Paneer Makhani
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Make restaurant-style Paneer Makhani, also known as “butter paneer”, with this delicious, easy one pot recipe! It features the most creamy, rich curry sauce, made with tomatoes, cashews and butter. And it’s filled with the Indian cheese, paneer, to create an incredibly flavorful vegetarian dish!
Table of contents
Indian food is one of my favorite types of cuisines and over the last few years I’ve become obsessed with perfecting my own restaurant-style Indian recipes at home. It all started in 2020 with this Palak Paneer recipe.
After watching a dozen YouTube videos, ordering my favorite Indian spices online and testing the recipe a dozen times, I finally perfected one of my favorite Indian restaurant dishes at home. Next, it was on to butter chicken, or chicken makhani, another one of my Indian restaurant favs.
After perfecting that recipe, I decided to also make a vegetarian version of the popular dish with paneer. If you’re not familiar with paneer, it’s an Indian cheese, similar to the taste of American cottage cheese, but with a texture similar to tofu. It’s a firm, non-melting cheese, which makes it perfect for adding to Indian sauces, also called gravy.
Paneer has become so popular in America over the last few years that you can now find it at grocery stores, like Costco and Sprouts. I’ve also made my own paneer at home using this recipe in an Instant Pot. It was so easy and turned out perfect on the first try!
Makhani refers to butter, so translated paneer makhani, means Indian cheese cooked in a butter sauce. This dish is one of the most popular at Indian restaurants, and now you can make it at home in just 35 minutes!
Why you’ll love this recipe
- It’s easy to make in one pot in 35 minutes!
- The authentic spices in this recipe means that it will taste just like you ordered it from your favorite Indian restaurant!
- The flavor is out of this world!
- It’s naturally vegetarian and gluten free!
Ingredients you’ll need
To make a truly authentic paneer makhani at home, you will need some specialty ingredients that you might not have in your pantry. Some of which, you will probably only find at an Indian market or online. I’ve noted the hard to find ingredients below, and linked to the brands that I purchased on Amazon.
I promise, you’ll continue to use the ingredients to make this dish over and over again, so it’s worth the initial investment to stock your pantry!
- Olive oil – a combination of olive oil and butter adds flavor and aroma, and a rich creaminess to the dish. You can replace the olive oil with additional butter if you prefer, but I highly recommend trying the olive oil and butter combination in this recipe for the best flavor.
- Butter – an essential ingredient in butter paneer, I recommend using unsalted butter, but if you only have salted butter, I recommend reducing the added salt in this recipe by half.
- Onion – I recommend a yellow onion for this recipe, but red onions or white onions can also be used.
- Ginger garlic paste – you might be able to find this paste at the grocery store, or you can order it online. You will probably find garlic paste and ginger paste sold separately at the grocery store, near the produce section. You can always buy one of each, then combine them to make your own ginger garlic paste at home, which is comprised of 2 parts garlic, to 1 part ginger.
- Garam masala – this blend of whole spices adds a delicious balance of warmth and spice to the sauce.
- Red chili powder – I recommend Kashmiri chili powder for the most authentic flavor. In a pinch, you can use red chili powder found on the spice aisle at American grocery stores, just know that it won’t have quite the same flavor.
- Ground turmeric – adding a small amount of turmeric is essential to all Indian curry recipes. It has a strong, bitter flavor when used in abundance, so be sure to only use the recommended amount in this recipe.
- Salt
- Cardamom powder – cardamom has a complex flavor and aroma that is most commonly found in Indian recipes. Used in small amounts, it adds a fruity, warm flavor that pairs well with savory dishes, like curries.
- Ground cumin – one of the most commonly used spices in Indian cooking, this spice is essential in an Indian curry to add a rich flavor and aroma.
- Lemon juice – adds acidity and zest to the sauce.
- Crushed tomatoes – these canned tomatoes are used as the base of this tomato, butter gravy. A can of tomato puree can also be used in place of the crushed tomatoes.
- Cashews – cashew paste is traditionally used in Indian curries to add a sweet, nutty, creaminess to the dish. In this recipe, cashew pieces are soaked in the sauce to soften them, then they’re blended into the sauce. You can use raw or roasted cashews in this recipe, but I do recommend unsalted cashews. If you have whole cashews, I recommend chopping them slightly so that they soften in the sauce in just 10 minutes.
- Dried Fenugreek leaves – this essential Indian herb has a distinct maple syrup flavor, with a slight bitterness. I have not been able to find it in traditional American grocery stores, so I order it on Amazon. You can also find it in Indian markets. It might be labeled kasuri methi. While you can find substitution ideas online, I haven’t found anything that’s quite like the real thing, so I do recommend ordering this herb online when making paneer makhani at home.
- Sugar – just a teaspoon of sugar adds a slight sweetness to the sauce and balances out the salt and spice.
- Vegetable broth – this is used to thin out the thick curry sauce. It adds more flavor than water, but if you don’t have broth available, you can simply use water instead.
- Paneer – while I used to only be able to find this Indian cottage cheese at Indian markets, it’s now available at Costco, Sprouts and other major grocery store chains and big box retailers. It freezes well, so I usually buy it in bulk at Costco, or an Indian market, so that I always have it on hand when I want to make palak paneer at home. In 2020, I also tried my hand at making homemade paneer in the Instant Pot. I used this recipe and it turned out perfect!
- Heavy cream – used to finish the dish, along with butter, this adds a wonderfully creaminess to the dish. You can omit it, but the sauce will not be as creamy. You can also replace it with canned coconut cream, if you prefer.
Instructions
I’ve included step by step photos to make this recipe super easy to follow at home. For the full detailed recipe instructions and ingredient quantities, scroll to the recipe card at the bottom of this post.
- Cook onions, garlic and ginger. Heat olive oil and butter together in a large pan, or skillet, on the stove over medium-high heat. Add diced onions and cook for 4-5 minutes. Add garlic ginger paste and cook for an additional minute.
- Toss in the spices. Add garam masala, chili powder, turmeric, salt, cardamon powder and ground cumin to the pan. Let the spices cook for 30 seconds.
- Add the crushed tomatoes. Add lemon juice, crushed tomatoes and cashews to the pan. Toss them together so that the cashews are covered in the crushed tomatoes. Reduce the heat to medium-low and allow the sauce to simmer for 10 minutes.
- Blend the sauce. Transfer the sauce to a blender and blend until smooth and creamy. If you have an immersion blender, you can blend the sauce right in the pan.
- Transfer the sauce back to the pan on the stove. Turn the heat back up on the stove to medium.
- Add fenugreek leaves. Pour vegetable broth into the sauce and add sugar, then crush the fenugreek leaves in your hands and add them to the sauce.
- Toss in cubes of paneer. After adding the fenugreek leaves, stir to combine the sauce and bring it to a simmer, then add cubes of paneer cheese. Toss to coat the paneer in the sauce and simmer for 5 minutes.
- Finish with butter. Stir in heavy cream and add a cube of butter to finish the dish. Once the butter has melted into the curry, serve it over basmati rice with roti or naan bread for dipping. Garnish with fresh chopped cilantro, if you’d like.
Try it!
Instant Pot Basmati Rice
This easy recipe will make perfect, fluffy basmati rice in an Instant Pot, while you prepare the Indian curry on the stove!
Storage and reheating
Leftover butter paneer can be stored in the refrigerator for up to one week.
To reheat the leftovers, place them in a microwave-safe bowl and reheat, covered, for 2 minutes. To reheat on the stove, place the paneer makhani in a small pot on the stove over medium-high heat, and heat for 4-6 minutes, stirring occasionally.
How to make it vegan
To make vegan paneer makhani, you’d actually be making tofu makhani. Simply replace the Indian cheese, paneer, with cubes of firm tofu. You will also want to use a vegan butter-substitute for the traditional butter, and replace the heavy cream with unsweetened canned coconut cream.
Tips and tricks
- To spice up the sauce, add more kashmiri chili powder. With the 1 tablespoon recommended in this recipe, the curry sauce is mild, at around a 2-3 at most Indian restaurants. I like to add 2 tablespoons of the chili powder to make it a more medium spice level, at around a 5-6.
- You do not need to soak or pan fry the paneer before adding it to the sauce. Store-bought paneer is ready to eat right out of the package. And if you make the paneer at home, it’s ready to eat after you make it. There’s no need to soak it or cook it before adding it to the sauce. The paneer will heat up in the sauce, and slightly soften, without falling apart. I do not recommend simmering the paneer in the sauce for more than 10-15 minutes, or it can change the texture of the cheese.
- Extra sauce can be made in advance and stored in the freezer. I always like to make a double batch of the sauce, then freeze half of it for later. Always freeze the sauce in a freezer-safe storage container and use within 6 months of freezing. To defrost, place the sauce in the refrigerator overnight, or up to 24 hours in advance. Reheat the sauce on the stove in a large pan. Add the paneer once the sauce has completely heated through. Allow the paneer to simmer in the sauce for 5 minutes before serving.
- To make this recipe nut-free, omit the cashews. Add an additional 1/4 cup heavy cream to replace the creaminess from the soaked cashews.
More Indian recipes
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Paneer Makhani
Ingredients
- 2 tablespoons olive oil
- 4 tablespoons butter, divided
- 1 cup onion, diced
- 2 tablespoons garlic ginger paste, or 4 teaspoons crushed garlic cloves + 2 teaspoons fresh grated ginger
- 1 tablespoon garam masala
- 1 tablespoon red chili powder, recommended: kashmiri chili powder
- 1 teaspoon ground turmeric
- 1 ½ teaspoons salt
- 1 teaspoon cardamon powder
- ½ teaspoon ground cumin
- 2 teaspoons lemon juice
- 15 ounce can crushed tomatoes
- ¼ cup unsalted cashews, chopped
- ½ cup vegetable broth, or water
- 1 teaspoon sugar
- 1 tablespoon dried fenugreek leaves
- 14 ounces paneer, cubed
- ½ cup heavy cream
Instructions
- Add the olive oil and 2 tablespoons butter to a large pan on the stove over medium-high heat.
- Once the butter has melted, add the diced onions and cook for 4-5 minutes.
- Add the garlic ginger paste and cook for an additional minute.
- Add the garam masala, chili powder, turmeric, salt, cardamon powder and ground cumin to the pan. Let the spices cook for 30 seconds.
- Add the lemon juice, crushed tomatoes and cashews to the pan. Toss them together so that the cashews are covered in the crushed tomatoes.
- Reduce the heat to medium-low and allow the sauce to simmer for 10 minutes.
- Remove the pan from the heat and transfer the tomato sauce to a blender. Blend until smooth, then transfer the mixture back to the pan on the stove.
- Turn the heat on the stove to medium, pour in the vegetable broth and add the sugar.
- Crush the fenugreek leaves in the palm of your hands, then add them to the pan. Stir to combine.
- Bring the sauce to a simmer, add the cubed paneer and keep simmering for 5 minutes.
- Stir in the heavy cream and the remaining 2 tablespoons butter to finish the dish.
- Spoon the butter paneer over basmati rice for serving. Top with chopped fresh cilantro.
Notes
- Leftover butter paneer can be stored in the refrigerator for up to one week.
- To reheat the leftovers, place them in a microwave-safe bowl and reheat, covered, for 2 minutes. To reheat on the stove, place the paneer makhani in a small pot on the stove over medium-high heat, and heat for 4-6 minutes, stirring occasionally.
- This recipe is naturally gluten free and vegetarian.
- To make this recipe vegan, replace the paneer with cubes of firm tofu. You will also want to use a vegan butter-substitute for the traditional butter, and replace the heavy cream with unsweetened canned coconut cream.
- To make this recipe nut-free, omit the cashews. Add an additional 1/4 cup heavy cream to replace the creaminess from the soaked cashews.
- To spice up the sauce, add more kashmiri chili powder. With the 1 tablespoon recommended in this recipe, the curry sauce is mild, at around a 2-3 at most Indian restaurants. I like to add 2 tablespoons of the chili powder to make it a more medium spice level, at around a 5-6.
- Extra sauce can be made in advance and stored in the freezer. I always like to make a double batch of the sauce, then freeze half of it for later. Always freeze the sauce in a freezer-safe storage container and use within 6 months of freezing. To defrost, place the sauce in the refrigerator overnight, or up to 24 hours in advance. Reheat the sauce on the stove in a large pan. Add the paneer once the sauce has completely heated through. Allow the paneer to simmer in the sauce for 5 minutes before serving.
Nutrition Facts
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One Comment on “Paneer Makhani”
love your recipe. It’s really nice to see you making our traditional dishes.