Paneer butter masala
A rich, restaurant-style paneer butter masala with 2 generous servings: tender paneer cubes in a smooth tomato-cashew gravy finished with cream, butter, and dried fenugreek. The sauce is built by softening onion, simmering tomatoes with spices, then blending until silky before a brief final simmer. Serve hot with naan, roti, or rice.

Estimated calories and US ingredient costs.
For a larger batch, scale the sauce ingredients by weight and keep the pan wide enough for even reduction. Do not double the heat or shorten the simmering steps; the tomato-cashew base still needs time to soften and blend smoothly. If making more than 4 servings, use a 4-quart saucepan or wider skillet so the sauce reduces evenly without splattering. Nutrition is approximate and includes the butter/oil expected to remain in the finished sauce; if you leave more fat behind in the pan, the finished kcal will be lower.
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Ingredients
For 2 people
- 9 oz paneer, cut into 1-inch cubes
- 2 tbsp unsalted butter, divided
- 1 tbsp neutral oil
- 4 oz yellow onion, finely chopped
- 10 1/2 oz canned crushed tomatoes
- 0.7 oz raw cashews
- 2 tsp minced fresh ginger
- 2 tsp minced garlic
- 1 tsp Kashmiri chili powder
- 1 tsp ground coriander
- 1/2 tsp ground cumin
- 1/4 tsp turmeric
- 1/2 tsp kosher salt
- 3/4 cup water, plus more as needed
- 1/4 cup heavy cream
- 1 tsp sugar
- 1/2 tsp garam masala
- 1 tsp dried fenugreek leaves
- 1 tbsp chopped cilantro
Method
- Soak the paneerPlace the 9 oz paneer cubes in a bowl and cover them with warm water for 10 minutes while you start the sauce. This softens the surface so the cubes stay tender when they are folded into the finished gravy. Drain well before using.
- Build the onion baseSet a medium saucepan or deep skillet over medium heat. Add 1 tbsp of the butter and the neutral oil, then stir in the chopped onion. Cook for 6 to 8 minutes, stirring often, until the onion turns soft and light golden at the edges without browning hard. Add the ginger and garlic and cook for 30 seconds more, just until fragrant.
- Cook the tomato-cashew masalaStir in the crushed tomatoes, cashews, Kashmiri chili powder, coriander, cumin, turmeric, kosher salt, and 3/4 cup water. Bring to a gentle bubble, lower the heat to medium-low, and simmer for 10 minutes. The cashews should soften completely and the tomatoes should look darker and less watery.
- Blend until smoothCarefully transfer the hot mixture to a blender and blend until very smooth, or use an immersion blender directly in the pan if your pot is deep enough. If the sauce seems grainy, blend a little longer. For the silkiest texture, blend while the mixture is still hot and then return it to the pan.
- Simmer the gravyReturn the blended sauce to the pan over medium-low heat and simmer for 5 minutes, stirring frequently so the base does not stick. Add the sugar and garam masala. If the sauce looks too thick, stir in 2 to 4 tablespoons of water; it should coat a spoon in a creamy layer, not hold a paste-like shape.
- Finish with butter, cream, and fenugreekLower the heat to low. Stir in the remaining 1 tbsp butter, the heavy cream, and the dried fenugreek leaves, crushing the fenugreek between your palms before adding it. Taste for balance, then keep it on low for 1 to 2 minutes so the cream warms through without boiling hard.
- Warm the paneer gentlyAdd the drained paneer cubes and fold them through the sauce carefully so they stay intact. Simmer on low for 2 to 3 minutes, just until the paneer is heated through and fully coated. If the gravy thickens too much at this stage, loosen it with a splash of water rather than more cream.
- Plate and finishSpoon the paneer butter masala into shallow bowls and finish with the chopped cilantro. Serve immediately while the sauce is glossy and the paneer is soft.
Before you cook
What to get ready
Heavy saucepan or wide skillet, spoon, small bowls for spices and a rice pot if the recipe includes rice.
Have cashews and tomato ready to soften before blending; vent hot mixtures safely.
If something needs adjusting
Gravy is sandy
Cook the cashews fully soft and blend thoroughly before returning the sauce to the pan.
Spices catch on the bottom
Have liquid ready before blooming spices. Lower the heat and add the next liquid promptly rather than letting ground spices blacken.
Store for later
Cool curry in shallow containers and refrigerate rice separately if included. Reheat to 165°F with a little water and stir to heat the center evenly.
Refrigerate perishables within 2 hours, or 1 hour above 90°F. Keep the fridge at 40°F or below; use refrigerated leftovers within 3–4 days. USDA storage and reheating guidance.
Make the ingredients go further
Use extra paneer in a spinach gravy rather than leaving an open pack unused.
Next use for your ingredients: Palak paneer →
Calculate this meal with your own prices →
How to Cool and Store Leftovers →
Cooking notes updated October 24, 2026. How we create recipes.
Tips, swaps and questions
A little kitchen know-how
For a more restaurant-like finish, use canned crushed tomatoes rather than fresh tomatoes and blend the sauce until completely smooth. If you prefer a lighter dish, reduce the cream to 2 tablespoons and add a little extra water at the final simmer; the flavor stays rich, but the sauce will look less velvety.
Make it work for you
If you do not have cashews, use the same weight of blanched almonds, but expect a slightly less creamy and more nutty sauce. If you skip the cream, finish with 1 extra tablespoon of butter and a little water to keep the gravy glossy instead of dense.
Use more of your paneer and heavy cream in palak paneer.
Why do the cashews need to simmer with the tomatoes?
They soften in the sauce and blend into the gravy, giving paneer butter masala its thick, smooth body without flour. If they are not simmered long enough, the sauce can turn gritty after blending, so keep the tomato mixture at a gentle simmer until the cashews are fully tender.
Times are estimates. Check ingredients for allergens. For safe temperatures and storage, see FoodSafety.gov.