Butter paneer masala is a smooth, silky, and creamy gravy dish from Indian cuisine. It is not wrong to say it is a vegetarian version of butter chicken. Paneer is a form of soft cheese that is a staple ingredient in Indian cuisine, it is made from cow or buffalo’s milk. For making Butter paneer masala firstly a base is prepared by blending onion, tomatoes, and cashews into a smooth paste then the paneer is cooked in gravy. You can easily make this tempting dish within an hour with just simple ingredients.

Butter Paneer Masala

  • Preparation time:  10 minutes
  • Cooking time:  20 minutes
  • Total time: 30 minutes
  • Type:  Main course
  • Cuisine: Indian
  • Yield: 4 Servings
  • Calories:  700 kcal
Butter Paneer Masala Ingredients
  • Paneer 20 cubes
  • Onion (sliced) 2 large
  • Garlic 2 cloves
  • Ginger 1 inch
  • Tomatoes (sliced) 3
  • Cashew 25
  • Butter 1 cup
  • Cream 4 tbsp
  • Water 1 cup
  • Cloves 5
  • Cardamom 2
  • Bay leaf 1
  • Green chili 1
  • Turmeric powder ½ tsp
  • Red chili powder 1 tsp
  • Coriander powder ½ tsp
  • Cumin powder ½ tsp
  • Garam masala  ½  tsp
  • Dried fenugreek leaves 1 tsp
  • Salt to taste
  • Coriander leaves for garnish

Directions for Making Butter Paneer Masala

Saute Whole Spices In Butter

Firstly, take a pan and pour half a cup of butter into it, then let it melt over medium flame. Once the butter melts, add five cloves and two cardamoms into it. Let them fry until fragrant.

saute spices in butter

Saute Onion, Ginger & Garlic

Then add sliced onions, two cloves of garlic, and an inch of ginger into the pan. Let them saute for 2-3 minutes on medium flame.

saute onion ginger and garlic

Add Tomatoes & Cashews

Then add sliced tomatoes and cashews into the pan. Let them cook until the tomatoes get soft.

Cook tomatoes and cashews

Blend to Smooth Paste

Once all ingredients are soft enough add them to a blender. Then blend to a smooth paste, now the base for the butter paneer is ready. Set it aside for later use.


Heat Butter

Secondly, take another pan and add the remaining half cup of butter to it.  Let it melt over medium heat, then add bay leaf and chopped green chili into it. Let them saute for a minute.

melt butter

Add Spices

Then add spices into the pan. Firstly, add half a teaspoon of turmeric powder, then add one teaspoon of red chili powder, half a teaspoon of coriander powder, half a teaspoon f cumin powder, and half a teaspoon of garam masala, and salt according to your taste. Then mix them to combine together.

add spices

Pour Tomato & Onion Paste

Now it’s time to pour prepared butter paneer paste into the pan. Pour the mixture and cook it for 5 minutes so that paste is infused with spices. Then add a cup of water to obtain the desired consistency.

pour gravy

Pour Cream

Then pour cream into the gravy and cook it for a minute.

pour cream

Add Paneer

Finally, add paneer cubes into the gravy and mix it to well combine. Then cook it over medium-low flame for 5 minutes.

add paneer

Sprinkle Dried Fenugreek Leaves

Then sprinkle dried fenugreek leaves on butter paneer masala and mix it well with the help of a spoon.

add methi

Garnish & Serve

Then dish out the creamy paneer masala in a serving bowl and garnish with coriander leaves and cream. You can serve it with chapati or with steamed rice.

serve Butter Paneer MASALA


  • It will be better if you strain the tomato and onion paste to prevent lumps.
  • You can also fry the paneer instead of adding it in a raw form.
  • Don’t overcook the paste after adding paneer to it.


Indian vegetarian recipes