In a saucepan, add roughly chopped ripe tomatoes, ginger, garlic, green chili, cashews, Kashmiri red chili powder, and water.
Mix and bring it to a simmer over medium heat. Let it simmer uncovered for 10 minutes, until the tomatoes are soft and mushy.👉 Alternate methods: Pressure cook for 2 whistles or use Instant Pot for 3 minutes (manual) with quick pressure release (QPR).
Allow this mixture to cool slightly before blending. Don’t blend while hot. Transfer to a blender and make a smooth puree.
Make Paneer Makhani Recipe:
In a kadai or pan, heat butter on medium heat until melted.
Add the prepared tomato-cashew puree. Mix well.
Let it simmer and reduce until thick—most of the water should evaporate.👉 Tip: The gravy may splutter, so keep the pan partially covered and stir occasionally to avoid sticking.
Add salt, more Kashmiri chili powder (for color), coriander powder, and sugar. Mix and cook for a minute.
Add some water to thin out the gravy slightly and simmer for another 5 minutes.
Add paneer cubes, garam masala, and crushed kasoori methi (rub between palms before adding). Mix gently. Let the curry come to a gentle boil—this helps the flavors come together.
Finally, stir in the heavy cream and mix well. As soon as the gravy starts to boil again, turn off the heat.
Video
Notes
Don’t simmer too long after adding paneer or cream, or the paneer may turn chewy and rubbery.
Adjust sugar based on how tangy your tomatoes are—less sour tomatoes need less sugar.
Kashmiri chili powder is added just for the color. In the absence of it, you can use half amount of regular chili powder.