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How to Make Restaurant-Style Paneer Butter Masala at Home? (Step-by-Step Guide)

How to Make Restaurant-Style Paneer Butter Masala at Home? (Step-by-Step Guide)

Paneer butter masala with naan at home restaurant style.

Are you craving that rich, creamy, and flavorful paneer butter masala you usually enjoy at your favorite restaurant? Wondering how to make restaurant-style paneer butter masala at home that's just as delicious? You're in the right place!

This mouthwatering North Indian curry, also known as butter paneer curry, is a classic for a reason. It's made with soft paneer cubes, simmered in a velvety tomato-cashew gravy, and loaded with butter and aromatic spices. Whether you're serving guests or treating yourself, this dish never fails to impress.

Let’s explore this flavorful journey together—step-by-step, with tips, FAQs, and all the little secrets to make your homemade paneer butter masala taste like it’s straight from a 5-star kitchen.


⭐ What is Paneer Butter Masala?

Paneer Butter Masala, also known as Butter Paneer or Paneer Makhani, is a popular North Indian curry where soft paneer is simmered in a mildly spiced, buttery, and creamy tomato-based gravy. It's one of the most ordered vegetarian dishes in Indian restaurants across the globe!


🧀 Why You’ll Love This Paneer Butter Masala Recipe

  • ✅ Tastes just like restaurant-style butter paneer

  • ✅ Rich, creamy, and full of flavor

  • ✅ Uses pantry-friendly ingredients

  • ✅ Vegetarian and kid-friendly

  • ✅ Perfect for special occasions or weekend dinners


🛒 Ingredients You’ll Need

Here’s what you need to make authentic paneer butter masala at home:

  • 200g paneer (cut into cubes)

  • 2 tbsp butter (unsalted)

  • 1 tbsp oil

  • 2 large tomatoes (roughly chopped)

  • 1 medium onion (optional, for flavor depth)

  • 10-12 cashews

  • 1 green chili (optional)

  • 1-inch ginger + 3 garlic cloves (crushed)

  • 1/2 tsp turmeric powder

  • 1 tsp red chili powder (adjust to taste)

  • 1 tsp garam masala

  • 1 tsp kasuri methi (dried fenugreek leaves)

  • 1/2 cup fresh cream (or malai)

  • Salt to taste

  • Water as needed


🍳 Step-by-Step Recipe: How to Make Paneer Butter Masala at Home?

Step 1: Prepare the Tomato-Cashew Base

  • In a pan, heat 1 tsp oil.

  • Add chopped tomatoes, onion (if using), cashews, green chili, ginger, and garlic.

  • Sauté for 6–7 minutes or until tomatoes soften.

  • Cool slightly, then blend into a smooth paste.

Step 2: Cook the Gravy

  • In a new pan, heat butter and a little oil.

  • Add the tomato-cashew purée and cook on medium heat for 8–10 minutes until the oil separates.

  • Add turmeric, red chili powder, salt, and a splash of water if needed.

Step 3: Add Paneer and Finish

  • Gently stir in the paneer cubes.

  • Add cream and garam masala. Stir well.

  • Crush kasuri methi between your palms and sprinkle it in.

  • Let it simmer for 2–3 minutes. Turn off the heat.


🍽️ How to Serve Paneer Butter Masala?

Wondering what to eat with paneer butter masala? Here are some tasty pairings:

  • Soft naan, garlic naan, or tandoori roti

  • Steamed basmati rice or jeera rice

  • Laccha paratha or plain paratha

  • Even a bowl of warm quinoa if you're feeling healthy!


❓ Frequently Asked Questions (FAQs)

Can I make paneer butter masala without onion and garlic?

Yes! Simply skip the onion and garlic. The tomato-cashew base will still give it a rich, flavorful taste.

How do I make vegan paneer butter masala?

Use tofu instead of paneer, coconut cream instead of dairy cream, and vegan butter or oil.

How to make restaurant-style paneer butter masala more creamy?

Use a generous amount of cream and cashews. You can also add a spoon of milk powder or malai for extra richness.


💡 Pro Tips for the Best Butter Paneer

  • Always use fresh paneer for the softest texture. You can even soak it in warm water for 5 minutes before adding to the gravy.

  • Don’t overcook the paneer—it may turn chewy.

  • Add a tiny bit of sugar or honey to balance the tang of tomatoes.

  • Want a smoky flavor? Use the dhungar method (charcoal smoke) for a restaurant-style aroma.


🥄 Final Thoughts

If you’ve ever asked yourself, “How can I make the best paneer butter masala at home?”, now you have the answer. This dish is not just comforting and indulgent—it’s a celebration of rich Indian flavors in every bite.

Give it a try and let your kitchen smell like an Indian restaurant tonight! 💛


Have you tried this recipe? What do you like to pair your paneer butter masala with?
Tell us in the comments or share your photos with us on Pinterest or Instagram!

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