Paneer Butter Masala Recipe: Creamy Restaurant-Style Curry with Phoran Masala

Paneer Butter Masala Recipe: Creamy Restaurant-Style Curry with Phoran Masala

Deepa Shah

By Deepa Shah | Stone-ground spice expert & founder of Phoran Masala

The Vegetarian Crown Jewel: Paneer Butter Masala

Paneer butter masala — also called paneer makhani — is the vegetarian counterpart to butter chicken, and arguably just as beloved. Soft cubes of paneer in a silky, rich tomato-cream gravy, fragrant with Phoran's 17-spice Garam Masala and colored a deep, beautiful red by Kashmiri Red Chilli Powder. This is the dish that converts people to vegetarian Indian food.

The Spice Story

The gravy is where everything happens. Cashews blended into the tomato base give it body and richness without relying entirely on cream. Green cardamom adds aromatic sweetness. Cloves add depth. And Phoran Garam Masala — added in two stages — gives the dish its characteristic warmth and complexity. The difference between a flat, one-dimensional paneer butter masala and a restaurant-quality one almost always comes down to the quality of the garam masala.

Ingredients (serves 4)

Step-by-Step Method

Step 1: Build the Gravy Base

Heat 1 tbsp butter in a pan. Add cardamom and cloves, sauté 30 seconds. Add onions and cook until soft and translucent. Add ginger-garlic paste, cook 2 minutes. Add tomatoes and cashews. Cook on medium heat for 12–15 minutes until tomatoes are completely broken down. Cool slightly, then blend to a very smooth puree. Strain through a fine sieve for a silky texture.

Step 2: Cook the Gravy

Heat remaining butter in the same pan. Add Kashmiri chilli powder and turmeric — cook in the butter for 30 seconds to bloom the color. Add the strained tomato puree. Cook on medium heat for 8–10 minutes, stirring frequently, until the gravy thickens and the butter begins to separate at the edges.

Step 3: Add Spices and Paneer

Add 1 tsp garam masala and sugar. Stir well. Add paneer cubes — either raw or lightly pan-fried in butter until golden (pan-frying adds texture and prevents the paneer from breaking). Simmer 5 minutes.

Step 4: Finish with Cream

Reduce heat to low. Stir in heavy cream. Simmer gently for 3–4 minutes — do not boil after adding cream. Finish with the remaining 1/2 tsp garam masala for a fresh aromatic lift. Garnish with fresh coriander and a swirl of cream.

Pro Tips for Restaurant-Quality Results

  • Strain the gravy: This single step transforms a home-style curry into a restaurant-quality one
  • Pan-fry the paneer: Golden paneer holds its shape better and adds a slight crust that contrasts beautifully with the silky gravy
  • Two-stage garam masala: Once during cooking for depth, once at the end for freshness
  • Don't skip the sugar: A small amount balances the acidity of the tomatoes without making the dish sweet
  • Low heat after cream: Boiling cream causes it to split and curdle

Variations

Mushroom Butter Masala: Replace paneer with button mushrooms for an equally delicious variation.

Tofu Butter Masala: Use firm tofu for a vegan version — pan-fry until golden before adding to the gravy.

Paneer Butter Masala Pizza: Use the gravy as a pizza base with paneer cubes and mozzarella for a fusion twist.

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