Paneer Makhani: Creamy Indian Butter Paneer Recipe

Recreate restaurant-style Paneer Makhani, also called “butter paneer,” with this simple one-pot recipe. The sauce is luxuriously creamy—made from tomatoes, cashews, butter and cream—and it envelopes cubes of paneer for a deeply flavorful vegetarian curry that’s ready in about 35 minutes.

Indian cuisine ranks among the most vibrant and satisfying comfort foods, and Paneer Makhani is one of its most beloved dishes. This version aims to capture the rich, restaurant-style flavors at home without complicated techniques. The recipe relies on good-quality spices, a creamy cashew-tomato base, and paneer—a firm Indian cheese with a mild, slightly milky taste and a hearty texture that holds up well in simmered sauces. If you can’t find paneer at your local store, it can be made at home, and the sauce also freezes well for quick meals later.

Ingredients you’ll need

To achieve an authentic Paneer Makhani, a few specialty ingredients are recommended—many are now available in mainstream grocery stores or online. These items are worth keeping in your pantry if you plan to cook Indian food regularly.

• Olive oil – used with butter for a balanced flavor and aroma. You can increase butter in place of olive oil if you prefer.
• Butter – unsalted is preferred; reduce added salt if using salted butter.
• Onion – yellow onion is recommended, though red or white will work.
• Ginger-garlic paste – convenient and common in Indian cooking. If unavailable, combine 2 parts crushed garlic to 1 part grated ginger.
• Garam masala – a warm, aromatic spice blend that defines much of the curry’s flavor.
• Red chili powder – Kashmiri chili powder is preferred for authentic color and milder heat; adjust to taste.
• Ground turmeric – a small amount adds earthiness and color; use sparingly.
• Salt
• Cardamom powder – a little adds floral warmth and complexity.
• Ground cumin – essential for a savory curry base.
• Lemon juice – brightens the sauce with acidity.
• Crushed tomatoes – the tomato base for the makhani gravy; tomato puree works as an alternative.
• Cashews – blended into the sauce for natural creaminess; use unsalted, chopped if whole.
• Dried fenugreek leaves (kasuri methi) – offers a distinctive, slightly sweet-bitter note that is characteristic of many makhani sauces.
• Sugar – a teaspoon balances acidity and spice.
• Vegetable broth or water – to thin the sauce as needed.
• Paneer – cubed; readily available in many supermarkets and freezes well.
• Heavy cream – added at the end for a silky finish; canned coconut cream can be substituted for a dairy-free option.

Instructions

These steps describe the full method—use the ingredient list below for quantities.

1. Sauté the aromatics. In a large skillet over medium-high heat, warm the olive oil and 2 tablespoons of butter. Add the diced onion and cook for 4–5 minutes, until translucent. Stir in the ginger-garlic paste and cook an additional minute.
2. Add the spices. Stir in garam masala, chili powder, turmeric, salt, cardamom powder and ground cumin. Cook for 30 seconds to release their aromas.
3. Combine tomatoes and cashews. Add lemon juice, crushed tomatoes and chopped cashews. Toss so the cashews are coated, then reduce heat to medium-low and simmer for about 10 minutes.
4. Blend the sauce. Remove the pan from heat and carefully transfer the mixture to a blender. Purée until very smooth and creamy. An immersion blender can be used directly in the pan.

5. Finish the sauce. Return the blended sauce to the pan and set over medium heat. Pour in the vegetable broth (or water) to reach your desired consistency and add the sugar. Crush the dried fenugreek leaves in your hands and stir them into the sauce.
6. Add the paneer. Bring the sauce to a gentle simmer, then add the cubed paneer. Simmer for 4–5 minutes to warm the paneer and allow it to absorb flavor. Avoid prolonged simmering to prevent the paneer from changing texture.
7. Enrich and serve. Stir in the heavy cream and the remaining butter until incorporated. Serve the Paneer Makhani over basmati rice with naan or roti for dipping. Garnish with chopped cilantro if desired.

Storage and reheating

Store leftover Paneer Makhani in an airtight container in the refrigerator for up to one week. To reheat, microwave covered for about 2 minutes or warm on the stove in a small pot over medium heat for 4–6 minutes, stirring occasionally. If reheating sauce from the freezer, thaw overnight in the refrigerator and warm gently on the stove before adding paneer.

If you tried this Paneer Makhani and enjoyed it, please leave a rating and share how you adjusted the recipe to make it your own.