Paneer Butter Masala Recipe- Authentic Indian Gravy with Cashews

Last Updated on 2 months by Neha Deshmukh

Paneer Butter Masala Recipe: Authentic Indian Gravy with Cashews

Hello friends! If you’re anything like me, a cozy night in often calls for a rich, flavorful curry. And honestly, few things hit the spot quite like a perfectly made Paneer Butter Masala. This isn’t just a recipe; it’s the recipe I’ve tweaked and perfected over the years, and I’m so excited to finally share it with you. Get ready for a creamy, dreamy, utterly delicious experience!

Why You’ll Love This Recipe

This Paneer Butter Masala is special. It’s not overly complicated, but the depth of flavor is incredible. We’re building layers of taste with a homemade spice blend, creamy cashews, and a touch of sweetness. It’s the kind of dish that feels both comforting and a little bit fancy – perfect for a weeknight treat or a special occasion. Plus, it’s surprisingly adaptable to your preferences!

Ingredients

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

• 2 cups Cottage cheese/Paneer
• 1 Onion
• 3 Tomato
• 1 tablespoon Ghee/Clarified butter
• 1 tablespoon Olive oil
• 2 Cloves
• 0.5 teaspoon Black pepper corns
• 1 inch Cinnamon stick
• 1 Green chili
• 2 Green cardamom
• 0.5 teaspoon Mace
• 0.25 teaspoon Nutmeg
• 0.25 teaspoon Caraway seeds
• 0.25 teaspoon Cumin seeds
• 1 inch Ginger
• 2 Garlic cloves
• 0.25 cup Cashew nuts
• 1 cup Yogurt
• 0.5 cup Milk
• 0.25 teaspoon Turmeric powder
• 0.25 teaspoon Red chili powder
• 0.25 teaspoon Coriander powder
• 0.75 teaspoon Salt
• 0.25 teaspoon Garam masala powder
• 2 tablespoon Coriander leaves/Cilantro

Ingredient Notes

Let’s talk ingredients! A few little things can make a big difference in this recipe.

Paneer (Cottage Cheese) – Types & Quality: You can use store-bought or homemade paneer. I prefer a slightly firm paneer that holds its shape well during cooking. If using store-bought, look for paneer that’s fresh and not too dry.

Ghee vs. Oil – Flavor & Aroma: Ghee adds a beautiful, nutty aroma and richness that’s traditional in Indian cooking. However, olive oil works well too, especially if you’re looking for a lighter option.

Spice Blend – Regional Variations & Freshness: Whole spices are key! Toasting them lightly before grinding releases their essential oils and intensifies the flavor. Feel free to adjust the spice levels to your liking – this is where you can really make it your own.

Cashew Nuts – Importance for Creaminess: Don’t skip the cashews! They create a wonderfully creamy texture in the gravy. Soaking them in warm water for 15-20 minutes before blending helps achieve an even smoother paste.

Yogurt – Full Fat vs. Low Fat: Full-fat yogurt gives the richest flavor and texture. But if you prefer, you can use low-fat yogurt – just be mindful that it might slightly affect the creaminess.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, heat the ghee in a medium saucepan over medium heat. Gently fry the paneer cubes until they’re golden brown on all sides – about 3-4 minutes. Set them aside.
2. In the same pan, add the olive oil. Sauté the chopped onions, minced garlic, grated ginger, and chopped green chili until the onions soften and turn translucent – around 6 minutes.
3. Add the chopped tomatoes and cook until they become mushy and softened, about 5-7 minutes.
4. Now for the spice magic! Add the whole spices – caraway seeds, cinnamon stick, cardamom, mace, cloves, and black pepper corns – and fry for about 2 minutes until fragrant. Let them cool slightly, then grind them into a smooth paste.
5. While the spices cool, blend the cashew nuts and yogurt into a creamy, smooth paste. Set this aside too.
6. Heat a little more oil in a separate pan. Add the cumin seeds and let them splutter. Then, add the onion-spice paste and fry for 2-3 minutes until the oil starts to separate from the mixture. This is a good sign – it means the spices are well-cooked!
7. Stir in the turmeric powder, red chili powder, coriander powder, and garam masala powder. Cook for another 2 minutes, stirring constantly to prevent burning.
8. Add the cashew-yogurt paste and salt. Cook for 2 minutes, stirring well. Then, pour in the milk and bring the gravy to a gentle boil.
9. Gently add the fried paneer to the gravy. Simmer for 3-4 minutes, allowing the flavors to meld together beautifully.
10. Finally, garnish with fresh cilantro and serve hot!

Expert Tips

• Don’t overcrowd the pan when frying the paneer. Fry in batches if necessary to ensure even browning.
• If the gravy becomes too thick, add a splash of milk or water to adjust the consistency.
• Taste and adjust the seasoning as needed. Everyone’s palate is different!

Variations

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

Vegan Paneer Butter Masala: Substitute the paneer with firm tofu and use a plant-based yogurt and cashew cream. It’s surprisingly delicious! My friend, Priya, swears by this version.

Gluten-Free Adaptation: This recipe is naturally gluten-free! Just double-check the garam masala you’re using to ensure it doesn’t contain any hidden gluten.

Spice Level Adjustment (Mild, Medium, Hot): Reduce or increase the amount of red chili powder to control the heat. You can also add a pinch of cayenne pepper for an extra kick.

Festival Adaptations (Navratri, Diwali): During Navratri, you can skip the onion and garlic for a vrat-friendly version. For Diwali, a richer, more decadent gravy is always welcome!

Serving Suggestions

This Paneer Butter Masala is incredibly versatile.

Best Breads (Naan, Poori, Chapati): It’s amazing with naan, poori, or chapati for soaking up all that delicious gravy.

Rice Pairings: Steamed basmati rice or jeera rice (cumin rice) are perfect accompaniments.

Side Dish Options: A simple cucumber raita or a side of mixed greens can provide a refreshing contrast to the richness of the curry.

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 flavors actually develop even more overnight!

FAQs

What is the best type of paneer to use for Paneer Butter Masala? A slightly firm, fresh paneer is ideal.

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. Add the paneer just before serving.

How can I adjust the sweetness of the gravy? A tiny pinch of sugar can balance the acidity of the tomatoes.

What can I substitute for cashew nuts? Sunflower seeds or almonds can be used as a substitute, but the flavor and texture will be slightly different.

How do I prevent the paneer from becoming rubbery? Don’t overcook the paneer! Gently fry it until golden brown and then simmer it in the gravy for just a few minutes.

Is garam masala essential for this recipe? While you can technically make it without, garam masala adds a unique warmth and complexity that’s hard to replicate.

Can I use tomato puree instead of fresh tomatoes? Yes, you can! Use about 2 cups of tomato puree. However, fresh tomatoes provide a brighter, more vibrant flavor.