How to Make Delicious Homemade Paneer Butter Masala

Paneer Butter Masala is a rich, creamy, and flavorful North Indian dish that is loved by people of all ages. This restaurant-style dish features soft paneer cubes cooked in a luscious, buttery tomato-based gravy infused with aromatic spices. It pairs perfectly with naan, roti, or jeera rice.

If you want to make perfect paneer butter masala at home, follow this detailed step-by-step recipe to achieve a creamy, flavorful, and mouthwatering dish.

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Ingredients

For the Gravy:

• 2 tablespoons butter
• 1 tablespoon oil
• 2 large onions (chopped)
• 3 large tomatoes (chopped)
• 1 tablespoon ginger-garlic paste
• 10-12 cashew nuts (for creaminess)
• 1 green chili (optional, for extra spice)
• 1 teaspoon cumin seeds
• 1 teaspoon red chili powder
• 1 teaspoon turmeric powder
• 1 teaspoon coriander powder
• 1 teaspoon garam masala
• ½ teaspoon kasuri methi (dried fenugreek leaves)
• ½ cup fresh cream
• ½ cup milk (optional, for extra richness)
• Salt to taste

For the Paneer:

• 200 grams paneer (cubed)
• 1 tablespoon butter (for sautéing)
• 1 teaspoon Kashmiri red chili powder (for color)

For Garnishing:

• Chopped coriander leaves
• Fresh cream (for drizzling)

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Step-by-Step Instructions

Step 1: Preparing the Base Gravy

1. Heat 1 tablespoon of butter and 1 tablespoon of oil in a pan over medium heat.
2. Add cumin seeds and let them splutter.
3. Add chopped onions and sauté until they turn golden brown.
4. Stir in ginger-garlic paste and cook until the raw smell disappears.
5. Add chopped tomatoes, cashew nuts, and green chili (if using).
6. Cook until the tomatoes turn soft and mushy.
7. Let the mixture cool down slightly, then blend it into a smooth puree.

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Step 2: Cooking the Gravy

1. In the same pan, melt 1 tablespoon butter and pour in the blended tomato-onion paste.
2. Cook for 5-7 minutes, stirring occasionally, until the gravy thickens.
3. Add turmeric powder, red chili powder, coriander powder, and salt. Mix well.
4. Pour in ½ cup of milk (optional) or water to adjust the consistency.
5. Simmer for 5 minutes until the gravy turns smooth and creamy.

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Step 3: Cooking the Paneer

1. Heat 1 tablespoon butter in a small pan.
2. Lightly sauté the paneer cubes for 2 minutes until they turn slightly golden.
3. Sprinkle Kashmiri red chili powder to enhance the color.

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Step 4: Bringing It All Together

1. Add the sautéed paneer cubes to the prepared gravy and mix gently.
2. Stir in garam masala and kasuri methi for a rich, aromatic flavor.
3. Pour in fresh cream and give it a final mix.
4. Cook for 2 more minutes and turn off the heat.

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Step 5: Serving the Paneer Butter Masala

• Garnish with fresh coriander leaves and drizzle some extra cream on top.
• Serve hot with butter naan, tandoori roti, or jeera rice for a complete meal.

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Tips for the Best Paneer Butter Masala

✔ Use fresh and soft paneer for the best texture. If store-bought, soak it in warm water for 10 minutes before using.
✔ Blend the gravy well for a smooth, restaurant-style texture.
✔ Adjust spice levels according to your taste by adding or reducing chili powder.
✔ For a richer taste, add a little more butter or cream at the end.
✔ Don’t overcook the paneer, or it will become chewy.

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Variations & Customizations

• Vegan Version: Replace paneer with tofu and use coconut cream instead of dairy cream.
• Healthier Version: Skip the cream and use blended cashews or Greek yogurt for creaminess.
• Spicy Version: Add more green chilies and extra garam masala for a fiery taste.

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Why You’ll Love This Recipe

✅ Easy to make at home
✅ Restaurant-style creamy texture
✅ Rich, buttery, and flavorful
✅ Pairs well with different Indian breads and rice dishes

Try this homemade Paneer Butter Masala today and enjoy the perfect balance of spices, creaminess, and deliciousness in every bite!

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