Paneer Butter Masala – rich, creamy, luscious gravy made with an onion-tomato base and a few spices along with paneer/ Indian cottage cheese. This mild gravy is best paired with roti, naan, or jeera rice.
This is one of the Indian curry recipes which you have to try. Let’s see how to make this lip-smacking, curry right in your home.

What is Paneer?
Paneer is an incredible ingredient involved in Indian cooking. It is rich in calcium. There are many yummy recipes like matar paneer, palak paneer, paneer tikka made using paneer.
How to make Paneer Butter Masala?
Paneer butter masala is a Punjabi dish. Here I give you my version of making easy paneer butter masala without cream. Yes, you heard it. With no cream used yet, we achieve the creamy texture.
Ingredients required

Stovetop method
Soak the cashews for 10 to 15 minutes. Soak the cubed paneer in water.
In a deep pan add onion, ginger, garlic, and sliced tomato. Add 1 cup of water and cook till the onions and tomato become soft.
Let it cool down completely. Grind it along the cashews to smooth paste.
In the pan add 2 tablespoons of butter. When it is hot crackle jeera seeds. Then add ground onion tomato paste along with the required water.

Add all the spice powders except garam masala. Let it cook on medium flame thoroughly.
Cover the pan as the gravy splatter. Check the gravy consistency. Add ½ cup to 1 cup of water. Add salt.
Now add cubed paneer. Mix thoroughly in the gravy.
Let it cook for 1 or 2 minutes. Before switching off the flame add Kasuri methi by crushing in your fingers.
Instant pot method
Switch on the instant pot and add chopped onions, tomato, ginger, garlic, cashews, and spice powders except for garam masala. Add 1/2 cup of water.
Close the instant pot with the lid. Press the pressure cook or manual button and set the timer to 3 minutes. Let the pressure release naturally.
Now either you can use an immersion blender to blend the onion and tomato in the instant pot or remove the cooked onion-tomato mixture to the blender and blend it to smooth paste.

Press the saute button in the instant pot. Add the butter to the instant pot. Once it melts, add cumin seeds.
When it crackles, add the onion tomato paste and saute. Add ½ cup of water and garam masala. Let it cook till the onion tomato paste becomes thick gravy consistency.
Add the required salt and paneer. Let the gravy coat the paneer and cook for 1 or 2 minutes.
Crush the Kasuri methi with your fingers and add it to the paneer butter masala.
Switch off the instant pot. Serve paneer butter masala with naan, roti, or simple jeera rice.
| Expert tips 1. You can add bay leaf and cardamom instead of just cumin seeds for more flavor. 2. To get the restaurant-quality paneer butter masala, add a little less than ¼ cup of heavy cream before you add paneer cubes. 3. You can also add 1 teaspoon of sugar to the gravy to make it a little sweeter. |
| Check out more Instant pot Indian recipes to entertain your friends and family. |
Can I make paneer butter masala vegan?
Yes, you can definitely make paneer butter masala vegan but substitute butter with olive oil or vegan butter and tofu for paneer.
Can I freeze paneer butter masala?
Yes, you can. Freeze the cooked, thick onion tomato base in freezer-safe, air-tight bags for 2 to 3 weeks. Do not add salt if you are going to freeze.
When you are going to make paneer butter masala, thaw the frozen onion tomato base. Add butter to the pan, and cook the base. Add salt and the cubed paneer. Finish it off by adding crushed Kasuri methi.

Easy Paneer butter masala recipe
INGREDIENTS
Paneer – 250 grams ( see notes)
Onion – 1 cup roughly chopped
Tomato – 2 large-sized roughly chopped
Ginger – ½ inch
Garlic – 3 cloves
Cashews – 15
Turmeric powder – 1/4 teaspoon
Red chili powder – 1/2 teaspoon
Kashmiri chili powder – 1 teaspoon
Coriander Powder – 1 1/2 teaspoon
Garam masala powder – 1/2 teaspoon
Butter – 2 Tablespoons
Jeera seeds – 1/4 teaspoon
Kasuri methi – a generous pinch
Salt – As required
Method
Stovetop
- Soak the cashews for 10 to 15 minutes. Soak the cubed paneer in water.
- In a deep pan add onion, ginger, garlic, and chopped tomato. Add 1 cup of water.
- Cover and cook till the onions and tomato become soft.
- Let it cool down completely. Grind it along the cashews to smooth paste.
- In the pan add 2 tablespoons of butter. When it is hot crackle jeera seeds. Then add ground onion tomato paste along with the required water.
- Add all spice powders except garam masala. Let it cook on medium flame thoroughly.
- Cover the pan as the gravy splatter. Check the gravy consistency. Add ½ cup to 1 cup of water. Add salt.
- Now add cubed paneer. Mix thoroughly in the gravy. Add garam masala.
- Let it cook for 1 or 2 minutes. Before switching off the flame add kasuri methi by crushing in your fingers.
- Serve warm with roti or naan.

Instant pot method
- Switch on the instant pot and add chopped onions, tomato, ginger, garlic, cashews, and spice powders except for garam masala. Add 1/2 cup of water.
- Close the instant pot with the lid. Press the pressure cook or manual button and set the timer to 3 minutes. Let the pressure release naturally.
- Now either you can use an immersion blender to blend the onion tomato in the instant pot or remove the cooked onion tomato mixture to the blender and blend it to a smooth paste.
- Press the saute button in the instant pot. Add the butter to the instant pot. Once it melts, add cumin seeds.
- When it crackles, add the onion tomato paste and saute. Add ½ cup of water and garam masala. Let it cook till the onion tomato paste becomes thick gravy consistency.
- Add the required salt and paneer. Let the gravy coat the paneer and cook for 1 or 2 minutes.
- Crush the kasuri methi with your fingers and add it to the paneer butter masala.
- Switch off the instant pot. Serve paneer butter masala with naan, roti, or simple jeera rice.


Notes
- I have added Kashmiri red chili powder to give it a bright red color. If you do not have Kashmiri red chili powder, you can just add 1 teaspoon of red chili powder. The color of the gravy will differ though it tastes the same.
- You can also add a dollop of butter on top of the warm gravy before serving for the richness.
- Once you cut the Paneer, immerse it in warm water till using it in gravy. Do not cook for a long time in gravy. This ensures Paneer remains soft.
Easy paneer butter masala
Equipment
- Immersion blender
Ingredients
- 250 grams Paneer see notes
- 1 Cup Onion roughly chopped
- 2 Tomato roughly chopped
- 1/2 inch Ginger
- 3 cloves Garlic
- 15 Cashews
- 1/4 teaspoon Turmeric powder
- 1/2 teaspoon Red chili powder
- 1 teaspoon Kashmiri chili powder
- 1 1/2 teaspoon Coriander Powder
- 1/2 teaspoon Garam masala powder
- 2 Tablespoons Butter
- 1/4 teaspoon Jeera seeds
- Kasuri methi a generous pinch
- Salt As required
Instructions
Stovetop
- Soak the cashews for 10 to 15 minutes. Soak the cubed paneer in water.
- In a deep pan add onion, ginger, garlic, and chopped tomato. Add 1 cup of water.
- Cover and cook till the onions and tomato become soft.
- Let it cool down completely. Grind it along the cashews to smooth paste.
- In the pan add 2 tablespoons of butter. When it is hot crackle jeera seeds. Then add ground onion tomato paste along with required water.
- Add all spice powders except garam masala. Let it cook on medium flame thoroughly.
- Cover the pan as the gravy splatter. Check the gravy consistency. Add ½ cup to 1 cup of water. Add salt.
- Now add cubed paneer. Mix thoroughly in the gravy . Add garam masala.
- Let it cook for 1 or 2 minutes. Before switching off the flame add kasuri methi by crushing in your fingers.
- Serve warm with roti or naan.
Instant pot method
- Switch on the instant pot and add chopped onions, tomato, ginger, garlic, cashews and spice powders except garam masala. Add 1/2 cup of water.
- Close the instant pot with the lid. Press the pressure cook or manual button and set the timer to 3 minutes. Let the pressure release naturally.
- Now either you can use an immersion blender to blend the onion tomato in the instant pot or remove the cooked onion tomato mixture to the blender and blend it to smooth paste.
- Press the saute button in the instant pot. Add the butter in the instant pot. Once it melts, add cumin seeds.
- When it crackles, add the onion tomato paste and saute. Add ½ cup of water and garam masala. Let it cook till the onion tomato paste becomes thick gravy consistency.
- Add required salt and paneer. Let the gravy coat the paneer and cook for 1 or 2 minutes.
- Crush the kasuri methi with your fingers and add it to the paneer butter masala.
- Switch off the instant pot. Serve paneer butter masala with naan, roti or simple jeera rice.
Video
Notes
- I have added Kashmiri red chili powder to give it a bright red color. If you do not have Kashmiri red chili powder, you can just add 1 teaspoon of red chili powder. The color of the gravy will differ though it tastes the same.
- You can also add a dollop of butter on top of the warm gravy before serving for richness.
- After you cut the Paneer, immerse it in warm water till using it in gravy. Do not cook for a long time in gravy. This ensures Paneer remains soft.
Nutrition
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This post was originally published on June 6, 2017. Now updated with content and pictures.




This masala is better than Indian takeout! Seriously delicious.
Thank you so much
This recipe is seriously delicious. We made this for dinner and everyone raved about it!
Thank you so much. Glad you liked it.
I made this Paneer Butter Masala recipe, and it turned out amazing! The creamy tomato gravy paired with tender paneer cubes was simply irresistible. Thanks for sharing the recipe – it’s now one of my favorite dishes to prepare!
That’s really awesome to hear. Thank you for trying.
I’ve made butter tofu/paneer for years but this was the first time I felt like I was making something more authentic! Thank you – such a great recipe.
You are welcome. Am really glad you loved it.
This was stunning, we loved it for dinner and lunch the next day!
Thank you for trying.
It was nice to go through your post. Thanks for sharing the recipe here. Keep up the good work.
thank you
Looks so yummy Lathiya!
Thank you dear
Yummy! One of my fav paneer dishes:)
Thank you dear 😊..mine too
Delicious!!
Thank you dear
looks delicious Lathiya! great combination with roti
Indeed dear.. thank you 😊
Yummy. As you have mentioned this is a must when we go to Indian restaurants.
Thank you dear 😊