This Butter Paneer recipe (aka paneer butter masala) is ultra-rich, creamy, and straight out of the restaurant playbook. It’s made with cashews, cream, butter, and plenty of bold Indian spices — perfect for scooping up with soft naan or spooning over fluffy basmati rice.
Looking for something lighter? Try my Paneer Makhani with Coconut Milk for a dairy-light, cashew-free twist. Or if you need a fully plant-based option, check out my Tofu Tikka Masala — it’s vegan, protein-packed, and just as satisfying.
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What is Paneer?
Paneer is a common ingredient in Indian dishes like this paneer butter masala; it is essentially a firm cottage cheese that doesn’t melt upon heating like other cheeses. The texture resides somewhere between a block of firm cheese and tofu, and is similar to halloumi. You can purchase paneer at the store or make my 2-ingredient homemade paneer instead!
How Do I Get the Perfect Creamy Texture?
The secret to the perfect paneer butter masala is the thick creamy texture which comes from cashews. The key is to let the cashews simmer in the dish for 25-30 minutes so that when you blend the sauce with your immersion blender, the cashews will emulsify a lot easier.
Paneer Butter Masala – Ingredient Breakdown:
If you want to make the best paneer butter masala, make sure you have the following ingredients:
- Butter
- Onions
- Ginger
- Garlic
- Garam Masala
- Kashmiri Red Chili Powder
- Cumin Powder
- Turmeric
- Fenugreek Leaves
- Pureed Canned Tomatoes
- Cashews
- Cream
- Paneer
How to Make Paneer Butter Masala
- To make your dish, start by sautéing your onions over a medium heat in the butter until they they turn translucent.
- Add in your chopped garlic and ginger and cook for another minute or so.
- Add in all of your spices and cook for another minute. You may want to turn the heat slightly down to make sure the spices don’t burn. Cook until aromatic.
- Then, add in canned tomatoes, salt, and cashews, and let the mixture simmer for 5-7 minutes.
- Add in water, bring to simmer, cover your mixture with a lid, and let cook for 25-30 minutes.
- Wait for the mixture to cool down, and then mix with an immersion blender.
- Strain your blended mixture through a sieve to remove all excess cashew pulp.
- Add in your cream, paneer, and sugar, and extra water if needed.
- Let mixture simmer for another 10 minutes until paneer is nice and soft.
- Finally, garnish your paneer butter masala with cilantro and more cream.
Looking For More Recipes? Check These Out!
It’s important to use canned coconut milk (preferably full fat) to add the right thick creaminess to this dish. The coconut cream that I mentioned earlier will be the perfect vegan substitute for regular cream; and, paneer can be substituted with baked tofu. I usually bake my tofu at 350 degrees for 30 minutes when I use it in a dish like this. Just chop the tofu into cubes and spread apart on parchment paper before placing into the oven.
If you don’t have an immersion blender, feel free to use a regular blender for your paneer butter masala instead. However, make sure the mixture has completely cooled down before popping it into your blender!
Butter Paneer
Ingredients
- 3 tbsp Butter (I used vegan earth balance butter)
- 1 c Onions Finely chopped
- 1 tbsp Ginger Crushed/finely chopped
- 1 tbsp Garlic Finely chopped
- 1 tsp Garam Masala
- 1.5 tsp Kashmiri Red Chili Powder
- 1 1/4 tsp Cumin Powder
- 1/4 tsp Turmeric
- 1 tsp Fenugreek Leaves
- Salt (To taste)
- 1 c Pureed Canned Tomatoes
- 25 Cashews
- 1/2 c Cream (Use coconut cream for vegan version)
- 300 grams Paneer (Approximately)
- 1 tsp Sugar (Optional)
- 1 c Water
Instructions
- Start by sautéing your onions in the butter until they they turn translucent. Make sure to keep your heat on medium.
- Add in your chopped garlic and ginger and cook for another minute or so.
- Add in your garam masala, chili powder, cumin powder, fenugreek leaves, and turmeric and cook for another minute. You may want to turn the heat slightly down to make sure the spices don't burn. Cook until aromatic.
- Add in canned tomatoes, salt, and cashews. Let simmer for for 5-7 minutes.
- Add in water, bring to simmer, cover your mixture with a lid, and let cook for 25-30 minutes. Make sure to keep checking on the mixture every 5 minutes or so to give it a stir and ensure it doesn't stick/burn.
- Wait for the mixture to cool down, and then mix with an immersion blender, or pop into a regular blender. Do not pour a hot mixture into your blender!! It has to be fully cooled.
- Strain your blended mixture through a sieve to remove all excess cashew pulp.
- Add in your cream, paneer, and sugar, and extra water if needed.
- Let mixture simmer for another 10 minutes until paneer is nice and soft.
- Garnish with cilantro and more cream.
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