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Creamy Paneer Butter Masala (Easy Vegetarian Butter Chicken Recipe)

This Creamy Paneer Butter Masala is a rich, restaurant-style Indian curry made with soft paneer in a velvety tomato butter sauce. Easy, flavorful, and perfect with naan or rice.
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Prep Time 15 minutes
Cook Time 25 minutes
Total Time 40 minutes
Servings: 4
Course: Main Course
Cuisine: Indian
Calories: 495
Ingredients Method Notes

Ingredients
  

  • 2 tablespoons butter
  • 1 tablespoon oil
  • 1 medium onion roughly chopped
  • 4 cloves garlic
  • 1- inch piece ginger
  • 3 medium tomatoes roughly chopped
  • ¼ cup raw cashews
  • 1 teaspoon Kashmiri red chili powder
  • ½ teaspoon turmeric powder
  • 1 teaspoon coriander powder
  • 1 teaspoon cumin powder
  • 1 teaspoon garam masala
  • 1 teaspoon sugar or honey optional
  • Salt to taste
  • ½ cup heavy cream
  • 400 g 14 oz paneer, cut into cubes
  • 1 teaspoon kasuri methi dried fenugreek leaves
  • Fresh cilantro chopped (for garnish)

Method
 

  1. Soak the cashews in hot water for 15-20 minutes.
  2. Heat the butter and oil in a large pan over medium heat. Add the onion and cook until soft. Stir in the garlic and ginger, cooking for another minute until fragrant.
  3. Add the tomatoes, Kashmiri red chili powder, turmeric, coriander powder, cumin powder, and a pinch of salt. Cook until the tomatoes are soft and the butter begins to separate from the mixture.
  4. Transfer the cooked mixture along with the soaked cashews to a blender. Blend until completely smooth.
  5. Return the smooth gravy to the pan and stir in the heavy cream, garam masala, and sugar or honey (if using). Simmer gently for 3-5 minutes.
  6. Add the paneer cubes and gently stir until coated in the creamy sauce. Simmer for another 3–5 minutes without overcooking the paneer.
  7. Crush the kasuri methi between your palms and stir it into the curry.
  8. Garnish with a swirl of heavy cream, fresh cilantro, and a small knob of butter if desired. Serve hot with naan, roti, or basmati rice.

Notes

  • Soak store-bought paneer in warm water for 10-15 minutes before cooking to make it extra soft.
  • Blend the gravy until completely smooth for a true restaurant-style texture.
  • Kashmiri red chili powder adds vibrant color without excessive heat.
  • Don't skip kasuri methi, it's the secret to authentic restaurant flavor.
  • The curry tastes even better the next day after the flavors have had time to develop.