Paneer Butter Masala
Paneer Butter Masala is a medium Indian recipe that serves 4. 350 calories per serving. Recipe by HomeCookingShow on YouTube.
Prep: 20 min | Cook: 48 min | Total: 1 hr 23 min
Cost: $18.85 total, $4.71 per serving
Ingredients
- 1 tablespoon Vegetable Oil (neutral oil for sautéing)
- 2 large Onion (peeled and finely chopped)
- 10 pieces Red Chili (fresh red chilies, seeds removed for less heat if desired)
- 3 large Tomato (peeled and chopped)
- 1 cup Cashews (raw, unsalted)
- 1 teaspoon Salt (adjust to taste)
- 3 teaspoons Ghee (Clarified Butter) (for richness, can substitute with unsalted butter)
- 2 teaspoons Kashmiri Red Chili Powder (mild, bright red color)
- 1 teaspoon Garlic Powder (or fresh minced garlic)
- 2 pieces Bay Leaf (adds subtle aroma)
- 1 handful Cilantro Leaves (roughly chopped)
- 1 teaspoon Sugar (balances acidity; optional if using sweet khoya)
- 2 tablespoons Fresh Cream (full‑fat for best texture)
- 3 grams Khoya (Dried Milk Solids) (unsweetened; can substitute with 2 tbsp condensed milk)
- 3 tablespoons Milk (for blending with khoya)
- 0.25 cup Water (adjust sauce consistency)
- 300 grams Paneer (firm Indian cheese, cut into 1‑inch cubes)
- 1 teaspoon Additional Salt (final seasoning)
Instructions
Sauté Onions
Heat 1 tbsp oil in a large skillet over medium heat. Add the chopped onions and sauté until they turn translucent, about 5 minutes.
Time: PT5M
Temperature: medium heat
Add Chilies and Tomatoes
Stir in the 10 red chilies and the chopped tomatoes. Cook, stirring occasionally, until the tomatoes soften and break down into a thick mash, about 8 minutes.
Time: PT8M
Temperature: medium heat
Season and Cool
Add 1 tsp salt, mix well, then remove the pan from the heat and let the mixture cool for 5 minutes.
Time: PT5M
Blend to Cashew Paste
Transfer the cooled onion‑tomato‑chili mixture to a blender. Add 1 cup raw cashews and blend until a smooth, creamy paste forms.
Time: PT2M
Temper Spices
Return the skillet to medium heat. Add 3 tsp ghee and let it melt, then stir in 2 tsp Kashmiri red chili powder. Cook for 1 minute, stirring constantly so the powder does not burn.
Time: PT1M
Temperature: medium heat
Combine Paste and Simmer
Pour the cashew‑tomato paste back into the skillet. Add a splash of water to loosen if needed and simmer for 5 minutes, allowing the flavors to meld.
Time: PT5M
Temperature: medium heat
Add Aromatics
Stir in 1 tsp garlic powder, 2 bay leaves, and the chopped cilantro. Reduce heat to low, cover, and let the masala cook gently for 10 minutes.
Time: PT10M
Temperature: low heat
Prepare Khoya‑Milk Paste
In a small bowl, combine 3 g unsweetened khoya with 3 tbsp milk and 1 tsp sugar (if using unsweetened khoya). Blend until smooth.
Time: PT2M
Finish the Sauce
Add 2 tbsp fresh cream, the khoya‑milk paste, an additional ¼ cup water, and 1 tsp salt to the skillet. Stir well and simmer for 2 minutes on low heat.
Time: PT2M
Temperature: low heat
Add Paneer and Cook Through
Gently fold in the 300 g paneer cubes. Cover and simmer on low heat for another 10 minutes until the paneer absorbs the sauce and becomes tender.
Time: PT10M
Temperature: low heat
Serve
Remove bay leaves, give the curry a final stir, and serve hot with naan, roti, or steamed basmati rice.
Time: PT0M
Nutrition Facts
- Calories
- 350
- Protein
- 12 g
- Carbohydrates
- 15 g
- Fat
- 25 g
- Fiber
- 3 g
Dietary info: Vegetarian, Gluten‑Free
Allergens: Dairy, Tree nuts
Ingredient Substitutions
- Instead of Vegetable Oil: canola oil, sunflower oil
- Instead of Onion: yellow onion
- Instead of Red Chili: dried red chili flakes
- Instead of Tomato: canned crushed tomatoes (1 cup)
- Instead of Cashews: almonds, macadamia nuts
- Instead of Ghee (Clarified Butter): unsalted butter
- Instead of Kashmiri Red Chili Powder: paprika + a pinch cayenne
- Instead of Garlic Powder: fresh garlic (1 clove)
- Instead of Cilantro Leaves: fresh parsley
- Instead of Sugar: honey (½ tsp)
- Instead of Fresh Cream: half‑and‑half, coconut cream (for dairy‑free)
- Instead of Khoya (Dried Milk Solids): condensed milk (2 tbsp)
- Instead of Milk: almond milk (unsweetened)
- Instead of Paneer: firm tofu for vegan version
Equipment Needed
- Large Skillet or Frying Pan
- Blender or Food Processor
- Mixing Bowl
- Sharp Knife
- Cutting Board
- Spatula or Wooden Spoon
- Ladle (optional)
- Measuring Spoons
- Measuring Cups
Critical Steps — Do Not Skip
- Blending the hot onion‑tomato mixture with cashews (ensure it’s cooled enough to avoid steam burns)
- Cooking Kashmiri chili powder without letting it scorch
- Simmering paneer on low heat to keep cubes intact and absorb flavor
Chef Tips from the Video
- Soak the cashews in warm water for 10 minutes before blending for an even smoother texture
- Use unsweetened khoya for better control of sweetness; add sugar only if needed
- Kashmiri chili powder gives color without excessive heat – you can add a pinch of regular chili powder for extra spice
Troubleshooting
Sauce is too thick
Add a little more water (1‑2 tbsp) and stir until desired consistency is reached.
Sauce tastes bland
Adjust with extra salt, a pinch more sugar, or a splash of lemon juice for brightness.
Paneer falls apart
Add paneer at the very end and simmer gently; use firm paneer and avoid vigorous stirring.
Storage
Refrigerator: Store in an airtight container for up to 3 days
Freezer: Freeze in a freezer‑safe bag for up to 1 month; thaw and reheat gently
Room temperature: Do not keep at room temperature for more than 2 hours
Make-Ahead Tips
- The masala sauce can be prepared up to 2 days ahead and refrigerated; reheat gently before adding paneer
- Paneer can be cubed and stored in water in the fridge to stay soft
Frequently Asked Questions
What is the cultural significance and history of Paneer Butter Masala in Indian cuisine?
Paneer Butter Masala, also known as Paneer Makhani, originated in North India during the 1970s as a restaurant‑style adaptation of traditional butter‑based curries. It showcases the Indian love for rich, creamy gravies and has become a staple at celebrations and everyday meals alike.
What are the traditional regional variations of Paneer Butter Masala within Indian cuisine?
In Punjab, the dish is made with generous ghee and cream, while in the South, coconut milk may replace dairy for a lighter version. Some regions add fenugreek leaves for a subtle bitterness, but the core ingredients—paneer, tomato‑cashew base, and butter—remain consistent.
How is Paneer Butter Masala traditionally served in Indian households?
It is typically served hot with naan, roti, or steamed basmati rice, often accompanied by a side of fresh cucumber raita. During festivals, it may be presented on a large platter surrounded by other vegetarian dishes.
What occasions or celebrations is Paneer Butter Masala traditionally associated with in Indian culture?
Paneer Butter Masala is a popular choice for birthdays, weddings, and religious festivals like Diwali and Navratri because its rich flavor feels festive and it satisfies both vegetarians and non‑vegetarians alike.
What authentic ingredients give Paneer Butter Masala its unique flavor compared to other Indian paneer dishes?
The combination of cashew paste, unsweetened khoya, Kashmiri red chili powder, and a splash of fresh cream creates a silky, slightly sweet, and vibrant red gravy that sets it apart from simpler tomato‑onion curries.
What are common mistakes to avoid when making Paneer Butter Masala at home?
Common errors include burning the chili powder, over‑cooking the paneer (which makes it rubbery), and using too little water, resulting in a thick, pasty sauce. Follow the low‑heat simmer steps and adjust liquid as needed.
Why does this Paneer Butter Masala recipe use cashew paste instead of just tomatoes for thickening?
Cashews add natural creaminess and body without the need for excessive cream or flour, giving the gravy a smooth texture while keeping the flavor authentic to restaurant‑style butter masala.
Can I make Paneer Butter Masala ahead of time and how should I store it?
Yes. Prepare the sauce up to step 9, let it cool, then refrigerate in an airtight container for up to 3 days. Reheat gently, add fresh paneer, and simmer for a few minutes before serving.
What texture and appearance should I look for when the Paneer Butter Masala is done?
The gravy should be glossy, smooth, and a deep orange‑red color. Paneer cubes should be soft but retain their shape, and the sauce should coat the back of a spoon without clumping.
What does the YouTube channel HomeCookingShow specialize in?
The YouTube channel HomeCookingShow focuses on approachable, step‑by‑step home cooking tutorials that highlight classic comfort dishes from around the world, with an emphasis on clear visuals and practical kitchen tips.
How does the YouTube channel HomeCookingShow's approach to Indian cooking differ from other Indian cooking channels?
HomeCookingShow blends traditional Indian techniques with modern kitchen equipment, such as using a blender for cashew‑based sauces, and always provides cost‑effective ingredient alternatives, making authentic Indian recipes accessible to everyday home cooks.
Last updated: August 28, 2026








