneer in the gravy for a longer time will allow it to absorb more flavor.

Variations

• Vegan Butter Paneer: Swap the butter for a vegan butter alternative and use plant-based paneer (or firm tofu!).
• Gluten-Free Considerations: This recipe is naturally gluten-free, but always double-check the labels of your garam masala and other spice blends.
• Spice Level Adjustments:
  • Mild: Reduce or omit the green chili and use less Kashmiri red chili powder.
  • Medium: Use the recipe as written.
  • Hot: Add an extra green chili or a pinch of cayenne pepper.
• Festival Adaptations: This dish is a staple during Diwali and Eid celebrations in my family. I often make a larger batch to share with friends and neighbors!

Serving Suggestions

Butter Paneer is best served hot with naan, roti, or steamed rice. A side of raita (yogurt dip) and a simple salad complements it perfectly.

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 works best for butter paneer?

Fresh, soft paneer is ideal. If using store-bought, soaking it in warm water helps soften it.

Can I make the gravy ahead of time?

Absolutely! You can make the gravy up to 2 days in advance and store it in the refrigerator. Just add the paneer and finish cooking when you’re ready to serve.

How can I adjust the sweetness of the curry?

Adjust the amount of sugar to your liking. Start with 1/2 tsp and add more if needed.

What is the best way to bloom the spices?

Blooming the spices (cooking them briefly in hot oil) releases their flavors. Don’t burn them – just cook them until fragrant.

Can I use tomato puree instead of whole tomatoes?

You can, but whole tomatoes give a richer, more complex flavor. If using puree, use about 500ml and adjust the cooking time accordingly.