Paneer Butter Masala
Paneer Butter Masala is a beloved dish that combines the rich, creamy goodness of butter and cream with the delicate flavors of paneer—Indian cheese. This dish features a smooth, flavorful tomato gravy that envelops the paneer, creating a perfect balance of taste and texture. When served alongside warm naan or steaming basmati rice, this classic Indian dish enchants everyone, from novices to seasoned diners alike.
Table of Contents

I first discovered Paneer Butter Masala during a family gathering, where the enticing aroma wafted through the air, luring us to the dining table. It’s amazing how a simple combination of ingredients can yield such a decadent dish that feels both comforting and luxurious at the same time. The subtle blend of spices and the creaminess of the sauce make it an instant crowd-pleaser, destined to elevate any occasion.
Why You’ll Love This Recipe
- Simple & Quick: This flavorful miracle can be ready in under an hour, perfect for a busy weeknight!
- Irresistible Flavor: Enjoy the creamy, buttery sauce that envelops tender paneer—every bite sings with spices!
- Eye-Catching Appeal: With its rich, inviting color and garnishes, it’s bound to be the star of your table.
- Flexible Serving: Ideal for family dinners, potlucks, or date nights—it’s the perfect no-fail recipe to impress!
- Diet-Friendly Options: Easily adaptable for vegetarian and gluten-free diets, ensuring everyone can dig in.
Ingredients You’ll Need
- 2 cups basmati rice (This fragrant long-grain rice pairs beautifully with the rich sauce and soaks up all the flavor.)
- 3 cups water (Essential for cooking the rice perfectly.)
- ½ teaspoon salt (Enhances the flavor of the rice without overpowering it.)
- 1 gallon whole milk (The base for your homemade paneer, lending creaminess to the dish.)
- ⅔ cup lemon juice or white vinegar (Necessary for curdling the milk to make paneer—use fresh lemon juice for a brighter taste.)
- Cold water (to rinse curds) (To reduce acidity from the lemon juice or vinegar after making paneer.)
- Neutral oil or ghee for searing (This helps achieve that lovely golden crust on the paneer.)
- 6 tablespoons butter, divided (Adds richness to the sauce—use unsalted for better control over seasoning.)
- 1 tablespoon neutral oil (Helps in sautéing onions without altering the flavor.)
- 2 medium onions, finely chopped (Provide sweetness and depth to the sauce.)
- ¼ cup ginger-garlic paste (A staple in Indian cooking, provides a punch of flavor.)
- 3 cups tomato purée (Use canned San Marzano or fresh ripe tomatoes for a naturally sweet and bold sauce.)
- 1 tablespoon Kashmiri red chili powder (Gives beautiful color and a mild heat; adjust to taste.)
- 2 teaspoons ground coriander (Adds earthy warmth to the dish.)
- 2 teaspoons salt (Adjust based on your taste preferences.)
- 2 teaspoons sugar (Balances acidity from the tomatoes; adjust to your liking.)
- 2 cups vegetable stock (Creates a luscious gravy; can be substituted with water if needed.)
- ¾ cup heavy cream (Infuses the dish with richness and creaminess—adds to the luxurious texture.)
- 2 teaspoons kasuri methi, crushed (Dried fenugreek leaves contribute a unique aroma—don’t skip this!)
- 2 teaspoons garam masala (The final touch that enhances the dish with aromatic spices.)
- Butter naan, warmed and brushed with butter (Perfect for scooping up that delicious gravy.)
- Red onion, thinly sliced (Adds a refreshing crunch and sharpness.)
- Lemon and lime wedges (A squeeze brightens up the dish beautifully.)
- Heavy cream for drizzling (Optional but creates an impressive presentation.)
- Warm ghee for finishing (Final touch of richness—adds a lovely aroma.)
How to Make Paneer Butter Masala
- Rinse the Basmati Rice: Under cold water, rinse the basmati rice until the water runs mostly clear. This helps to remove excess starch for fluffier rice.
- Cook the Rice: In a rice cooker, add the rinsed rice, 3 cups of water, and ½ teaspoon of salt. Cook using the white rice setting. Alternatively, bring to a boil in a pot, cover, reduce heat, and simmer for about 15 minutes.
- Fluff and Keep Warm: Once cooked, fluff the rice gently with a fork to separate the grains and keep warm.
- Make the Paneer: In a large pot, bring 1 gallon of whole milk to a gentle boil over medium heat; stir occasionally to prevent scorching. Once boiling, reduce heat and slowly stir in ⅔ cup of lemon juice or white vinegar until curds form.
- Strain the Curds: Pour the mixture through a cheesecloth into a sieve, rinsing the curds with cold water to wash out acidity. Gather the curds and press lightly in the cloth for about 10-15 minutes if you prefer soft paneer; press overnight for a sturdier cheese.
- Cut the Paneer: Remove from the cloth, transfer to a cutting board, and cut into large cubes.
- Sear the Paneer: Heat neutral oil or ghee in a medium skillet over medium heat. Lightly sear the paneer cubes until golden on the edges, then transfer them to a paper towel to drain.
- Sauté Onions: In a wide pan, heat 2 tablespoons of butter and 1 tablespoon of neutral oil over medium heat. Add the finely chopped onions and cook low and slow until soft and translucent, about 8 minutes—avoid browning.
- Add Ginger-Garlic Paste: Stir in ¼ cup of ginger-garlic paste and sauté until fragrant, about 30 seconds.
- Prepare the Sauce: Add 3 cups of tomato purée, 1 tablespoon of Kashmiri red chili powder, 2 teaspoons of ground coriander, 2 teaspoons of salt, and 2 teaspoons of sugar, stirring well to combine.
- Cook Down: Reduce heat and let the mixture cook until the sauce thickens, darkens, and the oil begins to separate at the edges.
- Blend for Smoothness: If desired, use an immersion blender to blend the sauce until smooth for a velvety texture.
- Loosen the Gravy: Stir in 2 cups of vegetable stock, gently simmering for about 20 minutes, allowing the flavors to meld beautifully.
- Add Cream and Seasonings: Pour in ¾ cup of heavy cream and stir in 2 teaspoons of crushed kasuri methi, mixing until incorporated.
- Finish the Flavor: Add the remaining 4 tablespoons of butter and 2 teaspoons of garam masala, ensuring it becomes fragrant and flavorful.
- Incorporate the Paneer: Carefully immerse the seared paneer into the sauce, simmering for an additional 2-3 minutes. Avoid overcooking; you want the paneer to remain soft.
- Warm the Naan: Heat the butter naan in a dry pan or oven, brushing with more butter as you like.
- Prepare Garnishes: Thinly slice the red onion and cut lemon and lime into wedges for serving.
- Plate the Dish: Ladle Paneer Butter Masala into shallow bowls, drizzling a cream spiral and finishing off with a small ghee swirl.
- Serve with Love: Present your delicious creation with cooked basmati rice, naan, sliced onions, and citrus wedges for a lovely meal.
Storing & Reheating
Store any leftovers in an airtight container in the refrigerator for up to 3 days. To freeze, transfer to a freezer-safe container, allowing for expansion, and store for a maximum of 3 months. When reheating, gently warm it on the stove over low heat to avoid boiling; add a splash of water or cream to maintain the sauce’s creamy texture. Keep in mind that freezing may slightly alter the paneer texture, so it’s best enjoyed freshly made.
Chef’s Helpful Tips
- Ensure to rinse the rice thoroughly to rid it of excess starch, making a fluffier final product.
- Cook the onions low and slow for optimal sweetness; don’t rush this step!
- If the paneer gets too soft on simmering, reduce the cooking time for the cubes.
- Adding a pinch of brown sugar enhances the sauce’s flavor; taste as you go!
- For a make-ahead option, prepare the sauce a day in advance and add freshly seared paneer just before serving.
Paneer Butter Masala is not just a dish; it’s an experience that brings warmth and comfort to your table, inviting everyone to gather and indulge. Whether you’re cooking for loved ones or treating yourself after a long day, this recipe holds the power to comfort and satisfy. Don’t hesitate to try your hand at creating this quintessential Indian masterpiece; exploration in the kitchen is part of the fun! Enjoy every bite, and perhaps experiment with additional spices or herbs to make it uniquely yours!

Recipe FAQs
Can I use store-bought paneer for this recipe?
Absolutely! Store-bought paneer can save you time. Just make sure to cut it into cubes and lightly sear for a golden finish before adding it to the sauce.
How can I make this dish vegan?
To make a vegan version of Paneer Butter Masala, substitute paneer with tofu or vegan cheese. Use coconut cream or cashew cream in place of heavy cream, and ensure your vegetable stock is vegan-friendly.
Is Paneer Butter Masala spicy?
The level of spice really depends on your taste preferences! Kashmiri red chili powder is milder compared to regular chili powder, so you can easily adjust the quantity if you prefer a less spicy dish.
Can I make this dish in advance?
Yes! You can prepare the sauce a day ahead and store it in the refrigerator. When ready to serve, reheat the sauce, add freshly seared paneer, and enjoy. This enhances the flavors beautifully!
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📖 Recipe Card

Paneer Butter Masala
- Prep Time: 30 minutes
- Cook Time: 45 minutes
- Total Time: 1 hour 15 minutes
- Yield: 6 servings 1x
- Category: Main Dishes
- Method: Stovetop
- Cuisine: Indian
Description
Paneer Butter Masala combines creamy tomato sauce with aromatic spices for a burst of flavor. Perfect for a quick dinner or comforting meal, it’s loved by everyone!
Ingredients
- 2 cup (400 gram) basmati rice
- 3 cup (700 milliliter) water
- ½ teaspoon (3 gram) salt
- 1 gallon (3.79 liter) whole milk
- ⅔ cup (150 milliliter) lemon juice or white vinegar
- cold water, to rinse curds
- for searing: neutral oil or ghee
- 6 tablespoon (85 gram) butter, divided
- 1 tablespoon (15 milliliter) neutral oil
- 2 medium onion, finely chopped
- ¼ cup (60 gram) ginger-garlic paste
- 3 cup (700 milliliter) tomato purée
- 1 tablespoon (8 gram) kashmiri red chili powder
- 2 teaspoon (4 gram) ground coriander
- 2 teaspoon (12 gram) salt
- 2 teaspoon (8 gram) sugar, or to taste
- 2 cup (475 milliliter) vegetable stock
- ¾ cup (177 milliliter) heavy cream
- 2 teaspoon (1 gram) kasuri methi, crushed between palms
- 2 teaspoon (4 gram) garam masala
- butter naan, warmed and brushed with butter
- red onion, thinly sliced
- lemon and lime wedges
- heavy cream
- warm ghee
Instructions
- Rinse the basmati rice under cold water until it runs mostly clear.
- In a rice cooker, add the rinsed rice, water, and salt, then cook using the white rice setting. If using a pot, combine ingredients, bring to a boil, cover, reduce heat, and simmer for 15 minutes.
- Fluff the rice gently with a fork, cover, and keep warm.
Notes
You can adjust the spice level by varying the amount of kashmiri red chili powder.
Serve with butter naan for a complete meal!
Make sure to use fresh tomato purée for the best flavor.
Nutrition
- Serving Size: 1 serving
- Calories: 450
- Sugar: 5g
- Sodium: 720mg
- Fat: 28g
- Saturated Fat: 15g
- Unsaturated Fat: 12g
- Trans Fat: 0g
- Carbohydrates: 40g
- Fiber: 2g
- Protein: 12g
- Cholesterol: 90mg
