Easy-peasy restaurant-style paneer butter masala or paneer makhani recipe! This crowd-pleaser paneer butter masala is a nut-free and semi-homemade recipe, and you can even make it during busy weekdays.
My love for rasam is universal, and no secret, similarly, kiddo’s love for paneer is well-known in our friends and family circle and school. When they asked kiddo to write what he is thankful for during Thanksgiving, he wrote this “I am thankful for paneer for tasting so awesome.”
If you browse through my archives, you won’t find very many paneer recipes. I usually make them over weekdays and pack them for lunch or make it for dinner. I post them on my IG but keep missing to post here on the blog. And I hope to share all my paneer recipes here as well soon.
Being a South Indian, paneer is always an exotic dish for me. Only after coming to the US, I started making paneer dishes and also started making homemade paneer.
I learned all my paneer recipes from our friend E. During my first trimester, I was staying in their place for about a month. I was spoiled and pampered with hot parathas with chaas for breakfast and a typical North Indian meal for lunch (dal, roti, sabzi/paneer, and rice). Now you know how kiddo started loving paneer.
I haven’t shared all the recipes that I learned from her. It’s high time I need to start sharing more paneer recipes.
Ok, it looks like I have deviated a lot from the recipe topic. Let’s get back to it.
Paneer butter masala or paneer makhani
Paneer butter masala, aka paneer makhani, is a buttery tomato-based gravy with paneer. Some call it as paneer butter masala, and some call is as paneer makhani. It’s the same, but like every other recipe, every household has their version with subtle differences.
Party favorite paneer recipe-
Be it a potluck or party, paneer plays a significant role, and one paneer dish makes the entire menu so exotic. This paneer butter masala is one such recipe, and it’s effortless to make as well.
If you have a potluck night on a Friday or during the weekday at work, you will love my recipe as it’s semi-homemade and nut-free. Yes, I am using tomato puree, ginger-garlic paste, and heavy cream. Not much soaking or chopping involved. This quantity serves 8 to 10 people, making it perfect for a small get-together.
Why nut-free paneer butter masala-
Cashews play a significant role in this paneer gravy, and I have included cashews in my paneer makhani biryani as well. But for this recipe, I did not include any nuts.
When kiddo was in his preschool, they were a bit particular about nut-free lunch. So I started making this dish without cashew but with extra cream. My son loved it, and one time for a potluck, I made it similarly without nuts and extra cream, and it was a huge hit among kids and adults. I want to document that version here, so here I am sharing the same.
This paneer butter masala is super creamy with subtle sweetness, just like how you get in the restaurants. The tomato paste/puree and the heavy cream adds that magic touch.
PS – the amount of cream might be high, but the measure serves 8 to 10 and as always adjust the cream according to your preference. If you are using tomato paste instead of puree, please check the recipe notes.
Now without any further ado, let’s see how to make this semi-homemade paneer butter masala.
Chop and soak the paneer-
- Cut the paneer into shapes according to your preference. If it’s for a party or get-together, I prefer this triangle shape.
- Soak this paneer in hot water until the gravy is ready or for about 30 minutes. Soaking softens the paneer. If you are using homemade paneer and if it’s fresh, skip this step.
Prepare the tomato-onion paste-
- In a mixer jar, add the chopped onion, tomato, and the ginger-garlic paste as well. Blend it into a smooth paste. No need to add any water.
Prepare the paneer masala-
- Heat the pan or kadai and add the butter. Let it melt.
- When the butter melts, add the bay leaves and saute for 20 seconds or so. Then add the ground onion-tomato mix.
- Cook thoroughly until the raw smell goes off, and all the moisture is absorbed, as shown in the picture. This is an important step. Make sure you cook this paste until the moisture is absorbed. It usually takes about 8 to 10 minutes over medium heat.
- Now add the tomato puree and 1.5 cups of water. Mix well.
- Add the salt, sugar, red chili powder, and garam masala. Mix thoroughly.
- Cook for 5 minutes and add all the paneer. Gently mix.
- Then add the cream right away and mix thoroughly.
- Reduce the heat to low and let it simmer for 4 to 5 minutes.
- As the bubble starts to form, turn off the heat. Crush the fenugreek leaves and add it.
- Garnish with cilantro and serve with your favorite Indian flat-bread or rice.
Recipe Notes-
- This dish is very mild and doesn’t call for many spices. Red chili powder and garam masala or curry powder are sufficient. Adjust both according to your taste.
- Adjust the salt and sugar depending upon the sourness of the tomato. If you are using tomato paste, you might have to add little extra sugar. I feel tomato paste adds a little more tanginess.
- Instead of tomato puree, you can add tomato paste. You can use a 6 oz tomato paste can and mix it with 2 to 2.5 cups of water without any lumps and add it instead of tomato puree.
- I have added 1 tbsp of dried fenugreek. It balances all the sweetness that comes from the cream. You need a minimum of 1 tbsp, but you can add up to 2 tbsp or as per your taste.
- As we are not adding any nuts, we need all that cream. You can reduce it to half a cup, but I won’t recommend reducing it any further or for this measure at least.
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Other Paneer Recipes from my Archives-
- Paneer gravy with Italian sauce
- Paneer makhani biryani
- Yellow paneer curry
- Shahi paneer
- Ghee rice with paneer
- Palak paneer
Paneer Butter Masala
Equipment
- Kadai or Saucepan
Ingredients
- 1 lb paneer block
- 1.5 cup water plus hot water for soaking the paneer
To Grind-
- 1 medium-sized onion approx 130 grams chopped
- 1 tomato approx 120 grams, chopped
- 1 tbsp ginger-garlic paste
Other Ingredients-
- 1.5 tbsp butter
- 2 bay leaves dried ones
- 1 cup tomato puree
- 2 tsp salt or to taste
- 3/4 tsp red chili powder heaped or to taste
- 1 tsp sugar or to taste
- 1/4 tsp garam masala
- 1 cup heavy cream a half-pint pack
- 1 tbsp cilantro chopped
- 1 tbsp dried fenugreek leaves kasoori methi
Instructions
Chop and soak the paneer-
- Cut the paneer into shapes according to your preference. If it's for a party or get-together, I prefer this triangle shape.
- Soak this paneer in hot water until the gravy is ready or for about 30 minutes. Soaking softens the paneer. If you are using homemade paneer and if it's fresh, skip this step.
Prepare the tomato-onion paste-
- In a mixer jar, add the chopped onion, tomato, and the ginger-garlic paste as well. Blend it into a smooth paste. No need to add any water.
Prepare the paneer masala-
- Heat the pan or kadai and add the butter. Let it melt.
- When the butter melts, add the bay leaves and saute for 20 seconds or so. Then add the ground onion-tomato mix.
- Cook thoroughly until the raw smell goes off, and all the moisture is absorbed, as shown in the picture. This is an important step. Make sure you cook this paste until the moisture is absorbed. It usually takes about 8 to 10 minutes over medium heat.
- Now add the tomato puree and 1.5 cups of water. Mix well.
- Add the salt, sugar, red chili powder, and garam masala. Mix thoroughly.
- Cook for 5 minutes and add all the paneer. Gently mix.
- Then add the cream right away and mix thoroughly. Reduce the heat to low and let it simmer for 4 to 5 minutes. As the bubble starts to form, turn off the heat. Crush the fenugreek leaves and add it.
- Garnish with cilantro and serve with your favorite Indian flat-bread or rice.
Notes
- This dish is very mild and doesn't call for many spices. Red chili powder and garam masala or curry powder are sufficient. Adjust both according to your taste.
- Adjust the salt and sugar depending upon the sourness of the tomato. If you are using tomato paste, you might have to add little extra sugar. I feel tomato paste adds a little more tanginess.
- Instead of tomato puree, you can add tomato paste. You can use a 6 oz tomato paste can and mix it with 2 to 2.5 cups of water without any lumps and add it instead of tomato puree.
- I have added 1 tbsp of dried fenugreek. It balances all the sweetness that comes from the cream. You need a minimum of 1 tbsp, but you can add up to 2 tbsp or as per your taste.
- As we are not adding any nuts, we need all that cream. You can reduce it to half a cup, but I won't recommend reducing it any further or for this measure atleast.
Nutrition
I am not a nutritionist. The nutritional information is provided as a courtesy and is an estimate only. It varies depending upon the product types or brands.
Update Notes: First posted in 2016. Updated the recipe with new pics, and recipe cards in 2020.
