Paneer Butter Masala Recipe – Kashmiri Chili & Cashew Creamy Curry

Last Updated on 5 months ago by Neha Deshmukh

Paneer Butter Masala Recipe – Kashmiri Chili & Cashew Creamy Curry

Hello friends! If you’re anything like me, a cozy night in often calls for a rich, creamy, and utterly delicious curry. And honestly, nothing hits the spot quite like a perfectly made Paneer Butter Masala. I first made this for a family gathering, and it was an instant hit – everyone raved about the silky smooth sauce and the melt-in-your-mouth paneer. Today, I’m sharing my go-to recipe with you, complete with all my little secrets for achieving restaurant-quality results at home!

Why You’ll Love This Recipe

This isn’t just another Paneer Butter Masala recipe. We’re building layers of flavour here, using Kashmiri chili for a beautiful colour and gentle warmth, cashews for incredible richness, and a touch of kasoori methi for that authentic, comforting aroma. It’s a little bit of effort, but trust me, the payoff is HUGE. You’ll be rewarded with a curry that’s both vibrant and deeply satisfying. Plus, it’s surprisingly versatile – I’ll share some fun variations later on!

Ingredients

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

• 1 teaspoon butter
• 1 tablespoon oil
• ½ – 1 teaspoon cumin seeds
• 1 teaspoon ginger-garlic paste
• 3 medium onions
• 6 ripe tomatoes
• 15-20 cashewnuts
• 3 green chillies (adjust to your spice preference!)
• Salt to taste
• 1-2 teaspoons Kashmiri red chilli powder
• ½ teaspoon turmeric powder
• 1 teaspoon butter
• 1 tablespoon oil
• 1-2 teaspoons Kashmiri red chilli powder
• 1 teaspoon sugar
• 1 teaspoon roasted coriander seeds powder
• ½ – 1 teaspoon garam masala powder
• 200 grams paneer cubes
• 3 tablespoons chopped coriander leaves
• 1 teaspoon crushed kasoori methi
• 3 tablespoons cream

Ingredient Notes

Let’s talk ingredients! A few things can really elevate this dish:

• Kashmiri Red Chili Powder: This is key for that gorgeous red colour and a mild, fruity heat. Don’t skip it! It’s different from regular chili powder.
• Cashew Nuts: These are what give the gravy its luxurious, creamy texture. Soaking them in warm water for 15-20 minutes before blending will help create an even smoother puree.
• Kasoori Methi (Dried Fenugreek Leaves): This adds a unique, slightly bitter aroma that’s essential to authentic Indian flavours. Don’t be shy with it!
• Spice Blends: Every family has their own little tweaks to spice blends. Feel free to adjust the coriander and garam masala to your liking. Some people also add a pinch of cardamom or cloves for extra warmth.
• Tomatoes: Ripe, juicy tomatoes are best. If you’re using canned, opt for whole peeled tomatoes and crush them yourself for better flavour.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, heat the butter and oil in a pan over medium heat. Once hot, add the cumin seeds and let them crackle – this releases their flavour.
2. Add the ginger-garlic paste and sauté for a minute or so, until fragrant. You should really be able to smell it!
3. Now, add the onions, tomatoes, cashews, and green chillies. Season with salt, Kashmiri red chilli powder, and turmeric powder. Cook this mixture until the onions are softened and the tomatoes have broken down – about 10-15 minutes.
4. Let the mixture cool slightly, then transfer it to a blender. Add a splash of water (about ¼ cup) and blend until you have a super smooth puree. This is where the magic happens!
5. In a separate pan, heat the butter and oil. Add the Kashmiri red chilli powder and sauté briefly – be careful not to burn it!
6. Pour in the tomato-cashew puree. Add salt, sugar, coriander powder, and garam masala. Bring to a simmer and cook until the oil starts to separate from the sides – this means the gravy is ready. It will take about 8-10 minutes.
7. Gently stir in the paneer cubes, coriander leaves, crushed kasoori methi, and cream. Simmer for just 2-3 minutes, allowing the paneer to absorb the flavours. Don’t overcook, or the paneer can become rubbery.
8. Serve hot with naan or roti. And enjoy!

Expert Tips

• Don’t skip the browning: Properly sautéing the onions and spices is crucial for developing a deep, complex flavour.
• Low and slow: Simmering the gravy allows the flavours to meld together beautifully.
• Gentle with the paneer: Handle the paneer gently to prevent it from breaking apart.

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 alternative.
• Gluten-Free Adaptations: This recipe is naturally gluten-free! Just double-check the garam masala blend to ensure it doesn’t contain any hidden gluten.
• Spice Level Adjustments: For a milder flavour, reduce the amount of green chillies and Kashmiri red chilli powder. For a spicier kick, add a pinch of cayenne pepper. My friend, Priya, loves to add a finely chopped Serrano pepper for extra heat!
• Festival Adaptations: During Diwali or Eid, I sometimes add a sprinkle of chopped nuts (almonds and pistachios) for a festive touch.

Serving Suggestions

Paneer Butter Masala is fantastic with:

• Naan bread (obviously!)
• Roti or chapati
• Steamed 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 you might need to add a splash of water or cream when reheating.

FAQs

1. What type of paneer is best for Paneer Butter Masala?

Fresh, soft paneer is ideal. If you can’t find fresh paneer, frozen paneer works well too – just thaw it completely before using.

2. Can I make the gravy ahead of time? How long will it keep?

Yes! You can make the gravy up to 2 days in advance. Store it in an airtight container in the refrigerator.

3. How can I adjust the sweetness in this recipe?

Start with 1 teaspoon of sugar and adjust to your taste. Some people prefer a slightly sweeter gravy, while others prefer it more savoury.

4. What is the best way to prevent the paneer from becoming rubbery?

Don’t overcook the paneer! Add it to the gravy during the last 2-3 minutes of cooking.

5. Can I use tomato puree instead of fresh tomatoes?

Yes, you can. Use about 400g (14oz) of tomato puree.

6. What side dishes complement Paneer Butter Masala perfectly?

Raita, a simple salad, and steamed rice are all excellent choices.

Enjoy making this delicious Paneer Butter Masala! I hope it becomes a favourite in your home, just like it is in mine. Let me know in the comments how it turns out!