How to Make Paneer Butter Masala, Step by Step

Ingredients

• 2 teaspoons (10 ml), dividedflavourless oil, such as avocado oil
• 1bay leaf
• ½ inchcinnamon stick
• 3–4whole cloves
• 6–7 large (25 g), roughly choppedgarlic cloves
• 1½ inches (15 g), roughly choppedginger
• 1 large (180 g), roughly choppedwhite onion
• 3–4 medium (460 g), roughly choppedtomatoes
• 10–15raw whole cashews
• 240 ml (1 cup; 8 fl oz)water
• 2 tablespoonsunsalted butter
• ½ teaspoonred chilli powder
• ½ teaspoonKashmiri red chilli powder
• ½ teaspoon, plus ¼ teaspoon if neededgaram masala
• ¼ teaspooncardamom powder
• 1 teaspoonsugar
• ¾ teaspoon, or to tastesalt
• ½–1 tablespoon, optionaltomato paste
• 3–4 tablespoons (45–60 ml)cream
• 250 g, cut into cubespaneer
• 2 teaspoons, crushedkasuri methi (dried fenugreek leaves)
• To garnishchopped coriander

Instructions

1. 1

   Fry the whole spices

   Heat 1 teaspoon of the oil in a pan over medium heat. When it is hot, add the bay leaf, cinnamon stick and cloves; sauté for a few seconds.

2. 2

   Soften the onion

   Add the garlic, ginger and roughly chopped onion. Sauté for 2–3 minutes, until the onion is translucent.

3. 3

   Cook the tomatoes

   Stir in the tomatoes and cashews, then add 240 ml (1 cup) water. Cover the pan and cook over medium heat for 15 minutes.

4. 4

   Blend the masala

   Take the pan off the heat and remove the bay leaf, cinnamon stick and cloves. Let the mixture cool slightly before transferring it to a blender; blending it while very hot can cause it to splatter. Blend to a smooth paste and set aside.

5. 5

   Heat the butter

   Return the same pan to medium heat and add the butter with the remaining 1 teaspoon of oil.

6. 6

   Fry the chilli

   Once the butter has melted, add the red chilli powder and Kashmiri red chilli powder. Fry for a few seconds to colour the sauce.

7. 7

   Season the sauce

   Return the blended paste to the pan. Add ½ teaspoon garam masala, cardamom powder, sugar, salt and the tomato paste if using. Mix well and cook for 1–2 minutes. Taste the curry at the end and add the remaining ¼ teaspoon garam masala only if you think it needs it.

8. 8

   Stir in the cream

   Add 3–4 tablespoons of cream and mix it into the sauce.

9. 9

   Add paneer

   Add the paneer cubes and cook over medium heat for 2–3 minutes. Finish by stirring in the crushed kasuri methi.

10. 10

    Garnish and serve

    Garnish with chopped coriander if you like. Serve hot with naan or rice.

What is paneer butter masala?

Paneer butter masala is a North Indian-style curry served in homes and restaurants, made with paneer in a smooth, spiced tomato sauce. The name reflects its buttery, gently creamy character rather than a dry or sharply spiced preparation.

Here, onion, tomatoes and cashews are cooked together and blended, creating the sauce base before butter, spices and cream are added. That sequence gives the curry a smooth texture and lets the paneer remain the centrepiece.

Nutrition and macros by portion

The nutrition label shows one serving as written: 365 calories, 11g protein, 15g carbs, 29g fat.

The main carbohydrates come from the tomatoes, onion, cashews and the small amount of sugar; the paneer and cashews contribute protein, while butter, cream and paneer provide much of the fat. Serve a moderate portion with rice or naan and a vegetable side to round out the plate.

Building the sauce base

Whole spices: the bay leaf, cinnamon and cloves flavour the oil as the first step. They are removed before blending, so the finished curry has their aroma without their woody pieces.

Tomatoes and cashews: simmering them with the onion, garlic, ginger and water softens everything for blending. Cashews contribute body to the sauce, while the tomatoes bring its main tangy flavour.

Blending safely

Cooling: let the cooked mixture cool a little before putting it in the blender. Hot contents can expand and splatter, so avoid filling the blender with the mixture while it is piping hot.

Smoothness: blend the masala until no sizeable pieces remain, then return it to the pan. A smooth base helps the cream and spices combine evenly.

Balancing the spices

Chilli powders: both are briefly fried in the melted butter and oil before the sauce goes back in. Kashmiri chilli powder is commonly used for colour, while the red chilli powder adds its own heat.

Garam masala: start with ½ teaspoon as directed, then taste the curry before deciding whether to add the remaining ¼ teaspoon. This keeps the final spice level adjustable.

Getting the texture right

Cream: stir it into the blended sauce before adding the paneer. This makes the curry richer and softens the tomato-led flavour.

Paneer: simmer the cubes for just 2–3 minutes over medium heat, as specified, then finish with crushed kasuri methi. The short cooking time warms the paneer without making it the focus of a long simmer.

Timing the stages

The sauce base needs 15 minutes covered on the hob, followed by a little time to cool before blending. Allow for that cooling pause when planning the recipe's 40-minute total.

Once the sauce is blended, the remaining cooking is brief: season it for 1–2 minutes, add the cream, then cook the paneer for 2–3 minutes.

What to serve with it

Naan is useful for scooping up the creamy sauce, while rice makes a simple base alongside the paneer. Serve the curry hot and add chopped coriander for a fresh garnish if you like.

For a more balanced plate, pair a moderate serving of curry with rice or naan and add a vegetable side. Keep in mind that the sauce already contains butter, cream and cashews.

Recipe notes & tips

• Roughly chop the onion, tomatoes, garlic and ginger before you begin so they are ready to add.
• Remove the bay leaf, cinnamon stick and cloves before blending the cooked masala.
• Let the masala cool slightly before blending to reduce the risk of hot sauce splattering.
• Add the optional tomato paste with the seasonings, then cook the sauce for 1–2 minutes.
• Taste before adding the extra ¼ teaspoon of garam masala.
• Crush the kasuri methi before stirring it into the curry so it is ready to finish the dish.

Variations

• Adjust the heat: use less red chilli powder for a milder curry.
• Skip the tomato paste: leave it out if you do not have it to hand.
• Change the garnish: omit the chopped coriander if you prefer.
• Choose your side: serve with naan or rice as suggested.
• Tune the garam masala: add the optional ¼ teaspoon after tasting the sauce.

Common mistakes to avoid

• Blending the sauce piping hot: let it cool slightly first to reduce splattering.
• Leaving whole spices in the blender: remove the bay leaf, cinnamon stick and cloves before blending.
• Adding all the garam masala automatically: start with ½ teaspoon and taste before using the extra ¼ teaspoon.
• Overcooking the paneer: stick to the stated 2–3 minutes over medium heat.
• Skipping the sauce simmer: cover and cook the tomato mixture for the full 15 minutes before blending.

How to store

Cool leftovers and refrigerate them in a covered container, then use within 3 days. Reheat gently in a pan until hot, stirring carefully; if the sauce has thickened, loosen it with a small splash of water.

Frequently asked questions