Paneer Butter Masala Recipe: Silky, Creamy and Restaurant-Style

By Aldergrove Indian Bistro · Published 2026-10-20

Paneer butter masala is soft paneer cubes in a rich, mildly sweet tomato-butter sauce made silky with cashews and cream. It is the vegetarian counterpart to butter chicken, and one of the most requested dishes at any Indian buffet. This recipe serves 4.

Prep: 15 minutes | Cook: 30 minutes | Serves: 4

Ingredients

  • 300 g (10 oz) paneer, cubed
  • 3 tbsp butter and 1 tbsp oil
  • 1 onion, roughly chopped
  • 4 ripe tomatoes (or 1 cup tomato puree)
  • 10 raw cashews, soaked in warm water for 15 minutes
  • 1 tbsp ginger-garlic paste
  • 1 tsp Kashmiri chili powder, 1 tsp coriander powder, 1 tsp garam masala
  • 1 tsp salt and 1 tsp sugar
  • 1/2 cup cream
  • 1 tbsp kasuri methi

Method

  1. Heat 1 tbsp butter with the oil. Cook the onion for 5 minutes, then add the ginger-garlic paste for 1 minute.
  2. Add the tomatoes, cashews, chili powder, coriander and salt. Cover and cook for 12 to 15 minutes until the tomatoes collapse.
  3. Cool slightly and blend into a very smooth sauce. Strain for a restaurant-silky finish if you like.
  4. Return the sauce to the pan with the remaining butter, sugar and 1/2 cup water. Simmer for 5 minutes.
  5. Add the paneer, garam masala and kasuri methi. Simmer 5 minutes, then stir in the cream.

Tips

  • Soak the paneer in warm salted water for 10 minutes for softer cubes.
  • Cashews build creaminess without making the sauce heavy.
  • If the sauce is too tangy, add a little more sugar or cream.

Variations

  • Spicier: add a slit green chili or extra chili powder.
  • Lighter: replace cream with milk or cashew cream.
  • Protein swap: use tofu or chickpeas.

What to serve with it

Butter naan, basmati rice and a simple cucumber raita. Add a daal or a dry vegetable such as aloo gobhi for a full meal.

Order it

Paneer Butter Masala is on the menu at Aldergrove Indian Bistro. It is also a staple of our live and delivery catering menus across Langley, Abbotsford, Mission and Chilliwack.

FAQ

What is the difference between paneer butter masala and shahi paneer? Paneer butter masala has a tomato-forward butter sauce. Shahi paneer is usually richer, creamier and built on cashew and onion.

Can I make it ahead? Yes. Make the sauce a day ahead and add the paneer when reheating.

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