Instant Pot Paneer Butter Masala

Name: Instant Pot Paneer Butter Masala
Prep time: 3 min
Cook time: 7 min
Total time: 10 min
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); 1 teaspoon Garam masala; 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

Jump to Recipe Pin Recipe

This restaurant-style Instant pot paneer butter masala is super easy to make. It takes only 10 minutes if you have onion tomato masala ready in your freezer.

Top view of paneer butter masala in a bowl with cilantro leaves.

❤️Why I Love This Recipe

It is super quick to make, just 10 mins (from start to finish that includes prep time, pressure building time, cook time everything)
It uses the pre-made frozen onion tomato masala. I always keep that handy so I can make many other dishes that call for onion tomato.
It is rich, creamy, butter and medium spicy.
You can make a big batch if guests are coming over.

🧾Ingredients

Paneer – It 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 the frozen section). I have seen it in many Costco locations.

Frozen onion tomato masala: to be efficient in the kitchen for everyday cooking, I make a 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.

Cashew nut paste: cashews are soaked in warm water for 5 minutes and then made a smooth paste in a 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 the USA, I always use organic valley heavy whipping cream. To make it lighter, you can use half and half or milk

🎥Watch The Recipe Video

[mv_video doNotAutoplayNorOptimizePlacement=”false” doNotOptimizePlacement=”true” jsonLd=”false” key=”hqmqxmpwnsrnfpsmfbeb” sticky=”false” thumbnail=”https://mediavine-res.cloudinary.com/v1557363796/yar09tjkmrlkqg85cgtr.jpg” title=”Instant Pot Paneer Butter Masala” volume=”70″]

👩‍🍳Step By Step Photo Instructions

1) Turn on the instant pot with saute mode. Add butter and let it melt. Then add whole spices and slit green chili, saute for 30-40 seconds.

2) Add frozen onion tomato masala.

3) Then add water, cashew paste, salt, red chili powder and paneer cubes.

4) Mix well. Cover with the lid and keep the vent to sealing. Cook on manual (high pressure) for 2 minutes. Then do QPR (quick pressure release). Once the pin drops open the lid.

5) Add crushed kasoori methi, garam masala, cardamom powder, nutmeg powder and heavy cream.

6) Mix everything well and garnish with chopped cilantro.

Collage of 6 steps showing adding whole spices in butter, adding frozen masala, adding paneer, mixed, adding cream and spices, garnished with cilantro

🍽 Serving Ideas

Serve instant pot paneer butter masala with garlic naan (or tandoori roti or lachha paratha).
It tastes good with simple basmati rice or jeera rice.
To make it a meal, I suggest serving Indian onion salad and salted lassi on the side.

FAQs

How to make this without onion tomato masala?

If you don’t have it ready then you have to make a small batch by following the same method. For this recipe, you’ll need ¾ cup of onion and 1-1.5 cups of tomato puree.

Can I make this on the stovetop?

If you have frozen masala ready, then follow the same method in a pan on the stovetop. Instead of pressure cooking, just simmer it covered till everything is heated and gravy comes together.
– If you do not have frozen masala then use this traditional method of making paneer butter masala.

Paneer butter masala in a bowl with garnish of cilantro, paratha and onion in the back in a tray

PS Tried this recipe? Please leave a star rating in the recipe card below and/or a review in the comment section. I always appreciate your feedback! Plus, Subscribe to my newsletter and follow along on Pinterest, Instagram, and Facebook for all the latest updates.