Paneer Butter Masala Recipe

Pair it with homemade Naan and enjoy a restaurant-quality Indian feast in the comfort of your home! This paneer butter masala is a vegetarian variation of the popular north-Indian classic called Butter Chicken. In this mild curry, firm Indian cottage cheese cubes (Paneer) is cooked in a rich and buttery tomato sauce. It’s a better-than-takeout meal that comes together in the Instant pot in just 25 minutes!

Fun fact: The original paneer masala dish was created in the 1950s by the chef of a renowned restaurant in New Delhi, called ‘Moti Mahal Delux’. Let’s get started and make a restaurant-quality Butter Paneer recipe, aka, Paneer Makhani!

Ingredients- Notes & Substitutions

This easy paneer butter masala recipe is made up of simple ingredients, most of which you probably already have around. Paneer: you can either use homemade paneer or you can find paneer blocks in most Indian and international food stores. You may be able to find it in select Costco, Whole Foods, and Safeway locations. Unsalted Butter: you can also use ghee or light olive oil. Aromatics & Seasonings: you’ll use a blend of ginger, garlic, turmeric powder, Kashmiri chilli powder, paprika (regular), garam masala, and coriander powder. If you can’t find Kashmiri red chili powder, replace it with an equal amount of paprika + a pinch of cayenne. Diced Tomatoes: you can use canned diced tomatoes or puree 4 ripe Roma or plum tomatoes yourself. If using any other kind of tomato, discard the seeds before pureeing. Heavy Whipping Cream: gives the sauce a smooth texture and rich flavor. Alternatively, use full-fat coconut cream for a dairy-free alternative. Herbs: I use a combination of Kasoori Methi (aka dried fenugreek leaves) and fresh cilantro, but if you can’t find Kasoori Methi, cilantro alone will work as well. Sugar: you can use sugar, honey, or agave syrup. The sweetener is used to help balance out the acidity of the tomatoes. Use more or less to taste and feel free to leave it out if your curry tastes perfect as-is! Scroll below for the printable recipe card and ingredient measurements. Variation - Vegan Paneer Butter Masala: For a vegan option, use extra-firm tofu cut into ½-inch pieces instead of paneer. Replace ghee with olive or any neutral oil. For thickening, add coconut cream instead of heavy whipping cream. Scroll to the recipe card for a detailed list of ingredients and quantities.

How to Make Paneer Butter Masala

Here are the step-by-step photos and instructions to make this restaurant-quality instant pot paneer butter masala right at home! Saute aromatics: Hit SAUTE on your instant pot. When it becomes hot, add in butter or ghee, minced ginger, and garlic. Saute for 30 seconds- 1 minute, then cancel SAUTE. (pic 1) Add tomato & spices: Pour in water and deglaze any brown bits stuck in the pot. Add in tomato puree and spices, stir, then close and lock the lid. (pic 2 & 3) Pressure Cook: Cook on high pressure for 4 minutes. When the cooking time is up, manually release the pressure. (pic 4) Simmer paneer: Turn on Saute. Add in paneer cubes, dried fenugreek leaves, sugar (or honey), and heavy whipping cream (or coconut cream). Stir, then simmer for 3-4 minutes until the paneer softens. Check for seasoning and cancel saute. (pic 5 & 6) Garnish & Serve: Garnish with chopped cilantro and serve with cumin rice, spinach rice, or homemade naan. (pic 7 & 8) Tips for soft paneer: Be careful not to overcook your paneer as that can become rubbery! If using a pre-frozen or store-bought paneer, soak the cubes in hot water for 5-10 minutes. That softens the paneer cubes.

Alternate Method: Stovetop Paneer Butter Masala

If you don’t have an instant pot, this paneer butter masala recipe can easily be made on the stove as well. Here’s how:

Heat a large skillet over medium-high heat, then add in butter (or ghee.) Once the butter is melted, add in the ginger and garlic and saute for 30 seconds-1 minute.Stir in water, tomato puree, and seasonings, then cover and cook until heated through, about 10 minutes.Remove the lid, then add in paneer cubes, herbs, sugar, and heavy cream. Stir, then let simmer for 3-4 minutes to thicken.

Serving Suggestions

I serve butter paneer right away for the best flavor and texture. Enjoy a complete vegetarian Indian meal by pairing it with any of these popular Indian recipes:

Rice: serve it alongside steamed basmati rice, spinach rice or jeera rice.Bread: pair it with a side of homemade Naan, Roti, or Paratha.Low Carb Sides: serve it with Indian cauliflower rice, or low-carb tortilla or almond flour tortilla.Veggies: serve it alongside a veggie-heavy side such as Aloo Gobi, Bhindi Masala, or Beetroot Thoran.

How to Store

Store leftover butter masala in an airtight container in the fridge for 4-5 days. To reheat, microwave, or warm on the stove. You can also freeze Butter Paneer for up to 3 months. To reheat, thaw it overnight in the fridge and warm in the microwave or on the stovetop.