You are going to want to swim in this creamy and buttery sauce…
Paneer butter masala might be the most popular paneer dish ever. If you haven’t heard of it, think soft paneer in a creamy and buttery, well-spiced, tomato-based sauce. You may also know this dish by another name: paneer makhani.
Paneer butter masala is similar to my popular butter chicken recipe and my butter chickpeas recipe, but it’s also a bit different in that I add cashews to this sauce. I like adding cashews to this paneer dish – it makes the sauce a little thicker and a little richer. If you don’t like cashews, you can use almonds or leave it out if you want.
The great thing about this dish is that it’s so simple to make, especially if you have my pre-made onion masala handy. You just heat the ingredients and add the paneer. Simple and tasty.
This recipe is part of my onion masala series called: Onion Masala LOVE. This series started with me sharing recipes using this masala throughout February, but it has been so popular that I’m going to keep it going as long as there’s interest! My goal: to show you how easy it is to prepare Indian food daily.
Click on the image below to find out how to make onion masala, store it, and find other recipes that call for it!
I like using onion masala in this recipe because it adds a lot of flavor, and there’s also no need to cook down the tomatoes. If you don’t have onion masala handy, then you can try using canned tomato sauce as that’s already cooked down though I haven’t tested it this way for the blog.
Nowadays I typically use store-bought paneer because it’s so easy to find at my local Indian store. I’ll share a recipe for homemade paneer sometime over the summer though!
Serve this paneer makhani with Indian flatbread or basmati rice.
To make this more of a complete meal, add one or two of these dishes too: chana masala or aloo methi or veggie biryani or aloo baingan masala or this Indian bean salad 🙂
Paneer Butter Masala (Paneer Makhani)
Yield: 4–5 1x
Print Recipe
Pin RecipeIngredients
- ½ cup water
- ¼ cup unsalted/raw cashews
- 2 tablespoons ghee or butter
- 1 ¼ cups (frozen or thawed) onion masala
Spices
- 1 teaspoon garam masala
- 1 teaspoon paprika or kashmiri chili (for color)
- ¾ teaspoon salt, adjust to taste
- ¼ teaspoon cayenne, adjust to taste
- Pinch of dried fenugreek leaves (kasoori methi
- 1 (14 ounce) block Paneer, cubed
- 2 tablespoons heavy cream OR full-fat (unsweetened) coconut cream, to taste
Instructions
- Add the water and cashews to a blender and blend until smooth. Set aside for now.
- Add the ghee, onion masala and spices to a saucepan over low heat and allow it to simmer for a couple minutes (if using frozen masala then simmer until the masala melts).
- Pour the blended cashews into the saucepan along with the paneer and cook until the paneer is heated through.
- Stir in the cream and serve.
Notes
- This recipe is part of my onion masala series – be sure to check it out!
Hey Ashley,
Tried this recipe today and it turned out to be perfect. Well received by the family at dinner table!
Thanks for sharing.
– Kishan
Kishan, I’m so happy to hear that! Thanks for letting me know how it turned out for you and your family 🙂
This was so easy and fantastic! The entire family loved it. A new family favorite. Thank you
★★★★
Karen, so happy to hear that! Thanks for letting me know how it turned out for you 🙂
Amazing. Family loved it!!
★★★★★
Sam, so happy to hear that!! Thanks for letting me know how it turned out for you 🙂
Hi Ashley – I’ve just discovered your blog and I’m so excited to try your recipes. Do you happen to have an instant pot version of this one, or an easy formula for converting regular recipes to instant pot? Thank you!
Hi! Paneer really doesn’t need to be pressure cooked and the onion masala is already cooked so if you still want to make this in an IP then I’d just do everything on saute mode 🙂 Hope that helps!
Hi Ashley, if I do not have onion masala already made, then what’s the quantity of onion, ginger, garlic, tomato to saute? Thanks!
Hi Ashley – My nephew is allergic to nuts/cashews what can I use in its place?
Hi Ashley – I would like to make this recipe for 12 people for a Diwali party. Any recommendation on how to adjust measurements? Thanks
I would triple the recipe for a party with that many people – I hope everyone loves it!
Amazing recipe.. My family loved it and it’s really easy to prepare.
I’m so happy to hear that! 🙂
Ohhh so good!! Thanks Ashley!!
★★★★★
Stephanie, I’m so happy to hear that you liked it! Thanks for letting me know how the paneer butter masala turned out for ya 🙂
I love your onion masala and this is my favorite recipe to make with it. It tastes amazing!! Thank you so much for your recipes. 🙂
Melanie, I’m so happy to hear that you like the onion masala and this paneer recipe! Thanks for letting me know how much you 🙂
Melanie, I’m so happy to hear that you like the onion masala and this paneer recipe! Thanks for letting me know how much you like it 🙂
Hi Ashley, I live in UK and we don’t use cups here. Any idea how much 1 cup of onion masala is, in grams? Many thanks 🙂
One word: WOW! This recipe rocks. I made a big batch of onion masala and had about a cup and just a smidge more than a quarter that wouldn’t fit in my freezer, so I decided to try this.
And it’s amazing!! I did make it with the cashews. I didn’t have any heavy cream or coconut milk/cream, so I subbed a heaping spoonful of Greek yogurt mixed with enough milk to make it “cream-like”… and it was phenomenal. The closest taste-match I have ever gotten to my favorite Indian restaurant. I am already dreaming of leftovers… I anticipate I will make this again sooner than I should!
★★★★★
Lee, that’s so awesome to hear! Thanks for letting me know how much you liked the paneer!
Thanks for letting us know the substitute of cream. I had everything except fresh cream today for this recipe. And I added plain yogurt & milk at the end. It just completed the recipe. Delicious!
This recipe is so easy to make…. had 2 vegetarian friends drop in on superbowl sunday without much advanced notice and i made this recipe with firm tofu (coz I didnt have any paneer on hand) and they loved it. I served this along with Ashley’s lemon rice. Dinner was ready in 30 mins and it was delicious… I am now out of onion masala and that’s my weekend activity
★★★★
Jenita, that’s so great to hear! Good to know it works well with firm tofu!
Thanks for sharing this delicious Paneer recipe. I am not a good cook but your recipes make me feel so proud of myself. Made this recipe for our housewarming party & guests loved it. They actually took some leftovers with them. Super delicious & so quick to make. Thanks for making our lives easier with onion masala preparation too!
★★★★★
Gitali, that makes me so happy to hear 🙂 Thank you so much for letting me know how much you and your guests liked this recipe!
Hi Ashley, I never leave comments, EVER! But you have changed my life. My husband and I work full-time, have no family around, and have a lovely toddler at home. As vegetarians (and kids-at-heart who miss their mothers’ cooking), we just can’t survive without Indian food. We tried, but ended up eating variations of pizza/pasta and never felt satiated. I also had an instant pot, but couldn’t get the hang of it and hated scrolling the internet for recipes that may or may not work.
Your masala series changed my life. It tastes like mom’s food, it’s SOOOO easy, and super quick. Currently, we are stuck at home during the pandemic, which means more meals together, I can’t rely on outsourced food or social eating, and we need variety. Luckily I made/froze masala before it fully hit and am pretty much using the masala series full-time. For example, after a crazy day at work and balance a child at home, I was able to throw minimal ingredients in the instant pot for langar dal and still go for a walk with my family before dinner. I couldn’t have done it without you. Keep adding to the series and then publish, I’ll be the first to buy that cookbook 🙂
Hi Deepi! Thank you so much for taking the time to leave me a comment and for the kind words! I’m so glad you’re enjoying the onion masala series and that you’re finding it helpful during these tough times. I hope you and your family are doing well!
wow this was absolutely amazing, just like everything else I’ve tried on your website! Ashley you are just incredible for sharing all of these recipes and I am sooo thankful I found your site. It’s the only site I go to now for indian food. Your recipes are spot on and easy! Whenever someone gives me credit for something I’ve made, I ALWAYS tell them to check out your blog. Thank you thank you thank you!
★★★★★
Mary, that’s so great to hear! Thank you so much for the kind words and for sharing my blog with others – I appreciate it so much 🙂
This is a wonderful recipe, and easy once you have the onion masala! I even made my own paneer, so it’s extra-homemade 😉
★★★★★
Dagmara, I’m so happy to hear that! Love that you made your own paneer – yum!
Hi!
Does this serve 4-5 people more as a side dish, or as an entree?
Thanks!
Paneer is pretty filling so I’d say an entree but would also suggest serving a side with it as well.
Could you make this with chicken instead of paneer?
I am so happy I stumbled on the onion masala recipe.
Once you have the onion masala, making the paneer makhani is absurdly easy and quick. It only took about 10 minutes to put together. And it has better depth of flavor than other makhani recipes I’ve tried.
I can’t wait to try the other onion masala recipes.
★★★★★
I’m so glad you found the onion masala recipe too! Glad you liked this paneer dish so much 🙂 Let me know what you think of other onion masala recipes that you try!
Hi Thanks for the recipe. Can i use cashew butter instead of Cashew and water blend?
Hi Gouri, I’ve tried cashew butter as a substitute for blended cashews and water, but for some reason, the taste isn’t quite the same. If you try it though, let me know what you think!
Can this be frozen if the paneer is had been frozen and is now defrosted?
Random question: I’m not a fan of the hassle of frying anything in oil, but I feel like paneer recipes just aren’t the if not fried. Have you ever tried air fryer paneer????
Hi Vidya, you’ll never go wrong taking the extra step to pan-fry paneer though I normally skip this step when making a curry. I do suggest pan-frying paneer when using it in a recipe like my palak paneer or my Indo-chinese paneer I haven’t tried air-frying paneer – let me know how that goes if you try!