Name: Instant Pot Butter Paneer Masala Recipe + Video
Prep time: 3 min
Cook time: 7 min
Total time: 10 min
Yield: 3 servings
Ingredients: 2 tablespoons Butter; 3 Cloves; 2 Green cardamoms; 1 Bay leaf; 1 inch Cinnamon stick; 1 Green chili (slit); ¾ cup Onion tomato masala ((fresh or frozen) smooth version); 1 cup Water; ½ teaspoon Kashmiri red chili powder; Salt (to taste); 8-10 Cashew nuts (Soaked in ¼ cup water for few minutes and ground into paste); 7 oz or 200 grams Paneer (cut into cubes); 1 teaspoon Kasoori methi (Dried fenugreek leaves) (crush between palm before adding); ¼ teaspoon Cardamom powder; ⅛ teaspoon Nutmeg (freshly grated or ground); ¼ cup Heavy whipping cream or fresh cream or malai; 1 tablespoons Cilantro or coriander leaves

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5 from 1 vote

10 MINUTES, super easy, restaurant style butter paneer recipe made in instant pot. Try this paneer butter masala recipe and trust me, you won’t believe that it is homemade.

Why make this butter paneer in Instant pot?

I have already shared the stove top method of making paneer butter masala. That is little lengthy process. In that I have saute the onion, tomato, cashews first and ground into paste. Then again this paste is sauteed till becomes thick and lastly paneer cubes are simmered in the gravy.

So there are many steps if made on stove top. But when we make this butter paneer in instant pot, it requires just 10 minutes (from start to finish) if you have onion tomato masala ready.

Yes you heard it right. This 10 minutes include prep time, pressure building time, cook time everything. Isn’t that great?

From many months I have been using my instant pot almost everyday.

You can check out other instant pot recipes
Instant pot chana masala
Instant pot matar paneer
Instant pot dal makhani
Instant pot dal fry
Instant pot veg noodles

Instant Pot Butter Paneer Recipe Rundown:

Taste & Texture: Mildly spiced, creamy, rich, buttery.
Pros: Quick to make even if making big batch for guests coming over, can be made vegan (see option below)
Cons: full of calorie, heavy on stomach, not advisable to consume on daily basis.

Ingredients for instant pot paneer butter masala:

Paneer is the main and star ingredient for this dish. You can make fresh paneer at home. It is very easy to make. Or buy the store bought one. It is available in any Indian grocery store (in frozen section). I have seen it in many Costco locations.

Frozen onion tomato masala: to be efficient in kitchen for everyday cooking, I make big batch of onion tomato masala in instant pot and freeze them in portions. So I can make any indian dish in no time that calls for sauteing onion, tomato, ginger, garlic at the beginning e.g. instant pot dalia pulao, instant pot lauki kofta, instant pot spinach dal, instant pot green moong dal. Here I have used this OTM and made the entire dish in 10 minutes only (from start to finish).

Cashew nut paste: cashews are soaked in warm water for 5 minutes and then made a smooth paste in grinder.

Heavy whipping cream: Traditionally the malai is used which has high fat content compared to heavy whipping cream. But malai is not available here in USA, I always use organic valley heavy whipping cream. To make it lighter, you can use half and half or milk.

How to make Vegan Butter Paneer?

Yes, don’t be shy on making it vegan. Trust me it will still taste good.

Use firm tofu instead of paneer.
Use vegan butter (margarine) or oil instead of butter.
Skip heavy whipping cream and increase the amount of cashew paste.
Do not substitute the cream with coconut cream. It will change the taste entirely.

So now we have made it vegan paneer butter masala, it won’t be that heavy. And this can be made and eaten on regular basis.

Serving suggestion for Butter Paneer:

This instant pot paneer butter masala can be served with naan, garlic naan, tandoori roti or lachha paratha. Make at home or buy a big bag of naan bread from costco.
This tastes good with plain basmati rice or jeera rice or peas pulao.
To enjoy the complete meal, I would suggest to serve sliced onions (w/ lemon wedges) and salted lassi on side.

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5 from 1 vote