Paneer Butter Masala is one of the most loved vegetarian dishes in Indian cuisine — a creamy, mildly spiced, and buttery curry made with tender paneer cubes simmered in a luscious tomato-based gravy. It’s the perfect dish to serve at festive occasions, special dinners, or whenever you want to treat yourself and your family to a restaurant-style meal at home.
Originating from North India, Paneer Butter Masala is closely related to the famous Butter Chicken, with the obvious vegetarian twist — replacing chicken with soft cubes of paneer (Indian cottage cheese). The dish became a favorite in the late 20th century as more vegetarian diners wanted the same creamy, tangy, and buttery gravy experience.
Rich, creamy, and brimming with flavor, Paneer Butter Masala holds a cherished place in Indian cuisine and hearts alike. This dish exemplifies the perfect balance of indulgence and tradition, making it a staple on festive tables, celebratory feasts, and restaurant menus across the country and around the world. At the heart of this North Indian delicacy lies paneer, the beloved Indian cottage cheese, gently simmered in a luxurious tomato-based gravy infused with aromatic spices and enriched with cream and butter.
The origin of Paneer Butter Masala is often traced to Punjabi kitchens, where rich gravies and dairy-based ingredients are core to the culinary tradition. The dish emerged as a refined yet comforting way to showcase paneer, blending Mughlai influences with homestyle warmth.
What sets it apart from other paneer dishes is its mellow, buttery taste contrasted by the subtle heat of Indian spices—making it an ideal choice for both spice lovers and those who prefer mild curries. The cooking process begins with a medley of ripe tomatoes, onions, ginger, and garlic that are sautéed, blended, and cooked down into a smooth gravy base. Cashews are often added for body and natural sweetness, while garam masala, Kashmiri red chili powder, and fenugreek leaves (kasuri methi) give the sauce its characteristic aroma and flavor complexity.
Finally, fresh cream and a generous dollop of butter bring everything together, transforming the curry into a velvety masterpiece. The paneer cubes are either lightly pan-fried or added raw, allowing them to absorb the essence of the gravy while maintaining their soft, delicate texture. Paneer Butter Masala is not just about taste—its vibrant orange hue, rich consistency, and inviting fragrance make it a visual and sensory delight.
It pairs effortlessly with Indian breads like naan, roti, or paratha and is equally delicious with jeera rice or plain steamed basmati. Its versatility makes it a go-to dish for vegetarians during special occasions, family dinners, or even casual weekday meals. More than just a recipe, Paneer Butter Masala represents hospitality, celebration, and comfort—it’s the kind of dish that turns an ordinary meal into a memorable one.
Whether you’re hosting guests, craving something indulgent, or looking to recreate your favorite restaurant-style experience at home, this dish delivers on all fronts. The ingredients are simple and pantry-friendly, yet the outcome feels lavish and restaurant-worthy. In recent years, Paneer Butter Masala has also found fans internationally, with Indian restaurants abroad featuring it prominently to introduce new diners to the flavors of India. Its mild, creamy profile and vegetarian appeal make it a universally loved option.
Even within India, regional adaptations exist—some add honey or jaggery for sweetness, others emphasize the tang of tomatoes or the richness of cream—but the soul of the dish remains intact: comforting, balanced, and utterly delicious. In many ways, Paneer Butter Masala is a perfect gateway to Indian cooking. It demonstrates the country’s knack for layering spices, textures, and aromas into a harmonious whole. For anyone exploring Indian vegetarian cuisine, it serves as a benchmark—offering both depth and accessibility.
Whether prepared traditionally or with quick modern tweaks, the essence of Paneer Butter Masala never fails to evoke warmth and satisfaction. It’s not just food; it’s a reminder of the richness of Indian culinary heritage and the comfort of homemade meals. As you stir the creamy sauce, watch the butter melt into the spices, and let the aroma fill your kitchen, you’ll understand why Paneer Butter Masala remains one of the most iconic dishes in Indian cuisine.
In this article, we’ll guide you through how to make an authentic yet easy Paneer Butter Masala at home, using simple ingredients and a method that gives you those irresistible restaurant-style results.
What is Paneer Butter Masala?
Paneer Butter Masala is a rich, creamy curry made by simmering paneer cubes in a buttery tomato-onion gravy, finished with fresh cream and a hint of spices. It’s known for its bright orange color, smooth texture, and balanced flavors — mildly sweet, slightly tangy, and very comforting.
The key to a great Paneer Butter Masala is its silky gravy, which comes from pureed tomatoes, onions, cashews, and generous amounts of butter and cream. Unlike spicy curries, this dish keeps the spices mild, making it perfect for all palates.
Paneer Butter Masala is one of the most iconic and indulgent vegetarian dishes in Indian cuisine, celebrated for its rich, velvety texture and aromatic, mildly spiced flavor. At its core, this dish features paneer—fresh Indian cottage cheese—enveloped in a smooth, tomato-based gravy enriched with butter, cream, and a blend of fragrant spices.
It originated in North India, particularly within Punjabi cuisine, where dairy-based gravies are deeply rooted in culinary tradition. Over the years, Paneer Butter Masala has become a beloved classic not only across India but also globally, often serving as the go-to choice for vegetarians at restaurants and festive gatherings.
The word “paneer” refers to the soft, non-melting cheese that absorbs flavors well, while “butter masala” hints at the luxurious richness of the dish, which comes from generous use of butter and cream, giving the sauce a luscious, almost silken finish.
Unlike spicier gravies, this one strikes a subtle balance—delicate heat from Kashmiri chili powder, sweetness from tomatoes and cashews, and earthy depth from garam masala and fenugreek leaves. The preparation involves cooking onions, tomatoes, garlic, and ginger until soft, then pureeing the mixture to create a smooth, lump-free base.
The gravy is then simmered with spices and finished with cream and butter, which round out the flavors and give the dish its signature shine. Paneer cubes are added towards the end to soak in the rich sauce without breaking apart. One of the key characteristics that set Paneer Butter Masala apart is its visual appeal—the vibrant reddish-orange color from tomatoes and chili powder combined with the glossy sheen of butter and cream makes it as inviting to look at as it is to eat.
The dish pairs exceptionally well with Indian breads such as naan, roti, or paratha, as well as fragrant rice varieties like basmati or jeera rice. Paneer Butter Masala is often associated with celebrations and special occasions due to its richness, though it’s also made at home for weekend meals and family dinners. It caters to a broad audience since it’s vegetarian and generally mild in spice, making it a great introduction to Indian flavors for those new to the cuisine.
Across regions, you may find slight variations—some recipes lean sweeter, others tangier, and some use whole spices instead of powdered ones—but the essence of the dish remains constant: creamy, comforting, and deeply flavorful. It is also a popular choice in Indian restaurants worldwide, offering an approachable yet authentic taste of Indian culinary excellence.
The beauty of Paneer Butter Masala lies not just in its flavor, but in its ability to evoke warmth, indulgence, and satisfaction in every bite. Whether you’re preparing it from scratch at home or enjoying it at a restaurant, it consistently delivers a rich, hearty experience that highlights the depth and elegance of Indian cooking.
Paneer Butter Masala pairs beautifully with naan, tandoori roti, paratha, or a bowl of fragrant jeera rice.
Ingredients You’ll Need
Here’s the full list of ingredients for making this creamy dish. Serves about 4–5 people.
For the Paneer:
- 250–300 grams paneer (cottage cheese) – cut into cubes
- 1 teaspoon oil or butter (for lightly frying, optional)
For the Gravy:
- 2 tablespoons butter (unsalted or salted)
- 1 tablespoon oil
- 2 medium onions, chopped
- 3–4 medium tomatoes, chopped (or about 1.5 cups tomato puree)
- 12–15 cashews
- 1.5 teaspoons ginger-garlic paste
- 1/2 teaspoon Kashmiri red chili powder – for color and mild spice
- 1/4 teaspoon turmeric powder
- 1 teaspoon coriander powder
- 1/4 teaspoon garam masala
- 1/2 teaspoon sugar (optional, to balance tang)
- Salt, to taste
- 1/2 cup water (or more as needed)
- 1/4 cup fresh cream (about 60 ml)
Garnish:
- Fresh coriander leaves
- A drizzle of cream
- Extra butter, for serving
Pro Tips Before You Start
✔ Use fresh, soft paneer for best results — soak store-bought paneer in warm water for 10 minutes to soften it.
✔ Kashmiri chili powder gives the dish its signature color without making it too hot.
✔ Cashews add creaminess and a subtle sweetness to the gravy.
✔ Be generous with butter and cream for authentic restaurant-style richness.
Step-by-Step Method
Step 1: Prep the Paneer
Cut the paneer into medium-sized cubes.
(Optional) Heat a teaspoon of butter or oil in a pan and lightly sauté the paneer cubes for 1–2 minutes on each side, until they’re lightly golden. Soak them in warm water to keep them soft while you prepare the gravy. This step is optional — you can also use paneer as is.
Step 2: Make the Tomato-Cashew Puree
In a saucepan, heat 1 teaspoon oil. Add chopped onions and sauté until they turn soft and translucent.
Add chopped tomatoes and cashews. Cook for 5–6 minutes until the tomatoes soften.
Turn off the heat and let the mixture cool slightly. Blend it into a smooth puree using a little water if needed. Strain if you want an extra smooth texture.
Step 3: Cook the Gravy
Heat a heavy-bottomed pan over medium heat. Add 2 tablespoons butter and 1 tablespoon oil.
Add ginger-garlic paste and sauté for 1 minute until fragrant.
Pour in the prepared tomato-cashew puree and mix well.
Cook the gravy on medium heat for about 8–10 minutes, stirring occasionally, until it thickens slightly and you see fat releasing on the sides.
Add Kashmiri red chili powder, turmeric powder, coriander powder, garam masala, and salt. Stir well.
Add about 1/2 cup water to adjust the consistency. Simmer the gravy for another 5–7 minutes.
Step 4: Add Paneer & Finish
Gently add the paneer cubes to the simmering gravy. Stir to coat the paneer evenly.
Add sugar if desired, and adjust salt to taste.
Simmer for 3–4 more minutes so the paneer absorbs the flavors.
Finally, stir in the fresh cream and turn off the heat. Garnish with a drizzle of cream, a knob of butter, and freshly chopped coriander.
Watch the Video Tutorial
If you prefer to watch step-by-step instructions, here’s a video to help you make Paneer Butter Masala easily at home:
Tips to Make the Best Paneer Butter Masala
- Use fresh, good-quality paneer — soft and not crumbly.
- Don’t overcook the paneer; simmering it too long can make it chewy.
- Adjust the sweetness and tang according to your taste — add a pinch of sugar if the tomatoes are too tangy.
- For extra richness, add a teaspoon of kasuri methi (dried fenugreek leaves) at the end for aroma.
Why This Recipe Works
✅ Simple, approachable method — perfect even for beginners.
✅ Balanced flavors — creamy, mildly spiced, and not overpowering.
✅ Restaurant-style texture and color without artificial colors.
✅ Ready in about 45 minutes with everyday ingredients.
How to Store & Reheat
Paneer Butter Masala stays good in the fridge for up to 2 days. Store in an airtight container.
Reheat on the stove over low heat, adding a splash of water or milk to loosen the gravy. Stir in a little cream before serving.
Not ideal for freezing as paneer can turn rubbery.
Serving Suggestions
Paneer Butter Masala pairs beautifully with:
- Garlic Butter Naan
- Tandoori Roti
- Jeera Rice
- Lachha Paratha
- Steamed Basmati Rice
- Green salad & pickled onions
Complete your meal with a side of raita and crispy papad for a true North Indian restaurant feel!
Conclusion
Paneer Butter Masala is the ultimate crowd-pleaser — creamy, rich, and comforting. It’s perfect for special occasions yet easy enough to make on a weeknight when you crave something indulgent.
Next time you’re looking to impress your guests or treat yourself, whip up this easy traditional Paneer Butter Masala. Serve it hot, garnish it generously, and watch it disappear from plates in no time.
Because nothing says celebration like a bowl of creamy, buttery Paneer Butter Masala!
