About Paneer Curry

While there are many delicious Indian Paneer Curries made with cottage cheese, this paneer gravy recipe is one of my favorites. The addition of onion paste and the special spice blend make this paneer curry recipe quite different from others I have posted on the blog. You may have encountered a similar style of paneer curry in Indian restaurants; sometimes you’ll see it made with potatoes and peas in addition to paneer. Whenever I make recipes that feature paneer, I make my own version of the beloved Indian cottage cheese at home; I’d choose Homemade Paneer over store bought every time! Instead of paneer and cream, you can also use tofu and coconut cream to make this vegan. Just note that the coconut cream will leave a faint coconut flavor that isn’t present in the original. If tomatoes are not in season, opt to use canned whole tomatoes instead. You do not want to use sour tomatoes, and canned are always picked at peak freshness. You can also substitute cherry tomatoes, which can be grown in greenhouses year round and will often taste better than other out of season varieties. This paneer gravy is best served with chapati, paratha or Naan. You can also serve this cottage cheese curry with plain rice, cumin rice, Ghee Rice or biryani rice.

How to make Paneer Curry

Prep Ingredients

  1. First, soak 12 to 15 cashews in hot water for 20 to 30 minutes.
  2. When the cashews are soaking, roughly chop 2 large tomatoes, 1 large onion, 1 inch ginger and 6 to 7 small to medium garlic cloves. Crush the ginger and garlic to a paste in mortar-pestle.
  3. Add the chopped onions to a blender or grinder jar.
  4. Without adding any water, grind or blend to a smooth and fine paste. Remove to a bowl and set aside. 5. To the same grinder jar (no need to wash it), add chopped tomatoes and soaked cashews.
  5. Again without adding any water, grind or blend tomatoes and cashews to a fine smooth paste. Keep the jar aside.

Make Masala For Paneer Gravy

  1. Heat 3 tablespoons oil in a thick bottomed pan or kadai. Add the onion paste.
  2. Sauté the onion paste over a low to medium-low heat, stirring often. Be careful while adding onion paste as it splutters.
  3. Sauté till the onion paste begins to caramelize and become golden.
  4. Add the crushed ginger-garlic paste. If using ready ginger-garlic paste, then add 1 teaspoon of it.
  5. Stir and sauté for few seconds or till the raw aroma of ginger-garlic goes away.
  6. Now add the tomato-cashew paste. Be careful as the mixture can splutter.
  7. Mix everything very well and begin to sauté the masala on a low heat.
  8. While the masala is cooking, add 1.5 cups of water to the grinder or blender jar. Swirl the jar so that the tomato paste at the sides and at the bottom gets mixed with the water. Keep aside.
  9. Continue sautéing and stirring the onion-tomato-cashew masala till you see some fat releasing from the sides and the sauce becomes glossy.

Make Paneer Gravy

  1. Then add the following ground spices:

¼ teaspoon turmeric powder ½ teaspoon red chilli powder or cayenne pepper ½ teaspoon coriander powder ½ teaspoon garam masala powder

  1. Stir and mix in the spice powders very well.
  2. Add 1 or 2 slit green chilies.
  3. Add the water which you mixed with the leftover tomato+cashew paste from the grinder or blender jar.
  4. Season with salt as required.
  5. Add 1 tablespoon of chopped coriander leaves.
  6. On a low to medium heat, simmer the gravy till it thickens a bit and you see oil specks on top.
  7. Then add 200 grams paneer that has been cut into cubes or squares. Preferably use homemade soft paneer.
  8. Add ½ teaspoon of crushed kasuri methi (dry fenugreek leaves). Mix well and switch off the heat.
  9. Add 2 tablespoons low fat cream or light cream or 1 tablespoon whipping cream.
  10. Mix in the cream until well incorporated. Switch off the heat. Taste the cottage cheese curry, adding more salt if required. You can also add ¼ to ½ teaspoon sugar at this step if it tastes too tangy from the tomatoes, being sure to mix it in very well.
  11. Serve paneer curry garnished with chopped coriander leaves accompanied with chapati, paratha, Naan or tandoori roti or steamed rice or Jeera Rice. Please be sure to rate the recipe in the recipe card or leave a comment below if you have made it. For more vegetarian inspirations, Sign Up for my emails or follow me on Instagram, Youtube, Facebook, Pinterest or Twitter. Matar Paneer Recipe | Punjabi Mutter Paneer Shahi Paneer Recipe (Mughlai Style) Paneer Tikka Masala Recipe – Restaurant Style Delight Palak Paneer Recipe (Spinach & Paneer Cheese Curry) This Paneer Curry post from the archives (September 2016) has been updated and republished on 18 October 2021.

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