Paneer Butter Masala


Paneer is one of the most favorite ingredients for vegetarians. It is rich in protein and if you are not suffering from lactose intolerance, this paneer butter masala recipe can be the best side dish for Indian cuisine (both lunch & dinner). The butterly texture of the dish comes from the butter (that is used along with sunflower oil) as well as the freshly prepared cashew nut paste. You can use fresh cream but cashew nut paste is the best option to get the sweet and butterly texture. Paneer cubes are delicate and thus, you would need to be very careful after putting them into the gravy. Light stirring will keep you safe from turning the dish into a mess. This dish does not need turmeric powder as the soothing orangish color is easily achieved when you sauté the tomato puree properly.

Making use of red and ripe tomatoes will help you get the desired color for the dish. The gravy of the dish needs to be a bit thick and thus you need to simmer carefully to get the right consistency of the gravy. Paneer butter masala can be served as a side dish with fried rice or can be deliciously accompanied with hot roti or with butter or garlic nan.



  1. Start by making the cashew nut paste. You will need to soak them overnight and then make the smooth paste just before cooking. The freshly made cashew nut paste will surely increase the buttery flavor of the dish.
  2. Heat oil and butter in a pan and sauté the bay leaf till it becomes fragrant.
  3. Add minced ginger and garlic and sauté untill fragrant and then add tomato puree.
  4. Stir the mixture and then add Kashmiri chilly powder. Cook till the oil starts to leave the sides of tomato paste.
  5. Put in cashew paste and cook till the oil leaves the sides of the mixture. Add water and stir well. Let the mixture simmer for 5 minutes on low flame.
  6. Put in julienned ginger, green chillies, salt, and sugar and stir the mixture thoroughly. Allow simmering so that the gravy becomes slightly thick.
  7. Now, add the paneer cubes and stir lightly (make sure that you do not break the paneer cubes). Simmer for few more minutes till you have the right consistency of the gravy.
  8. Garnish with garam masala and freshly chopped coriander leaves and serve hot.

 Prepare this wonderful recipe and enjoy with your loved ones. Buy all the required Indian herbs and spices  from India bazaar, your favorite Indian grocery store Sydney!