This Easy Paneer Makhani recipe is a lighter take on the North Indian classic — made without cashews and using coconut milk for a rich, creamy texture. It’s still buttery, still comforting, and still packed with tomato-spice flavor… just a little easier on the dairy. You can purchase paneer at the store or make my 2-ingredient homemade paneer instead!
Or, if you want something even richer, try my Butter Paneer (Restaurant Style) for the full cashew-cream treatment. Or if you’re going fully vegan, you’ll love my Tofu Tikka Masala — same cozy curry vibes, no dairy in sight.
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Keys to Success:
PRO TIP: Don’t skip the fenugreek leaves! Although some of the spices used in this dish are less readily available then the spices you may find at your local grocery store, the investment in fenugreek will be worth it! It adds an earthy and rich flavor to this dish that really can’t be mimicked by another spice or substitute. Fenugreek leaves really elevate the flavor in this dish, and in many other Indian dishes too. It’s one of my favorite secret ingredients.
PRO TIP: Stick to using canned crushed tomatoes in this recipe rather than using fresh tomatoes. Canned tomatoes can be a really useful ingredient since the flavor of the tomatoes is a bit more potent and concentrated. Plus, canned tomatoes are a little sweeter than fresh tomatoes and add the necessary flavor to this dish.
What is the difference between Paneer Makhani, Paneer Tikka Masala, and Butter Paneer?
All three of these dishes are popular in Indian cuisine. They are all relatively similar, but have some differences in terms of preparation, flavors, and ingredients.
(1) Paneer tikka masala is prepared by coating paneer in a spiced yogurt marinade and then grilling it (which is how you make paneer tikka) before adding it to the creamy tomato gravy. This gives the paneer tikka masala a smokier flavor. It’s also typically a bit spicier than butter paneer.
(2) Butter paneer is probably the most common variant you find at Indian restaurants and has a milder flavor profile than a paneer tikka masala because of the cashew paste, butter, and cream content of the dish. Also, instead of grilling the paneer first, it is cooked directly in the gravy. If you’ve ever had butter chicken, this would be the closest substitute!
(3) Paneer Makhani, is basically identical to butter paneer – both are made by cooking paneer in a creamy, spicy, tomato gravy. “Makhan” in hindi, translates to butter so essentially, this is also a butter paneer. For my version, I am substituting the richness of the cashew paste with coconut milk. This adds a mild sweetness and distinct flavor profile to this dish thats amazing!
Garnish + Finishing Touches
I love topping off paneer makhani with extra coconut cream. To get the perfect consistency, make sure to use canned coconut cream and shake it well. Canned coconut milk naturally separates and the thick cream floats to the top. Shaking up the can helps to emulsify the thick cream on top with the thin coconut milk underneath. After shaking, pour some of the coconut milk on top. To thicken it, you can mix a little bit of sour cream into the milk as well; this will help the cream remain on the surface of this dish and gives a beautiful look. I also like to garnish with a little cilantro but that is totally optional.
Looking For More Recipes? Check These Out!
Paneer Makhani is a popular North Indian dish featuring paneer (Indian cottage cheese) cooked in a rich, creamy, and mildly sweet tomato-based gravy. The sauce is made with butter, tomatoes, cream, and a hint of spices, which gives it a smooth and luxurious texture.
Easy Paneer Makhani Recipe (with Coconut Milk)
Ingredients
- 1 c Yellow Onions (finely chopped)
- 1 tbsp Crushed Ginger
- 2 tbsp Garlic (finely chopped)
- 1 c Canned Tomatoes (crushed)
- 1 tbsp Butter
- 1 tsp Cumin Seeds
- 1 tsp Coriander Powder
- 1/2 tsp Garam Masala
- 1/4 tsp Turmeric
- 1/8 tsp Cayenne
- 1 tsp Kashmiri Red Chili Powder
- 3/4 tsp Salt
- 1 tsp Fenugreek Leaves
- 1 can Coconut Milk
- 1 tsp Sugar
- 300 g paneer (cubed)
Instructions
- Add oil to pot and lightly roast cumin seeds over medium heat until fragrant.
- Add in onions and sauté until translucent.
- Add in ginger and garlic and sauté for another minute or so.
- Add in coriander powder, garam masala, turmeric, cayenne, kashmiri chili powder, and fenugreek leaves and cook for about another minute.
- Add crushed tomatoes and salt and simmer for 5-7 minutes and keep mixing well.
- Add in coconut milk, sugar, and your paneer, and then simmer mixture on a low medium heat for 15 minutes.
- Optional: if your mixture is too thick you can add in some water too – start with a 1/4c if needed.
What did you think of this recipe?