Paneer makhani, or “Butter Paneer Masala,” is a rich, creamy tomato curry. It is a popular restaurant dish often eaten with naan or some other flatbread. It also goes well with rice.
Paneer makhani is definitely a go-to dish at everyday Indian restaurants. But there is nothing more disappointing than ordering paneer makhani from a restaurant and getting flavorless chunks of paneer in a watered-down sauce.

The gravy in this recipe does not disappoint. It is thickened with cashews, which makes it taste so rich and creamy and so satisfying. I love to pour it next to a heaping serving of basmati rice and let the extra gravy soak into it.
Tips:
- Be sure to cook the onions just until softened and to cook down the tomatoes enough. You don’t want too much caramelization on the onions for this recipe.
- Serve with any kind of flatbread, especially naan





Ingredients
- 4 tbsp butter (separated)
- 8 oz paneer (chopped; either homemade or store bought will work just fine)
- 1/2 medium onion (about ½ cup, thinly sliced pole to pole)
- 4 cloves garlic
- 2 tsp ginger (roughly chopped)
- 14 1/2 oz can whole peeled tomatoes (roughly crushed with your hands or a fork)
- 14 whole cashews (about 2 tbsp)
- 1 green chili (slit into half I usually use either jalapeno or serrano)
- 1 tsp cumin (ground)
- 1 tsp Kashmiri red chili powder or red paprika work too
- 1/2 tsp garam masala
- 3/4 tsp salt (or to taste)
- 1/2 tsp sugar
- 1 tsp dried fenugreek leaves kasoori methi
- cilantro for garnish optional
Instructions
- In a small bowl, soak the cashews in 1/4 cup of water. Set aside. ( For how long)
- Heat 1 tbsp butter in a 12 inch frying pan. Add the paneer cubes and fry until slightly golden. Remove
- Add 1 more Tbsp of butter and add the onions and cook until softened. Add the ginger and garlic. Cook for one more minute.
- Add the tomatoes and cook for 10 to 12 minutes. Until the mixture thickens and oil separates/ rises to the top.
- Transfer the mixture to a blender along with the cashews and blend to a smooth paste. Strain the paste if it doesn't blend into a very smooth mixture. Add 1 to 1.5 cups of water.
- Wipe the pan and add 1 tbsp of butter under medium heat.
- Add the slit green chili, ground cumin, kashmiri chili powder. Cook for about 20 seconds and
- Transfer puree back into the pan. Cook 5 minutes.
- Add the garam masala, sugar, dried fenugreek leaves and salt. Stir well.
- Add the paneer. Cook for 10 minutes.
- Turn off the heat and stir in 1 tbsp of butter.