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Restaurant-style Paneer Butter Masala Recipe: How to make it?

Paneer Butter Masala Recipe

| Mar 02, 2023

Isn’t it great to make our favourite restaurant dishes at home? Restaurant-style paneer butter masala recipe is one such mouth-watering dish. This paneer butter masala recipe will undoubtedly become a favourite of yours, as well as that of your loved ones. It is well-known for its mildly spicy and sweet flavour and the goodness of fresh cream and butter on top of moist paneer. Yes, this is a typical north Indian dish filled with spices, amazing flavours, and creamy curry. Let’s get started with the step-by-step instructions for making a restaurant-style paneer butter masala recipe. 

About Paneer Butter Masala Recipe

The paneer butter masala recipe is the yummiest. Who in the world could resist the classic, best-of-the-best, droll-worthy paneer curry? Butter paneer, sometimes referred to as paneer butter masala, is a thick, creamy, tomato-based dish in which fried paneer cubes are soaked. This curry is a little sweet and not that spicy at all. With freshly made roti, chapatti, Naan, and even an option of rice, it is one of the most popular curries for vegetarians and is made for both lunch and dinner.

You don’t need to be a skilled cook to make this paneer butter masala recipe at home. It is quite simple to prepare at home and is brimming with flavour, colour, creaminess, and the perfect amount of preferred spices. You can prepare everything in one pot and serve it with homemade roti or jeera rice for a restaurant-style dinner tonight. This mouth-watering paneer butter masala recipe can be completely customised and is ready in 30 minutes.

Ingredients Required

The following is the list of ingredients you will need to prepare this finger-licking and delicious paneer butter masala recipe:

Ingredients Required
  1. Paneer: This one should come as no surprise, right? This recipe calls for fresh and creamy A2 paneer. If you’re using frozen paneer, soak it in warm water for a couple of minutes until it’s soft and thawed. Reminder, don’t soak your paneer for too long, or it will start falling to pieces during cooking.
  2. Onions: This dish requires two medium onions. Make certain that they are finely chopped.
  3. Butter: This recipe requires unsalted butter. Don’t compromise with the quantity of the butter, as it’s the star ingredient that gives the recipe its creamy, buttery flavour.
  4. Garlic + Ginger: Use fresh garlic and ginger to add aroma and flavour. You have the option of using sliced, crushed, or paste.
  5. Tomato and Tomato Paste: You’ll need two freshly chopped tomatoes as well as tomato paste for this. You can make the paste at home or buy it at your local grocery store.
  6. Fresh Cream: Use fresh cream with 35% fat content or higher for that velvety, luscious, and creamy restaurant-style paneer butter masala recipe.
  7. Whole Spice: Cloves[1], bay leaf, green cardamom, black cardamom, and cinnamon.
  8. Spices: Hing, Kashmiri red chilli powder, coriander powder, salt, turmeric powder, and garam masala powder. 
  9. Kasoori Methi: A must-have ingredient. Before adding the dried kasoori Methi to your dish, crush it between your palms. It will add a lovely aroma and flavour to your paneer butter masala recipe.
  10. Cashew: This is where the creamy texture of our dish comes from. If you are allergic to cashew nuts, substitute with equal parts cream or half and half.

Step-By-Step Instructions for Making Paneer Butter Masala Recipe

Step 1: Cook butter in a heavy-bottomed pan over medium heat. When completely melted, add onions and sauté until the onions turn brown. Next, add the ginger garlic paste. Cook for a few minutes or until it develops a mouth-watering aroma.

Step 2: Add cashews to the mixture and cook for 5 minutes. Now add the chopped tomatoes and season with salt. Cook until the tomatoes are soft and squishy.

Step 3: When the tomatoes are fully cooked, turn off the heat and set the mixture aside to cool. When the mixture has cooled completely, pour it into a blender to make a thick and creamy paste.

Step 4: Now, in a kadhai, melt the butter and oil over medium heat. Once the oil has been heated through, add the bay leaf, black cardamom, cloves, green cardamom, hing, and cinnamon. Sauté these spices until a strong aroma fills the room. Cook for a minute after adding the Kashmiri red chilli powder.

Step 5: Now add the blended gravy that we made earlier. Stir until the gravy is completely combined. After 5 minutes, add the Kashmiri chilli powder, coriander powder, turmeric powder, and salt (Add these spices according to your taste). Stir until the spices are evenly blended.

Step 6: Now, to your cooking gravy, add tomato paste and garam masala powder. Cook for another 2 minutes but keep stirring continuously. Begin adding water to your cooked gravy now. Add water depending on the consistency you want.

Step 7: It’s time to add kasoori methi when your gravy begins to ooze oil from the sides. Add a limited dose of vegetable oil to a non-stick pan. When the oil is hot, add the paneer cubes and fry them until the sides turn golden brown.

Step 8: When the paneer cubes are completely fried, add them to the tomato butter gravy. Cook for an additional 3-5 minutes. Transfer your creamy paneer butter masala recipe to a serving bowl and top with fresh cream. Serve immediately with rotis, Naan, or rice.


Now that you know how to make paneer butter masala in the comfort of your own home in a restaurant-style way, we want you to know a few more things to improve its flavour. To make the dish more nutritious and perfect, we advise adding fresh A2 paneer. We also don’t want you to skip the kasoori methi because it gives your food a delicate flavour and scent. Prepare a paneer butter masala recipe right away if you want to satisfy your taste buds. 

Read our Article: 15 Best Paneer Recipes that Paneer Lovers Must Try

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