Paneer Butter Masala Recipe – Authentic Indian Gravy with Shallots

Last Updated on 2 months by Neha Deshmukh

Paneer Butter Masala Recipe – Authentic Indian Gravy with Shallots

Hey everyone! 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. I remember the first time I attempted this – it wasn’t quite right, but with a few tweaks, it became a family favorite. Today, I’m sharing my go-to recipe, complete with all the little secrets for that authentic Indian restaurant taste. Let’s get cooking!

Why You’ll Love This Recipe

This isn’t just another Paneer Butter Masala recipe. We’re taking things up a notch with the addition of shallots. Trust me on this one – they add a depth of flavor you won’t believe! It’s creamy, it’s comforting, and it’s surprisingly easy to make. Plus, I’ll walk you through everything, from choosing the right paneer to adjusting the spice level.

Ingredients

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

• 200 gm Paneer, cut into cubes
• 1 Onion, chopped
• ½ cup Shallots (small onions)
• ½ cup Curd (Plain yogurt)
• 2 tablespoon Ghee plus oil
• 1 teaspoon Cumin seeds
• 1 Green chilli, slit
• 1 teaspoon Ginger, grated
• 2 teaspoon Red chilli powder
• 1 tablespoon Coriander powder
• 1 teaspoon Amchoor powder
• ½ teaspoon Cumin seeds powder
• ½ teaspoon Garam masala
• ½ teaspoon Turmeric powder

Ingredient Notes

Let’s talk ingredients – because the quality really makes a difference!

Paneer: Choosing the Right Type & Softness
You want a paneer that holds its shape but isn’t rubbery. I prefer using fresh paneer, but frozen works in a pinch. A quick soak in hot water (as we’ll do in the recipe) helps keep it soft and prevents it from drying out.

Shallots: The Secret to a Richer Flavor
Seriously, don’t skip these! Shallots have a milder, sweeter flavor than onions, and they melt beautifully into the gravy, adding incredible depth. If you absolutely can’t find them, you can substitute with a small amount of finely chopped onion, but it won’t be quite the same.

Ghee: Traditional Flavor vs. Oil Substitutions
Ghee adds that classic, rich flavor. But if you’re avoiding ghee, you can use oil – I recommend a neutral-flavored oil like sunflower or canola. Just know that the flavor profile will be slightly different.

Spice Powders: Freshness & Quality
Fresh spice powders are key! They lose their potency over time, so try to use relatively new ones. Store them in airtight containers away from heat and light.

Curd (Yogurt): Full-Fat vs. Low-Fat & Regional Variations
Full-fat curd gives the richest, creamiest result. However, you can use low-fat yogurt if you prefer. In some regions of India, dahi (yogurt) is slightly tangier – feel free to adjust the amount to your taste.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, cut your paneer into cubes and gently rinse. Then, soak it in boiling hot water for about 10-15 minutes. This keeps it wonderfully soft.
2. While the paneer soaks, whisk the curd in a bowl until it’s completely smooth. Set it aside – we want it ready to go.
3. Heat the ghee and oil in a pan over medium heat. Add the cumin seeds and let them sizzle for a few seconds. Then, add the slit green chilli and grated ginger, and sauté briefly until fragrant.
4. Now, add the shallots and sauté on medium-low heat until they become translucent. This takes a little patience, but it’s worth it!
5. Add the chopped onions and cook until they’re soft and golden brown. We’re building layers of flavor here.
6. Time for the spices! Stir in the red chilli powder, coriander powder, amchoor powder, cumin powder, garam masala, and turmeric powder. Cook on low heat for about a minute, stirring constantly to prevent burning.
7. Pour in the whisked curd and cook until the oil starts to separate from the mixture. This usually takes about a minute – keep stirring!
8. Add the chopped tomatoes and salt. Cook until the tomatoes soften and release their oil.
9. Pour in ½ cup of water, mix well, and bring the gravy to a boil.
10. Drain the paneer cubes and gently add them to the pan. Gently mix to coat them with the gravy.
11. Cover the pan and simmer for 2 minutes. Give it a gentle stir midway to prevent sticking.
12. Garnish with fresh coriander leaves and serve hot with roti or rice.

Expert Tips

• Don’t overcook the paneer! It can become rubbery. The short simmer time is all you need.
• Adjust the spice level to your liking. Start with less chilli powder and add more if you prefer a spicier dish.
• For a smoother gravy, you can blend the tomato-onion mixture before adding the curd.

Variations

Vegan Paneer Butter Masala: Swap the paneer for firm or extra-firm tofu, and use a plant-based yogurt and oil instead of ghee.

Gluten-Free Adaptation: This recipe is naturally gluten-free! Just double-check your spice powders to ensure they haven’t been processed with gluten-containing ingredients.

Spice Level Adjustment (Mild, Medium, Hot):
* Mild: Reduce the red chilli powder to 1 teaspoon.
* Medium: Use the recipe as written.
* Hot: Add an extra ½ teaspoon of red chilli powder or a pinch of cayenne pepper.

Festival Adaptations (Navratri, Diwali): During Navratri, you can skip the onions and garlic for a vrat (fasting) friendly version. For Diwali, a richer, more decadent gravy is always welcome – feel free to add a tablespoon of cashew paste!

Serving Suggestions

Roti & Paratha Pairings: This Paneer Butter Masala is amazing with a warm, flaky roti or paratha. Garlic naan is also a fantastic choice!

Rice Varieties to Complement the Gravy: Basmati rice is a classic pairing. Jeera rice (cumin rice) also works beautifully.

Side Dishes & Salads: A simple cucumber raita or a fresh green salad adds a nice contrast to the richness of the curry.

Storage Instructions

Refrigerating Leftovers: Store leftovers in an airtight container in the refrigerator for up to 3 days.

Freezing for Longer Storage: You can freeze Paneer Butter Masala for up to 2 months. The texture of the paneer might change slightly upon thawing, but it will still taste delicious.

Reheating Instructions: Reheat gently on the stovetop or in the microwave. Add a splash of water or milk if the gravy has thickened too much.

FAQs

What type of paneer is best for Paneer Butter Masala?
Fresh paneer is ideal, but frozen works too. Just remember to soak it in hot water to soften it.

Can I make this recipe without shallots? What can I substitute?
You can use finely chopped onion as a substitute, but the flavor won’t be quite as complex.

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

What is amchoor powder and where can I find it?
Amchoor powder is made from dried mango powder and adds a tangy flavor. You can find it at Indian grocery stores or online.

Can I use cashew paste to make the gravy richer?
Absolutely! Add a tablespoon of cashew paste along with the curd for an extra creamy and luxurious gravy.

How do I prevent the paneer from becoming rubbery?
Don’t overcook it! The short simmer time is all you need. Soaking it in hot water beforehand also helps.

Enjoy! I hope this recipe brings a little bit of Indian restaurant magic to your kitchen. Let me know how it turns out in the comments below!