This rich, creamy, restaurant-style butter paneer is an addictive Indian dish that pairs deliciously with naan or basmati rice. The best part is that this Indian recipe can be made ahead of time and comes together in just under an hour.
If you’re a paneer lover, you will be obsessed with this recipe. Butter paneer, also known as paneer butter masala or paneer makhani, is a classic, creamy paneer dish that can be paired with naan or rice.
This is one of my all-time favorite Indian dishes on the planet. In fact, as a child, I used to order this at every Indian restaurant and literally soak it up with naan – the more the better!
My mom, being the observant mother she is, used to make this for me and my sisters because we couldn’t get enough of it (again, mostly me). She actually used to shred the paneer, which added a whole new layer to the texture of this dish. Regardless, it was delicious.
Butter paneer is often confused with Paneer Tikka Masala, and while both as almost identical, there is one slight difference. Rather than marinating and cooking the paneer prior to adding it to the gravy, butter paneer simply adds the paneer, raw or deep-fried.
In other words, butter paneer is the slightly easier and fast version, which makes it the one dish that you can make ahead of time. On top of that, the gravy ends up getting blended, so you don’t even have to worry about meticulously chopping everything into smaller pieces.
Since you don’t have to do much to the paneer before adding, you can make the gravy ahead of time and add in the paneer before serving.
Butter Paneer is, therefore, an amazing dish for when you are hosting guests. I personally love to pair this up with a fun appetizer, like Paneer Potlis or Samosa Chaat Sandwiches.
Why I Love This Dish
With all of my recipes, I prioritize simple recipes and easy cooking that call for fewer ingredients and even fewer steps to follow. You don’t need a fancy, fully-stocked kitchen to make my recipes – just the basics will do!
This Butter Paneer recipe is one of those so-simple-it-hurts recipes. In fact, the only thing I regret is not making extras. Make sure you double up on the recipe because I promise you, no one will complain about leftover Butter Paneer!
How to Make this Dish Healthier
As always, there are plenty of ways to make this recipe your own or alter it to fit your dietary needs.
Although this dish is already pretty low in fat (I only used heavy cream as a garnish), you can make the Butter Paneer healthier. The gravy is already rich, creamy, and made without any dairy, so feel free to make this whole dish vegan if you like (see notes below).
You can also substitute your jeera or basmati rice with brown rice, or even cauliflower rice, if you want a healthier alternative to pair with the dish.
Butter Paneer Masala
Ingredients
For Gravy
- 2 cups tomatoes roughly chopped, about 4 med size tomatoes
- ½ onion roughly chopped
- ½ cup water
- ¼ cup cashews
- 1 tbsp oil canola , vegetable or even coconut oil
- 1 tsp tomato paste
- ½ tsp garlic grated
- ½ tsp ginger grated
- ¼ tsp cinnamon
- 4 kashmiri chili's
- 2 green chili
- 1 bay leaf
- 1 cardamom
For Paneer Masala
- 1 cup paneer cut into ½ cubes or smaller
- ¼ cup frozen peas
- 3 tbsp butter
- 1 tbsp garlic grated
- 1 tbsp oil
- 1 green chili cut into slits
- ½ tsp red chili powder
- ½ tsp sugar
- ½ tsp salt
- ½ tsp garam masala
- ½ tsp fenugreek
- ¼ tsp cumin seeds
Instructions
For Gravy
- In a large pot, heat up oil and add the onions and green chilies. Once its fragrant add the tomatoes, garlic, ginger, cinnamon, kashmiri chilies, cardamom and bay leaf. Cook for 3-5 mins on med heat and add the water, cashews and tomato paste. The water will help break down the tomatoes, let this simmer for 10-15 mins on med-low heat.
- When gravy is cooked, transfer into a blender and blend into a smooth consistency. Please make sure if your blender can not handle hot liquids, let this mixture cool down for a bit and then proceed to blend. After the gravy mixture is blended set aside.
For Paneer Masala
- Using the same pot from earlier, heat the butter and oil. Next add the cumin seeds and cook until fragrant, add the green chilies and garlic. While the garlic is cooking and before it turns brown (about 1-2 mins) add the gravy.
- Once you add the gravy, turn your stove to low and let this simmer for about 10 mins. After 10 mins add paneer, frozen peas, salt, sugar, red chili powder, and garam masala.
- Once everything is simmered and spices are well incorporated add fenugreek and a splash of heavy cream (optional). Serve with some rice or naan and enjoy!
Notes
- To make this dish vegan, omit the heavy cream and replace the paneer with extra firm tofu and butter with ghee, cooking the tofu will be the same as the paneer.
- Feel free to add more green chilies and red chili powder to your taste.
- While the gravy is cooking I love to throw some rice in my instant pot and cook up some kawan parata.
- I blended the gravy in my blend tec using the “soup” option, which is made for hot liquids,This mixture has to be blended to a very smooth puree. If you do not have a powerful blender then it is good to pass the puree through a strainer. Remember the puree has to be smooth.
- You can make the gravy ahead of time, do not add paneer & cream to it. Cool it down completely & refrigerate as needed in a air tight glass container. Before you want to serve it, heat the gravy with 2 to 3 tbsps of water on med heat until it starts to bubble. Then add paneer & cream, cook for additional 2 mins and garnish with more cream & cilantro.
