Homemade Paneer Butter Masala: Easy Step-by-Step Recipe

Paneer Butter Masala is one of the most loved North Indian dishes, known for its rich, creamy, and mildly spiced tomato gravy. The good part is you don’t need restaurant-style equipment or complicated steps to make it at home. With simple ingredients and a few easy techniques, you can recreate this comforting dish in your own kitchen.
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Ingredients You Will Need

For the gravy:

  • 2 tbsp butter
  • 1 tbsp oil
  • 2 medium onions (roughly chopped)
  • 4 medium tomatoes (ripe and chopped)
  • 10-12 cashews
  • 2-3 garlic cloves
  • 1 inch ginger piece
  • 1-2 green chilies (optional)

Spices:

  • 1 tsp red chili powder
  • 1 tsp coriander powder
  • ½ tsp turmeric powder
  • 1 tsp garam masala
  • 1 tsp sugar
  • Salt to taste

Main:

  • 200-250 g paneer (cubed)
  • 2 tbsp fresh cream
  • 1 tbsp kasuri methi (dried fenugreek leaves)

Step-by-Step Easy Recipe

1. Prepare the gravy base

Heat butter and oil in a pan. Add chopped onions, ginger, garlic, green chilies, and cashews. Saute until onions turn soft and light golden.

2. Add tomatoes

Add chopped tomatoes and cook until they become soft and mushy. This step builds the rich flavor base.


3. Blend into smooth paste

Let the mixture cool slightly, then blend it into a smooth, creamy paste using a mixer.

4. Cook the masala

In the same pan, add a little butter. Pour the blended paste and cook for 5–7 minutes on medium heat. Add turmeric, chili powder, coriander powder, salt, and sugar. Mix well and let it cook until oil starts to separate.


5. Add paneer

Add paneer cubes and gently mix so they absorb the gravy. Cook for 2–3 minutes.

6. Finish with cream and kasuri methi

Add fresh cream and crushed kasuri methi. Mix gently and simmer for 2 minutes.

Serving Suggestions

Paneer Butter Masala tastes best when served hot with:
  • Naan
  • Butter roti
  • Jeera rice
  • Paratha

Tips for Perfect Taste

  • Use fresh paneer for soft texture
  • Don’t overcook paneer, or it may become chewy
  • Adjust cream and butter for richness
  • Add a pinch of sugar to balance tomato acidity
  • Kasuri methi adds restaurant-style aroma, don’t skip it

This easy homemade Paneer Butter Masala brings restaurant-style flavor right to your dining table. With simple steps and everyday ingredients, you can enjoy a creamy, comforting dish anytime you want.