Paneer Butter Masala Recipe – Authentic Kashmiri Chilli & Cashew Gravy

Last Updated on 4 months by Neha Deshmukh

Paneer Butter Masala Recipe – Authentic Kashmiri Chilli & Cashew Gravy

Introduction

Oh, Paneer Butter Masala. Just the name conjures up images of rich, creamy goodness, doesn’t it? This is the dish I make when I want to seriously impress, or honestly, just treat myself. I first made this for a family gathering and it disappeared in minutes! It’s a classic for a reason, and this recipe, with its focus on a truly authentic gravy, is one you’ll come back to again and again. Get ready for a flavour explosion!

Why You’ll Love This Recipe

This isn’t just another Paneer Butter Masala recipe. We’re building layers of flavour here, starting with a luscious cashew base and finishing with a touch of fresh cream. The Kashmiri chilli powder gives it that beautiful, vibrant colour without overpowering the taste. It’s a little bit of effort, but trust me, the results are absolutely worth it. You’ll be rewarded with a restaurant-quality dish, made right in your own kitchen.

Ingredients

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

• 200 grams paneer
• 15 grams raw cashew nuts
• 4 tablespoons unsalted butter
• 1 cinnamon stick
• 2 green chillies
• 1 tablespoon ginger paste
• 1 tablespoon garlic paste
• 4 medium ripe tomatoes
• 1 teaspoon Kashmiri red chilli powder
• 0.5 teaspoon coriander powder
• 1 tablespoon kasoori methi (dried fenugreek leaves)
• 3 tablespoons fresh cream
• 1 teaspoon sugar
• Salt to taste

Ingredient Notes

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

Cashew Nuts: The Key to Creaminess
Using cashews is non-negotiable for that incredibly smooth, velvety gravy. Don’t skimp on this!

Paneer: Choosing the Right Type
I prefer using a soft, non-rubbery paneer. If you’re using store-bought, look for paneer that’s packed in water, not air. You can also gently parboil it (as we do in the recipe) to keep it soft.

Kashmiri Chilli Powder: Colour and Flavour
This is what gives the dish its signature red hue and a mild, fruity flavour. It’s different from regular chilli powder, which can be too harsh. You can find it at most Indian grocery stores or online.

Butter: Salted vs. Unsalted & Regional Variations
I usually use unsalted butter so I can control the salt levels. However, a little salted butter adds a lovely richness. Some families in Punjab even use ghee for an extra decadent flavour!

Spices: Balancing Heat and Aroma
Don’t be afraid to adjust the green chillies to your liking. And remember, spices are best when fresh!

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, soak the 15 grams of cashew nuts in warm water for about 20 minutes. This softens them up for blending. Once soaked, drain and blend them into a super smooth paste – no grainy bits allowed! Set aside.
2. Cut the 200 grams of paneer into 1-inch cubes. Gently parboil them in salted water for 2-3 minutes. This keeps them soft and prevents them from crumbling in the gravy. Drain and set aside.
3. Melt 2 tablespoons of butter in a skillet over medium heat. Add the cinnamon stick and 2 green chillies. Let them sizzle for a moment, releasing their aroma.
4. Add 1 tablespoon of ginger paste and 1 tablespoon of garlic paste. Sauté for about 2 minutes, until fragrant. Don’t let it burn!
5. Now, add the 4 chopped ripe tomatoes, 1 teaspoon of sugar, and salt to taste. Cook, covered, for about 15 minutes, or until the tomatoes are completely mushy.
6. Remove from heat and let the tomato mixture cool slightly. Then, blend it into a smooth puree. This is the base of our flavour!
7. Heat the remaining 2 tablespoons of butter in the same skillet. Add 1 teaspoon of Kashmiri chilli powder and 0.5 teaspoon of coriander powder. Sauté for about 30 seconds, until fragrant.
8. Pour in the tomato puree and mix well with the spiced butter. Let it simmer for a couple of minutes.
9. Stir in the cashew paste and continue to simmer for another 5 minutes, stirring occasionally.
10. Add about ½ cup of water to adjust the gravy consistency. You want it to be thick and creamy, but not too heavy.
11. Crush 1 tablespoon of kasoori methi between your palms to release its aroma, and add it to the gravy.
12. Gently add the parboiled paneer cubes to the simmering gravy. Be careful not to break them!
13. Drizzle in 3 tablespoons of fresh cream and simmer for just 2 minutes.
14. Finally, taste and adjust the salt and sugar balance as needed. Everyone’s palate is different! Serve hot with naan, roti, or rice.

Expert Tips

• Don’t overcook the paneer! Parboiling is enough to keep it soft.
• A good quality tomato puree makes a huge difference.
• Simmering the gravy allows the flavours to meld together beautifully.

Variations

Vegan Paneer Butter Masala
Swap the paneer for firm or extra-firm tofu, and use a plant-based butter and cream alternative. It’s surprisingly delicious!

Gluten-Free Adaptation
This recipe is naturally gluten-free! Just ensure your spices are from a gluten-free source.

Spice Level Adjustment (Mild, Medium, Hot)
Reduce or omit the green chillies for a milder flavour. Add a pinch of cayenne pepper for extra heat.

Festival Adaptations (Diwali, Holi)
This dish is a staple during festivals! For Diwali, serve it with a side of jeera rice. During Holi, it’s a comforting treat after all the colour throwing.

Serving Suggestions

Serve your Paneer Butter Masala hot with:

• Naan bread (classic!)
• Roti or chapati
• Jeera rice (cumin rice)
• A side of raita (yogurt dip)

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 gravy may thicken upon refrigeration, so add a splash of water or cream when reheating.

FAQs

What type of paneer works best for Paneer Butter Masala?
A soft, non-rubbery paneer is ideal. If using store-bought, look for paneer packed in water.

Can I make this recipe without cashews? What’s a good substitute?
While cashews are key to the creamy texture, you can try using sunflower seeds or almonds (soaked and blended) as a substitute, though the flavour will be slightly different.

How can I adjust the sweetness in this dish?
Start with 1 teaspoon of sugar and adjust to your liking. Some people prefer a more savoury flavour, while others like a touch of sweetness.

What is Kashmiri chilli powder and why is it used?
Kashmiri chilli powder is known for its vibrant red colour and mild, fruity flavour. It adds colour without excessive heat.

How can I prevent the paneer from becoming rubbery?
Parboiling the paneer briefly and handling it gently will help keep it soft. Don’t overcook it in the gravy.

Can I make this gravy ahead of time?
Yes! You can make the gravy a day or two in advance and store it in the refrigerator. Add the paneer and cream just before serving.