Instant Pot Paneer Butter Masala Recipe – Kashmiri Chili & Fenugreek

Last Updated on 2 months by Neha Deshmukh

Instant Pot Paneer Butter Masala Recipe – Kashmiri Chili & Fenugreek

Introduction

Oh, Paneer Butter Masala. Just the name conjures up images of creamy, dreamy goodness, right? It’s a classic for a reason! I remember the first time I tried to make this at home – it felt a little daunting, but honestly, with the Instant Pot, it’s surprisingly easy. This recipe is my go-to for a comforting weeknight meal or when I’m entertaining. The Kashmiri chili powder gives it a beautiful color and a gentle warmth, and the kasoori methi? That’s the secret ingredient that takes it over the top. Let’s get cooking!

Why You’ll Love This Recipe

This Instant Pot version cuts down on cooking time without sacrificing any of the rich, authentic flavors. It’s perfect for busy weeknights, and the Instant Pot makes the sauce incredibly smooth and creamy. Plus, the aroma while it’s cooking is divine. You’ll love how easy it is to achieve restaurant-quality Paneer Butter Masala in your own kitchen.

Ingredients

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

• 2 tablespoons ghee
• 1 large yellow onion
• 1 tablespoon ginger
• 1 tablespoon garlic
• 2 teaspoons Kashmiri red chili powder
• ½ teaspoon kosher salt (or to taste)
• ½ teaspoon ground turmeric
• 1 cup tomato puree (about 200ml)
• ½ cup water (about 120ml)
• 1 pound paneer (about 450g)
• ½ cup heavy cream (about 120ml)
• 2 tablespoons tomato paste
• 2 tablespoons kasoori methi (dried fenugreek leaves)
• 2 teaspoons sugar
• 1 teaspoon garam masala
• ½ cup chopped fresh cilantro

Ingredient Notes

Let’s talk ingredients – a few little tips can make all the difference!

• Ghee: The Foundation of Flavor Ghee really is the star here. It adds a nutty, rich flavor that butter just can’t replicate. If you don’t have ghee, you can use butter, but ghee is highly recommended.
• Kashmiri Red Chili Powder: Color and Mild Heat This is key for that gorgeous red color and a lovely, mild heat. It’s different from regular chili powder – it’s more about color than intense spice.
• Kasoori Methi (Dried Fenugreek Leaves): A Signature Aroma Don’t skip this! It adds a unique, slightly bitter aroma that’s essential to authentic Paneer Butter Masala. You can find it at most Indian grocery stores. Crush it between your palms before adding to release the flavor.
• Paneer: Choosing the Right Kind I prefer using a firm paneer that holds its shape well during cooking. You can find it fresh at Indian grocery stores, or sometimes pre-made in the refrigerated section of larger supermarkets.

Regional Variations in Spices

While this recipe is a great base, spice blends can vary across India! Some families add a pinch of cumin or coriander powder for extra depth. Feel free to experiment and make it your own.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, turn your Instant Pot on to the ‘Sauté’ mode. Add the ghee and let it melt.
2. Add the chopped onion and sauté for about 5-7 minutes, until it’s softened and lightly golden.
3. Now, add the ginger and garlic and sauté for another minute until fragrant.
4. Stir in the Kashmiri red chili powder, salt, and turmeric. Sauté for just 30 seconds – you want to bloom the spices, but not burn them.
5. Pour in the tomato puree and water. Then, sprinkle the garam masala on top without stirring. This helps to keep the flavor concentrated.
6. Secure the lid on your Instant Pot and set it to ‘Pressure Cook’ for 8 minutes.
7. Once the cooking time is up, do a quick pressure release. Be careful of the steam!
8. Using an immersion blender, carefully blend the sauce until it’s smooth and creamy.
9. Add the paneer, heavy cream, tomato paste, kasoori methi, and sugar. Stir well to combine.
10. Sauté for another 5 minutes, until everything is heated through and bubbly.
11. Garnish with fresh cilantro and serve hot with naan or rice.

Expert Tips

A few little things to help you nail this recipe:

• Achieving the Perfect Sauce Consistency If the sauce is too thick, add a splash of water. If it’s too thin, sauté for a few more minutes to let it reduce.
• Blooming the Spices for Maximum Flavor Sautéing the spices in ghee for a short time releases their essential oils, making the flavor much more intense.
• Using an Immersion Blender vs. a Regular Blender An immersion blender is super convenient for blending directly in the Instant Pot. If you’re using a regular blender, let the sauce cool slightly before blending, and be very careful when transferring hot liquids.
• Preventing Paneer from Becoming Rubbery Don’t overcook the paneer! Adding it towards the end of the cooking process keeps it soft and tender.

Variations

Want to switch things up? Here are a few ideas:

• Vegan Paneer Butter Masala: Substitute the paneer with firm or extra-firm tofu, and use a plant-based cream instead of heavy cream.
• Gluten-Free Paneer Butter Masala: This recipe is naturally gluten-free! Just double-check that your garam masala doesn’t contain any gluten-based ingredients.
• Spice Level Adjustment: Mild, Medium, Hot: Adjust the amount of Kashmiri red chili powder to control the heat. For a spicier version, add a pinch of cayenne pepper.
• Festival Adaptations: Diwali, Holi, or Special Occasions: This dish is always a hit during festivals! I often make a larger batch for Diwali gatherings.

Serving Suggestions

Serve this Paneer Butter Masala with:

• Naan bread (essential!)
• Basmati rice
• A side of raita (yogurt dip)
• A simple salad

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 add a splash of water or cream when reheating.

FAQs

Let’s answer some common questions:

• What is the best type of paneer to use for Butter Masala? A firm paneer that holds its shape well is ideal.
• Can I make this recipe without an Instant Pot? Yes! You can make it in a regular pot on the stovetop. Sauté the onions and spices as directed, then add the tomatoes and water and simmer for about 20-30 minutes, until the sauce has thickened.
• What can I substitute for Kasoori Methi? If you can’t find kasoori methi, you can use a teaspoon of dried fenugreek seeds, lightly toasted and crushed.
• How can I adjust the sweetness of the sauce? Add more or less sugar to taste.
• Can this be made ahead of time? Yes, you can make the sauce ahead of time and store it in the refrigerator. Add the paneer and cream just before serving.
• How do I prevent the sauce from splitting? Don’t boil the sauce vigorously after adding the cream. Gentle simmering is key.