Paneer Butter Masala Recipe – Authentic Indian Tomato & Cashew Gravy

Last Updated on 6 months ago by Neha Deshmukh

Paneer Butter Masala Recipe – Authentic Indian Tomato & Cashew Gravy

Hey everyone! If you’re anything like me, a cozy night in often means craving a rich, flavorful curry. And honestly, nothing hits the spot quite like a classic Paneer Butter Masala. I remember the first time I tried to make this – it felt a little daunting, but trust me, it’s way easier than it looks! This recipe is my go-to, and I’m so excited to share it with you. Get ready for a restaurant-quality dish, made right in your own kitchen.

Why You’ll Love This Recipe

This Paneer Butter Masala isn’t just good – it’s seriously comforting. The creamy tomato and cashew gravy is unbelievably flavorful, and the paneer just melts in your mouth. It’s perfect for a weeknight dinner, a special occasion, or anytime you’re craving a taste of India. Plus, it’s surprisingly easy to make, even if you’re new to Indian cooking.

Ingredients

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

• 200g paneer, cubed
• 2 medium onions, finely chopped
• 1 green bell pepper, chopped
• 3 medium tomatoes, roughly chopped
• 1 tbsp ginger-garlic paste
• 2 green chilies, slit (adjust to your spice preference!)
• 2 tbsp cashews
• 1 cup yogurt (full fat works best for richness)
• 1 tsp turmeric powder
• 1 tsp red chili powder
• 1 tsp garam masala
• 1 tsp kasuri methi (dried fenugreek leaves)
• Salt to taste
• Ghee or butter for cooking

Ingredient Notes

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

• Cashews: Don’t skip these! They create the unbelievably creamy texture of the gravy. Soaking them in warm water for 10-15 minutes beforehand helps them blend even smoother.
• Ghee: Using ghee (clarified butter) really elevates the flavor and gives it that authentic Indian restaurant taste. But butter works beautifully too, if you prefer.
• Kasuri Methi: This is a game-changer. It adds a unique, slightly bitter aroma that’s so characteristic of Paneer Butter Masala. You can find it at most Indian grocery stores.
• Spice Levels: Indian cuisine is all about personal preference! Feel free to adjust the amount of red chili powder and green chilies to suit your taste. Some regions in India prefer a milder flavor, while others like it fiery hot.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, let’s make the base of our gravy. Blend the tomatoes and cashews into a super smooth purée. Set this aside – it’s the heart of our dish!
2. Now, heat a generous amount of ghee in a pan over medium heat. Gently fry the paneer cubes until they’re lightly golden on all sides. Don’t overcrowd the pan! Remove the paneer and set it aside.
3. In the same pan, sauté the chopped onions until they turn a beautiful golden brown. This takes a little patience, but it’s worth it for the flavor. Add the ginger-garlic paste and green chilies, and cook for another minute until fragrant.
4. Time for the spices! Add the yogurt, turmeric powder, red chili powder, and garam masala to the pan. Cook this mixture for a few minutes, stirring constantly, until the oil starts to separate from the edges. This is a sign that the spices are nicely roasted.
5. Pour in the tomato-cashew purée and let it simmer. Cook until the mixture thickens and the oil surfaces again – about 10-15 minutes. Stir occasionally to prevent sticking.
6. Gently add the fried paneer and chopped bell pepper to the gravy. Sprinkle in the kasuri methi, crushing it between your palms to release its aroma. Mix everything gently to ensure the paneer is coated in that luscious masala.
7. Finally, garnish with fresh cilantro and serve hot!

Expert Tips

• Don’t skip browning the onions – it builds a ton of flavor.
• If the gravy is too thick, add a splash of water or milk to reach your desired consistency.
• For extra richness, add a tablespoon of butter at the very end.

Variations

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

• Vegan Adaptation: Swap the yogurt for a plant-based yogurt (like cashew or soy yogurt) and use vegan butter instead of ghee. It’s just as delicious!
• Gluten-Free: This recipe is naturally gluten-free, but always double-check the labels of your spices to be sure.
• Spice Level Adjustments: My family loves a bit of a kick, but you can easily reduce the amount of chili powder or omit the green chilies for a milder flavor.
• Festival Adaptations: This is a popular dish for Diwali and other celebrations. I often make a larger batch when I’m entertaining!

Serving Suggestions

Paneer Butter Masala is best served hot with:

• Naan bread (perfect for soaking up all that gravy!)
• Steamed basmati rice
• Raita (yogurt dip)
• A side of fresh 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 flavors actually develop even more overnight!

FAQs

Let’s answer some common questions:

• What type of paneer works best for Paneer Butter Masala? I prefer using fresh paneer, but frozen paneer works well too. Just make sure to thaw it completely before using.
• Can I make this recipe ahead of time? Absolutely! You can make the gravy a day or two in advance and store it in the refrigerator. Just add the paneer and kasuri methi when you’re ready to serve.
• How can I adjust the sweetness of the gravy? If you prefer a sweeter gravy, you can add a teaspoon of sugar or a drizzle of honey.
• What is Kasuri Methi and can I substitute it? Kasuri Methi is dried fenugreek leaves. It has a unique aroma and flavor. If you can’t find it, you can try substituting it with a pinch of dried oregano, but it won’t be quite the same.
• Is it possible to make Paneer Butter Masala without cashews? Yes, you can! The gravy won’t be as creamy, but you can use sunflower seeds or almonds as a substitute.

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