Paneer Butter Masala Recipe - Creamy Indian Curry

Paneer Butter Masala is a rich and creamy Indian curry that showcases paneer cubes in a beautifully spiced tomato-based gravy. The combination of aromatic whole spices, yogurt, and kasuri methi creates a dish that is both comforting and sophisticated.

By RujulIndian Cuisine4 servings40 min
Paneer Butter Masala — Paneer Butter Masala served with naan

About This Recipe

This recipe is a personal favorite, combining the creaminess of paneer with a perfectly balanced spice blend. The key to this dish is the generous use of garlic and the finishing touch of kasuri methi, which adds a distinctive earthy flavor that elevates the entire dish.

History & Origin

Origin: Paneer Butter Masala is a North Indian dish that originated in the Punjab region. It is a restaurant-style curry that became popular in the 1950s and 1960s, particularly in Delhi and Mumbai restaurants. The dish is believed to have been created as a vegetarian alternative to butter chicken (Murgh Makhani).

First Place Made: Punjab region, North India (popularized in Delhi and Mumbai)

Time Period: Mid-20th century (1950s–1960s), with roots in traditional Punjabi cuisine

The dish was developed to cater to vegetarian diners who wanted something as rich and flavorful as butter chicken. It quickly became a staple in Indian restaurants worldwide and is now one of the most popular Indian vegetarian dishes globally. The creamy tomato-based gravy with aromatic spices and kasuri methi represents the fusion of traditional Indian cooking techniques with modern restaurant-style presentation.

Ingredients

  • 200g paneer, cut into cubes
  • 2 medium onions, cut into cubes
  • Oil for cooking
  • 1 tsp cumin seeds (jeeru)
  • 2-3 cloves (laving)
  • 1 bay leaf (tej patta)
  • 1 star anise (taj)
  • Lots of minced garlic (the more, the better!)
  • Tomato puree
  • Red chilli powder, to taste
  • Turmeric powder (haldi)
  • Kashmiri red chilli powder (kk) — for color and mild heat
  • Coriander-cumin powder (dhanajiru)
  • 1 tbsp yogurt
  • Water, as needed
  • Kasuri methi (dried fenugreek leaves)
  • Salt, to taste

Step-by-Step Instructions

  1. Prep ingredients: Cut paneer into cubes and onions into cubes. Set aside.
  2. Temper whole spices: Heat oil in a pan. Add cumin seeds, cloves, bay leaf, and star anise. Sauté until fragrant, about 30 seconds.
  3. Add garlic: Add lots of minced garlic and sauté for 30 seconds until fragrant. Don't skimp on the garlic — it's a key flavor component!
  4. Cook paneer and onions: Add onion and paneer cubes with salt. Sauté until onions are translucent and paneer is slightly golden on the edges.
  5. Add spices and tomato: Add tomato puree, red chilli powder, turmeric, kashmiri red chilli powder, and coriander-cumin powder. Sauté until the oil separates from the masala — this is a sign the spices are properly cooked.
  6. Add yogurt: Add 1 tbsp yogurt and mix well. This adds creaminess and helps balance the acidity of the tomatoes.
  7. Simmer: Add some water and cook until the gravy reaches your desired consistency. Let it simmer for a few minutes to allow flavors to meld.
  8. Finish with kasuri methi: Add kasuri methi and cook for another 2-3 minutes. Adjust salt and serve hot with naan or rice.

Tips for Perfect Paneer Butter Masala

  • Don't skimp on garlic: The recipe calls for "lots of minced garlic" — this is intentional and adds incredible depth of flavor
  • Cook until oil separates: This is a crucial step in Indian cooking — it means your spices are properly cooked and won't taste raw
  • Kasuri methi: Rub the dried fenugreek leaves between your palms before adding to release their aroma
  • Paneer texture: If using store-bought paneer, you can lightly fry it before adding to prevent it from breaking
  • Adjust consistency: Add water gradually to reach your preferred gravy consistency

Serving Suggestions

Paneer Butter Masala pairs beautifully with:

  • Fresh naan or roti
  • Steamed basmati rice
  • A side of raita
  • Pickled onions

This recipe showcases the beautiful balance of spices in Indian cooking. The generous use of garlic and the finishing touch of kasuri methi create a dish that is both comforting and sophisticated.