Feb 19, 2024, Updated Mar 10, 2024

Why You’ll Love This Butter Paneer Recipe

Filled with sumptuous mild spices and fresh ginger, this is one Indian dish that will have even picky eaters coming back for seconds, thirds, and fourths. My kids are obsessed.

Love Butter Chicken? Butter Paneer is the vegetarian version. In fact, most Indian restaurants use the same rich sauce for both dishes. This is arguably one of the most delicious vegetarian Indian recipes.  The rich, silky sauce has a restaurant-worthy (to-die-for) flavor and creamy texture. It is quick, easy and can be easily prepared at home with simple spices that you probably have on hand. The paneer is spiced separately while the sauce is prepared, to soak up maximum rich, delicious flavor.

Serve it with a batch of warm, buttery homemade naan and prepare to fall in love.

Here’s What You Need

Gathering the right ingredients and tools is the first step to making delicious butter paneer. Let’s break it down.

Butter Paneer Ingredients

Let’s make sure our ingredient list is up-to-date with the perfect mix for our butter paneer recipe. Here’s the revised list:

Paneer: The star! These cheese cubes add texture and protein. If you’re feeling adventurous, homemade paneer is the way to go! It’s not that hard to make, and it tastes so much yummier than store-bought paneer. Plus, it’ll make your dish that much more impressive to your guests. Vegetable Oil: Used for marinating paneer and cooking, it’s a neutral base. Lemon or Lime Juice: Adds a bright, acidic touch to the marinade. Garlic: Adds a sharp, aromatic flavor that’s essential. Ginger: Brings a warm, spicy kick. (You could swap in ginger garlic paste for the garlic and ginger) Garam Masala: The heart of the dish, providing warmth and complexity. Turmeric: Offers a beautiful color and a hint of earthiness. Cayenne (or Kashmiri Red Chilli Powder): Adds a spicy kick. Coarse Salt: Balances and enhances all the flavors. Onion: They cook down to golden and mild and provide a natural sweetness to the sauce. They essentially melt right down and become the sauce itself. Paprika: Offers a mild, sweet heat and color. You could use a little red chili powder if you like heat. Cinnamon: A hint of this adds a subtle, sweet spiciness. Diced Tomatoes: I chop up some fresh cherry or grape tomatoes because I always have them on hand. Easier than saving half a can of tomatoes, but either works. Heavy Cream: (Aka whipping cream) has a lush texture and can quickly thicken a sauce. It also adds a decadent richness, making it a key ingredient in this delicious recipe. Butter: A few tablespoons make this recipe silky and lush. Cilantro: Optional, for a fresh garnish.

Note on Indian Spices Used

The garam masala is a blend of spices that replaces the need to source individual coriander powder, turmeric, cinnamon, etc. You can also add red chillies for a spicy kick. Feel free to add a few whole spices, like a few cardamom pods, a bay leaf, a few cloves and/or a whole cinnamon stick if you’ve got them on hand. Adding bit of Kasuri methi made from dried fenugreek leaves lends additional authentic flavor to this paneer butter masala recipe.

Grab these Tools

Having the right tools on hand makes the cooking process smoother. Here’s what you’ll need:

Mixing Bowl: For marinating the paneer. Large Saucepan or Dutch Oven: Ideal for making the sauce and cooking the dish. Immersion Blender: (Optional) For blending the sauce to a smooth puree. A regular blender works too, just be careful with hot liquids. If I’m feeling lazy, I don’t bother with the pureeing step. I don’t mind the texture of the onions.

Variations and Substitutions

A few tweaks to consider.

Coconut Milk: Swap for cream for a lighter option. Halloumi or Firm Tofu: Great substitutes for paneer. They cater to different diets and preferences. Reduced the salt in the recipe if using halloumi, as it’s quite salty. Tofu and cashew cream in combination would make a vegan version.

How to Make Butter Paneer Masala: An Easy Guide

Making restaurant style paneer butter masala is simpler than you might think. Here’s a step-by-step guide to nailing this creamy, comforting dish. Preparing the Paneer First up, let’s get our paneer ready. In a bowl, combine vegetable oil, lemon or lime juice, garlic, garam masala, turmeric, cayenne, and salt. Toss the paneer cubes in this mix gently. Aim for an even coat without breaking the cheese. Marinating paneer like this adds incredible depth before it even hits the sauce. Don’t be put off by this extra bit, it only needs to marinate while you do the other recipe steps.

Prep Your Base

First things first, melt the butter in a large saucepan or dutch oven over medium heat. Then, add the onions. Caramelize onions in a saucepan or dutch oven over a medium flame. This is where an important part of the flavour is developed, so take your time. Cook them slowly until they’re golden. This takes about 20 minutes. If they start to crisp or brown too quickly, just lower the heat.

Add Aromatics and Spices

Once the onions are ready, it’s time for garlic and ginger. Cook them until they’re fragrant, about 1 minute. Then, stir in the spices. Cook for another minute. Warming the Indian spices gently for a few moments develops them more deeply and makes them more fragrant.

Blend in Tomatoes

Next up, add the diced tomatoes. Let everything simmer together for 2 minutes. This step allows them to soften and the flavours to meld. After that, add the cream. Carefully puree the mixture with an immersion blender until smooth. Puréeing the sauce creates a creamy, dreamy smooth and rich gravy. If you’re using a standing blender, do it in batches to avoid any accidents with the steam.

Simmer and Serve Your Butter Paneer

Return the sauce to your saucepan and bring it to a gentle simmer. This is when you add the butter and paneer cubes. Let it cook until just heated through, about 2 minutes. Finally, top your Butter Paneer with cilantro if you like. Now, it’s ready to serve.

Notes about Paneer

Paneer is simply a fresh Indian cheese very similar to strained ricotta. It’s also called Indian cottage cheese. It is chewy, milky, bouncy, and super addictive. Paneer is quite easy to make at home – it’s made simply by adding lemon juice to boiled milk, then straining and pressing. If you want to DIY, you can hop on over to my homemade paneer recipe here – How to Make Paneer at Home: My Foolproof Step-by-Step Guide. If you’re looking for a quicker option, not to worry – it’s pretty easily accessible in most well-stocked grocery stores, and definitely any Indian grocer.

How to Make Store-Bought Paneer Taste Better

Sometimes, store-bought paneer can be a bit bland or rubbery. But don’t worry, I’ve got some tricks to enhance its flavor and texture. Marinate for Flavor Give your paneer a quick marinade. Use spices like turmeric, chili powder, and salt mixed with a bit of oil. Let it sit for at least 30 minutes while you prepare the sauce. This step infuses the paneer with extra flavor and a hint of color. Here’s my guide to How to Marinate Paneer. Pan-Fry for Texture Here’s an optional extra step that I don’t always do, but you certainly can. Pan-frying adds a wonderful texture. Heat a bit of oil in a pan. Once hot, add the paneer cubes. Fry until they’re golden on all sides. This method gives the paneer a crispy exterior with a soft interior. Soak in Warm Water If the paneer feels too firm, try soaking it in a cup of water. Do this for about 20 minutes before cooking. It helps make the paneer softer and more absorbent for flavors. Psst! Don’t miss these 52+ delicious Paneer Recipes.

What to serve with Paneer Butter Masala

Indian Flatbreads: Roti, chapati, butter naan or paratha are all delicious choices for dipping in this yummy masala sauce. Rice: My viral basmati rice recipe went totally viral after my Indian mother-in-law shared her game-changing method. Non-Veg Protein Dishes: Any favourite Indian meat dish with more sauce would complement butter masala well, if you’re hosting a bigger dinner. Try Tandoori chicken, Juicy Beef Kafta, Lamb Vindaloo, Chicken 65 or Lamb Chops in Fenugreek Cream Curry. Vegetables: Serve with Indian coconut green beans, Palak Paneer or Saag Paneer, or Yogurt cucumber salad for a complete, veggie-ful meal.

To make this meal extra special, start with a batch of crispy homemade potato samosas (or my favorite chicken samosa recipe, if you’re not vegetarian).

Make Ahead Butter Paneer Instructions

Make this entertaining-worthy dish ahead of time with this time-saving tip:

Prepare the sauce up to 3 days in advance without adding cream or paneer and refrigerate it in an airtight container. On the day of serving, reheat it until it comes to a gentle simmer then add the paneer cubes and heavy whipping cream.

Just skimming through? Here are some quick answers to the commonly-asked questions.

More Favorite Creamy Indian Recipes

My husband is Indian, so exploring India and Indian food has been a long-time passion. Here are a few more of my love-filled, and flavour-packed creations I think you may like:

Best-Ever Creamy Malai Kofta Madras Lentils with cream sauce Curried Lentils with Coconut Milk Coconut Curry Chicken Chicken Korma

Don’t miss Amma’s Authentic Homemade Indian Chai to sip on while you cook.

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