Restaurant style Paneer Butter Masala

PBM (10)

Paneer Butter Masala is a rich, creamy and tasty dish of North Indian cuisine available in all Indian restaurants. It is made with freshly cut paneer/ firm cottage cheese pieces in rich butter, tomato and cashewnut gravy. It is served as side dish for roti, paratha and pulao varieties. Come, let’s see how to make this most popular recipe at home with easy method and step by step pictures.


Cuisine: North Indian

Preparation time: 15 minutes

Cooking time: 25 minutes

Serves: 4


  1. Paneer- 200 g
  2. Onion- 1
  3. Tomato- 3
  4. Ginger garlic paste- 1 tbsp
  5. Cashew- 12
  6. Milk- 4 tbsp
  7. Salt- as required
  8. Sugar- 2 tsp (adjust according to taste)
  9. Turmeric- 1/4 tsp
  10. Red chilli powder- 1 tsp
  11. Coriander powder-1 tsp
  12. Garam masala- 1 tsp
  13. Water- 1/2 cup
  14. Fresh Cream- 3 tbsp
  15. Kasuri methi- 1/2 tsp
  16. Coriander leaves- 2 tbsp

To temper:

  1. Oil- 1 tsp
  2. Butter- 2 tbsp
  3. Cloves- 3
  4. Cinnamon- 1/2 inch piece
  5. Bay leaf- 1


1. Soak cashew in warm milk for 15-20 minutes and grind into smooth paste and set aside.

2. Grind onion into a fine paste with little water and set aside.

3. Grind tomato into fine paste without water and set aside.

4. To a pan, add oil, butter and items under ‘to temper’

5. When the spices turn aromatic, add ginger garlic paste and onion paste.

6. Cover partially with lid as it splutters a lot. Cook in medium flame.

7. Cook till the raw smell leaves. Add tomato paste, salt, sugar, turmeric. Close and cook till oil leaves the sides.

8. Add red chilli powder, coriander powder garam masala and cook for 2 minutes. (Add water to adjust consistency)

9. Add cashew paste and cook in low flame for 2 minutes. (NOTE: Most restaurants add red food colouring to make the gravy reddish orange as the gravy turns lighter after adding cashew paste. Adding food colour is optional, we are not adding food colour in this recipe.)

10. Cut the paneer into cubes and add to the boiling gravy. I add the paneer cubes directly since paneer is soft without frying. If you are used to frying it before adding, you can follow that as well.

11. When it boils and paneer is coated well with the gravy, add kasuri methi, fresh cream and coriander leaves and switch off. Serve hot with roti, paratha or pulao. Delicious restaurnt style paneer butter masala is ready to eat!


PBM (13)

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