Creamy Delicious Paneer Makhani (Paneer Butter Masala)

Craving Paneer Makhani (Paneer Butter Masala)? Let me show you how to make this dish in just 30 minutes with our fool-proof step by step recipe. Make this creamy, silky restaurant-style curry in the comfort of your home and impress your guests with this crowd-pleaser. Sharing tips on how to make it nut-free and dairy-free too.

What is Paneer Makhani?

Makhan in Hindi mean Butter. So Paneer Makhani is got another name from the West known Paneer Butter Masala. It is a popular curry from Northern India, where Paneer cubes are dunk in a smoothy, silky and creamy tomato and cashew gravy.

This is my son's favorite and is always on his menu to order every time we dine at an Indian restaurant. I often make a nut-free version at home for him because of his nut allergies, however for the sake of today's post, I am sharing the authentic recipe. We love it with Garlic Naan or Jeera Rice and on special occasions, I pair it with Puri.

I have to admit it took me a few attempts to nail this recipe for the perfect silky, smooth and creamy texture. So I will be sharing all the mistakes I made, so you don't have to make them.

Ingredient Notes

• I used frozen cubed paneer for this recipe, however you can also use homemade Paneer for this recipe. Our homemade Paneer recipe is here.
• When using frozen Paneer, make sure to always thaw paneer before using it. I like to give it a warm water bath.

See recipe card for quantities.

Instructions

Prep - Soak the cashews and if using frozen paneer thaw it in a warm water bath.

• Heat oil in a wok, add a tablespoon of butter allow it to melt and add whole spices - cardamom, cinnamon sticks, bay leaves, whole red chillies. Cook on medium heat until aromatic.
• Add the onions and saute on medium heat until translucent, followed by ginger garlic paste and coriander powder and garam masala. Mix until aromatic.
• Next add the soaked cashews and tomatoes and allow the tomatoes to soften.
• Add salt to taste and water, cover and cook for another 10 minutes.
• Once the onions and tomatoes are cooked. Remove the bay leaves and cinnamon sticks from the wok.
• First scoop out the solid mixture into the blender jar, leaving the juices behind. Blend until smooth and keep the mixture aside.
• In the same wok, heat partial oil and butter again.
• On medium heat, temper with cumin seeds, slit green chillies and ginger juliennes. Stir until aromatic.
• Sieve the mixture. You will have a smooth puree straining out.
• Add Kashmiri Red Chili Powder (for color) and turmeric. Cook on medium heat until the oil starts separating.
• Ensure your sauce is smooth and silky.
• Next add the paneer cubes (thawed if using frozen paneer), followed by hand crushed dry kasuri methi and a drizzle of honey.
• Finish is off with cream and enjoy

Substitutions

• Nut-free : Add cream instead of nuts to get that creamy gravy. That is how I make it when my son is going to consume it. He is allergic to Cashews, however he is fine with almonds. So I add blanched almond flour to thicken that gravy.
• Dairy-free : Skip the dairy and add coconut cream for the creamy texture. You can entirely skip it all together. You can also add tofu instead of paneer.
• Fresh tomatoes : If you are crunched on time, you can add any tomato based pasta sauce or dilute 2 tablespoon of tomato paste with water and add that.

Common Mistakes to Avoid

Sharing some mistakes that I have made in the past, so you don't make them.

Common Mistake	Result	How to fix it
Overcooking Paneer	Paneer becomes chewy	Add paneer just before finishing the dish, cooking the paneer in a tomato gravy makes it chewy.
Skipping Cashews / Cream (for dietary preferences)	Gravy isn't creamy	Make sure to add soaked cashews or almonds to the blender or just add an extra onion to the recipe next time.
Not blending the gravy	Gravy is coarse and granular	Always blend the gravy for a smooth texture.
Not sieving the gravy	Gravy is coarse	Sieving keeps the tomato peels from making the gravy coarse
Adding cream to early	Cream curdles	Add cream in the end and on low heat.

How to serve & pairing suggestions

• Weekday Meal : We love to pair it with roti, raita, baingan bharta and yellow dal.
• Special Occasions : Pair it with Puri, garlic naan, paratha, jeera rice, dal makhani, aloo gobi & gulab jamuns

Storing & Reheating

• Meal Prep : If you want to make this ahead of time or meal prep it, just make the gravy and skip the dairy. Freeze in containers. When you are ready to eat, just thaw the gravy, add the paneer cubes and cream and your all set.
• Leftovers : Store them in an air tight container and refrigerate for a day or two. Best consumed in a couple days.

Final Thoughts

What's not to love about this recipe. It's ready in just 30 minutes, its silky, creamy and oh-so-delicious. When you make it don't forget to take a picture and tag us on Instagram

Pairing

These are my favorite dishes to serve with Paneer Makhani / Paneer Butter Masala: