How to make South Indian style paneer butter masala?

For this paneer butter masala recipe, onions, tomatoes, cashews, milk, and butter are used to create the creamy base of the curry. It tastes mildly sweet and goes well with garlic naan or jeera rice.

There are different ways to prepare it. When you cook it with green peas, it becomes matar paneer, and when you cook it with spinach, it becomes palak paneer.


We begin by cooking the tomatoes, onion, cashews, ginger, and garlic for this paneer butter masala recipe, this is the sauce’s base. After the components have been boiled and blended, the remaining ingredients (including paneer) are added to the meal.

When cooking paneer butter masala or paneer makhani, many people use tomatoes. The addition of white/sweet onions to the curry adds a layer of flavor, but the curry will taste just as delicious with just the tomatoes.

For the gravy, nuts can be used

In the recipe, it thickens and creams the sauce, necessitating the addition of nuts. Almonds and cashews, both, work well, you can use either or a combination of the two. It is recommended not to use more nuts than the recipe calls for or else the final curry will be really thick. 250 grams of paneer can use about 10-15 cashews.

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Use a small number of spices

This dish doesn’t require too many spices. It only takes a small amount of cardamom powder and garam masala. Add a pinch of Kashmiri red chili powder to get that vibrant red color and chili powder for the spice element. Fresh tomatoes, ginger, cashews, garlic, cream, and butter all contribute to the flavor of this dish!

It’s much better with handmade paneer

It’s not always possible to make paneer at home, but it is a healthier and better option to use paneer made at home. It truly does make a difference. Some use store-purchased paneer for this dish, but those that make it using handmade paneer can really tell the difference.

Add sugar: It balances the flavors while giving it a mild sweetness.

Authentic paneer butter masala has a slight sweetness to it, which you can get by adding sugar and cream. Don’t use too much sugar, maybe about a teaspoon, but it helps to balance the acidity of the tomatoes and flavors of the spices in the dish.

A tip you can follow if you have store-bought paneer; soak it in boiling water for 20 minutes and then proceed to use it. It has a significant impact. Avoid overcooking your paneer because it can turn out to be chewy and rubbery. This paneer butter masala recipe can be explained in 12 easy steps. They are


  1. In a vessel or pan, pour and heat a teaspoon of oil. Add the cinnamon stick, bay leaf,  and cloves to the heated oil and cook for less than a minute. The onion goes in next followed by the garlic, and ginger, and cook for another 2 minutes or a little bit more till the onion becomes transparent.
  2. Mix in the cashews and tomatoes.
  3. Later, pour in the water; 1 cup.
  4. Close the pan and simmer for another 15 minutes on medium heat.
  5. After that take away the pan from the heat. Then the cloves, cinnamon stick, and bay leaf should all be removed.
  6. Allow the mixture to cool somewhat before transferring to a mixie. The mixture needs to be set aside until it has cooled down or else the heat will cause the mixture to blow up while getting blended.
  7. Make a creamy paste and leave it aside.
  8. On medium heat, add 2 tablespoons of butter and the remaining 1 teaspoon of oil to the same pan.
  9. Add the Kashmiri red chili powder and the red chili powder to the melted butter and cook for a few seconds. The curry will turn a lovely red hue as a result of this.
  10. Then, combine the blended creamy paste and garam masala (start by adding half a teaspoon of garam masala and add the spare quarter teaspoon only if you think the curry requires it towards the end) into the pan along with tomato paste, sugar, cardamom powder and salt to taste.
  11. Cook for a minute or two after thoroughly mixing. Then, stir in the cream.
  12. Cook for 2 to 3 minutes on medium heat after adding the paneer. Finally, add the Kasturi methi, which has been crushed.

Serve paneer butter masala with naan or rice, garnished with cilantro.

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