Paneer Butter Masala Recipe (Restaurant style)

Paneer Butter Masala Recipe – This is a restaurant style paneer recipe. Soft paneer cubes are simmered in creamy, buttery, spicy and vibrant looking onion-tomato gravy.

This Paneer Butter Masala Gravy is rich and creamy. This comes from the addition of heavy cream or malai. The gravy is made from onion, tomato and cashews with some spices.

To get the bright red color just like the outside one, I have added kashmiri chili powder. Yes it is not spicy so you can add little more which gives the natural color. So no food color is added here.

Recreating popular restaurant style Punjabi dishes at home is my second obsession after eggless baking. Other than this I have already shared palak paneer, kadai paneer, dum aloo, khoya kaju, paneer lababdar, veg handi and so on. I will keep sharing rest till I make all of them. Before making this kind of dishes I refer cookbooks, Sanjeevji’s and Tarlaji’s website and I come up with the recipe or ingredients proportion which suits my taste. I do make couple of time, after making required changes I share it here. And trust me all of them tastes fantastic and delicious.

This is hubby’s most second favorite curry recipe after the kaju butter masala.

Few months back my parents were here and I made this with paratha. They just loved it. Dad was saying that it is much better than restaurant one. First time he tried my food, he was like you are the same Kanan or someone else who was in India. Yes I never cooked a single dish before marriage.

Try it once, I am sure you will also fall in love with this paneer butter masala just like my family.

Check out other paneer recipes
Paneer pulao  //  Paneer paratha  //  Paneer pav bhaji  //  Paneer tikka tandoori

How to make paneer butter masala recipe (Step by Step Photos):

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1) Heat 2 teaspoons of oil in a pan on medium heat. Once hot add chopped onions, sprinkle some salt to speed up the process. Cook till onions are translucent and light brown in color.

2) Add cashew nuts and saute for 2 minutes or till it is roasted and browned.

3) Add chopped tomatoes and mix well.

4) Cook till tomatoes are soft.

5) Add turmeric powder, coriander powder and red chili powder.

6) Mix well and cook for a minute. Turn off the stove, let it cool down a bit and make smooth paste into blender or grinder.

7) Now wipe out the pan using paper napkin to clean it. In the same pan heat the butter and oil on medium heat.

8) Add whole spices (cinnamon, cloves, cardamom and bay leaf). Saute for a minute or till you get nice aroma of spices.

9) Add ginger and garlic paste.

10) Cook for a minute or till the raw smell goes away.

11) Add prepared onion-tomato paste and add remaining salt.

12) Cook till all the moisture evaporates and it becomes like a thick paste. Do stir to make sure that it is not sticking to the bottom of the pan.

13) Add kashmiri red chili powder for color and green cardamom powder. In photo it looks a lot, but trust me kashmiri chili powder is not spicy at all and it gives nice red color.

14) Mix well and cook for a minute.

15) Then add water to make gravy consistency.

16) Let it come to a boil and simmer for 3-4 minutes on low-medium heat.

17) Add kasoori methi. Do crush between your palm before adding, so it releases its flavor. Stir well.

18) Add paneer cubes and mix gently.

19) Lastly add cream.

20) Stir and let it simmer for 2 minutes, so paneer gets heat up.

Paneer butter masala is ready to serve. Garnish it with coriander leaves. The look and taste of the dish is same as restaurant one.

Serving suggestion: This paneer butter masala can be served with naan, paratha, tandoori roti or jeera rice. Serve some onion slices w/ lemon wedges on side. As it is spicy curry, it is good idea to serve chaas or salted lassi on side to soothe your palate.

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5 from 10 votes

Paneer butter masala recipe, Restaurant style

US measuring cups are used (1 cup = 240 ml)

Course Main Course

Cuisine North Indian

Prep Time 15 minutes

Cook Time 20 minutes

Total Time 35 minutes

Servings 2 -3 Servings

Author Kanan

Ingredients

To saute and grind into gravy:

• 2 teaspoons Oil
• 1 medium or 1 cup Onion chopped roughly
• 2 tablespoons Cashew nuts broken
• 2 small or 1 cup Tomato chopped
• ⅛ teaspoon Turmeric powder
• 1 ½ teaspoons Coriander powder
• 1 ½ teaspoons Red chili powder
• Salt to taste

For paneer butter masala recipe:

• 2 tablespoons Butter
• 1 tablespoon Oil
• 2 Cloves
• 1 Green cardamoms
• ½ inch Cinnamon stick
• 1 Bay leaf
• 1 teaspoon Ginger paste or freshly grated or crushed
• 1 teaspoon Garlic paste or freshly grated
• ¼ teaspoon Green cardamom seeds powder
• 2 to 3 teaspoons kashmiri red chili powder
• 1 cup Water
• 200 grams or 7 oz Paneer cut into pieces
• 1 teaspoon Kasoori methi (dried fenugreek leaves) crushed
• 3-4 tablespoons Heavy whipping cream or fresh cream or malai

Instructions

First make paste:

• Heat 2 teaspoons of oil in a pan on medium heat. Once hot add chopped onions, sprinkle some salt. Cook till onions are soft and translucent.
• Add cashew nuts and saute for 2 minutes.
• Mix in chopped tomatoes and cook till they are soft.
• Add turmeric powder, coriander powder and red chili powder. Mix well and cook for a minute.
• Turn off the stove, let it cool down a bit and make smooth paste into blender or grinder.

Making paneer butter masala recipe:

• Now wipe out the pan using paper napkin to clean it. In the same pan heat the butter and oil on medium heat.
• Add whole spices. Saute for a minute or till you get nice aroma of spices.
• Next saute ginger and garlic paste for a minute or till the raw smell goes away.
• Now add prepared onion-tomato paste and add remaining salt. Cook till all the moisture evaporates and it becomes like a thick paste. Do stir to make sure that it is not sticking to the bottom of the pan.
• Add kashmiri red chili powder for color and green cardamom powder. Mix well and cook for a minute.
• Then add water to make gravy consistency.
• Let it come to a boil and simmer for 3-4 minutes on low-medium heat.
• Add kasoori methi.
• Add paneer cubes and mix gently.
• Lastly add cream. Stir and let it simmer for 2 minutes.
• Turn off the stove.

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