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Paneer Butter Masala Recipe

by Harjeet Kaur
January 8, 2025
in Food, Recipes
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Butter Paneer or Paneer

Paneer Butter Masala recipe

Sunday afternoon’s call for lazy lunch. Last week I tried a Paneer Butter Masala Recipe. For Punjabi vegetarians, it’s the ultimate dish with its delicious creamy smooth gravy with a hint of spiciness. Paneer, a type of cottage cheese, is readily available all over North India. However, I found it surprising to find it at a store in Guadalajara, Mexico. Much to my delight, the paneer was available and absolutely the same.

Known as Queso Panela; queso in Spanish means cheese and there is an entire array of Mexican cheeses. Made with whole milk, it has low fat and we can trace its origins back to Burgos, Spain. They usually ate Panela fresh as a snack or in salads. I have seen Panela crumble over tacos.

When I visit Delhi, I am offered many paneer dishes as vegetarian, but strangely, I am no paneer lover. I have seen paneer lovers in the north crumbling fresh paneer over any dish or eating it raw.

We also know paneer butter masala as Paneer Makhani in Punjabi cuisine. They generously use butter and tomato-based gravy and cream, giving the gravy a smooth, tangy and creamy texture. If paneer is unavailable in the market, you can just make it at home. You require only two ingredients; milk and lemon or vinegar or curds. I have a blog on how to make paneer here. Check it out.

Paneer Butter Masala Recipe

Paneer Chunks

INGREDIENTS

250 grams of Paneer cubes or Cottage Cheese

4 tbsps butter

1 tsp Ginger Paste

Pinch food colour (optional)

1 tsp Garlic Paste

1 Bay leaf

1-inch Cinnamon Stick

3 Cloves

2 Cardamoms

1 Onion, chopped

6 Tomatoes blanched and chopped

1/2 tsp Chili powder

1 tbsp Kasuri Methi

1/2 tsp Garam masala Powder

1/2 tsp Turmeric Powder

2 tablespoons Fresh Cream

Salt to taste

1 tbsp oil

1 cup thick curds

Pinch food colour (optional)

1 green chilli or 2

Fresh Cilantro chopped

Butter Paneer

Method

First, take a bowl and add the curds. Now mix in the ginger and garlic paste, salt, chilli powder, garam masala, and turmeric.

Actually, you can add the food colour to give it typical restaurant-style gravy. I didn’t have any food colour here, and I used Kashmiri saffron.

Next, add the paneer cubes, and salt and marinate for an hour. In a pan or kadhai, heat a tablespoon of butter and a tablespoon of oil.

After that, add all the whole spices and ginger-garlic paste. Sprinkle the kasuri methi, and sauté, for a minute or two and add the chillies.

I didn’t have green chillies, and I used one whole Serrano chilli. Serrano peppers are medium-sized Mexican chilli peppers and fiery and sharp. Serranos look like jalapenos, but they are small, pointed, and lots spicier.

Now, add the onions and stir till nice and pink and translucent but not brown.

Add the blanched and chopped tomatoes. Mix well. Cover and cook on simmer till the oil leaves the edges.

Add the marinated paneer and cook until you get a nice, thick gravy.

Switch off the flame. Serve the Paneer Butter Masala Recipe after garnishing with fresh cream and a blob of butter. I like to add some fresh cilantro.


Serve hot with nan, roti, paratha, rice, bread or tortilla.

Butter Paneer

You can similarly make Butter Chicken-Recipe for Butter Chicken

Few more recipes made with paneer-

How to Make Paneer at Home

Baked Paneer Biryani or Baked Cottage Cheese Rice

Crispy Paneer Fries

Cottage Cheese or Paneer Quesadillas

 Shahi Kunafa

 Shahi Paneer Pudding

This blog post is part of the blog challenge ‘Blogaberry Dazzle’ hosted by Cindy D’Silva and Noor Anand Chawla in collaboration with Mads’ Cookhouse.

Tags: butter paneergravyPaneerpanner makhani
Harjeet Kaur

Harjeet Kaur

I’m Harjeet Kaur, the voice behind Wordsmithkaur, a lifestyle blog that’s ranked among India’s Top 20. My writing journey started unexpectedly with articles for The Hindu, and I even had a weekend column that had loyal readership. Over the years, I’ve juggled many hats—content creator, freelance writer, and blogger—all while nurturing my love for words. On my blog, you’ll find a little bit of everything: recipes straight from my kitchen, travel diaries, gardening tips, and stories about beauty, mental health, and sustainability. Cooking is my therapy, and I take pride in turning simple, traditional recipes into gourmet dishes—with love as my secret ingredient. I write to connect, to share, and to inspire. Whether it’s content for social media, blogs, or brochures, I thrive on crafting stories that resonate. If it’s writing you need, I’m your go-to wordsmith. Take a peek into my world—I promise there’s always something interesting waiting for you.

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Comments 34

  1. Preeti Chauhan says:
    2 years ago

    I prefer the word Paneer Butter masala or Paneer makhani because Butter Paneer sometime sounds like matar paneer when you say it.That said , I really like your version of this recipe , it seems easier and also less greasy.

    Reply
  2. Zenobia Merchant says:
    2 years ago

    Yummy! I and my family love the Makhani, be it paneer of chicken. and my recipe is very similar to the way you’ve made it except that I don’t marinate the paneer or chicken. will try doing it your way next time.

    Reply
  3. Kaveri Chhetri says:
    2 years ago

    Paneer makhani is one of my fav paneer dishes but I make it without the colour and sugar(some people add it to balance out the tanginess of the tomatoes). My way of making it is entirely different. Learnt a new way from you… will try it this way the next time. I’m sure your learners loved it Harjeet😊

    Reply
  4. Ruchi Verma says:
    2 years ago

    My kids love butter paneer and I used to cook it in a little different manner but your recipe seems much easy and I will try this for sure. Thanks for sharing this recipe !!

    Reply
  5. Flavia Cutinho says:
    2 years ago

    Dear I seriously cannot forget that picture, my mouth starts water. Thanks for the share Im sure it tastes equally well like the picture.

    Reply
  6. Janaki says:
    2 years ago

    With Paneer we are always talking about Paneer butter masala…this one is new. Will try for sure. Thanks for sharing!

    Reply
  7. Ambica Gulati says:
    2 years ago

    I am a paneer lover. I will try and make this with less butter, as I am geting off fats. But it’s really nice to know that Indians can find paneer in Mexico.

    Reply
  8. Jeannine says:
    2 years ago

    As much as the color and looks of it make me cringe already as I can almost taste the spice of this paneer, I also can’t help but salivate as I know how much it would be savored and loved by my pallet when I taste it. Appreciate you sharing this!!! Must do!

    Reply
  9. Shail Thosani says:
    2 years ago

    The dish looks amazing! And you have innovated on the color also by using Kashmiri saffron and it looks so vibrant. The recipe is very easy enough to follow and we love paneer. So will definitely try out your recipe.

    Reply
  10. Madhu Bindra says:
    2 years ago

    That looks delicious. These days Indian ingredients are available everywhere. I will surely try out your version of the recipe. Thanks for sharing it.

    Reply
  11. Samata says:
    2 years ago

    I am a paneer lover although I am a non vegetarian … Panner Kofta, Paneer Bhujiya, Paneer butter masala, paneer dopayaza, Sarso paneer are some of the recipes I make in my kitchen. And my niece is a fan of my paneer butter masala. But honestly speaking I love to taste paneer butter masala made by others as somehow I found it more tastier than mine always. I wish to land at your place … please do serve me your paneer makhani … it looks so tempting 🙂

    Reply
    • Harjeet Kaur says:
      2 years ago

      Hahaha…come over Samata..you are welcome anytime

      Reply
  12. Ritu Bindra says:
    2 years ago

    Looks so tempting. Loved how you tweaked it with serrano peppers and saffron. I hear you about the love for paneer up north. I recall visiting relatives in Punjab and masala paneer being served as cheese for breakfast.

    Reply
  13. Neeta Kadam says:
    2 years ago

    This is from your master chef class at Mexico na mam? It look delicious. My daughter love paneer butter masala so much that she can eat thrice a day 😊 at breakfast, lunch and dinner. Your recipe is simple. I used to boil everything and then grind. I will try your recipe.

    Reply
  14. Anjali Tripathi says:
    2 years ago

    My family’s all-time favorite meal is our take on the paneer butter masala. And you’ve also innovated on the color by using Kashmiri saffron, which looks so vibrant. I will try to recreate your version, which has a distinguishing feature.

    Reply
  15. Anasua Basu says:
    2 years ago

    Butter chicken is something I have mastered so well over the year. But, trust me, I wanted this recipe to try out from a long time. But, could not find a suitable one that would help me make this dish tasty and perfect from all perspective. the part where you mentioned that you were unsure of finding paneer in Mexico, also revived my thoughts when my uncle also faces such issue when he was living abroad had n-how he had to fight the situation of not having his favorite dish.

    Reply
  16. Docdivatraveller says:
    2 years ago

    I love paneer makhani. Although sometimes I get confused between paneer butter masala and paneer lababdar and paneer makhani. Thanks for the recipe.

    Reply
  17. Sadvika Kylash says:
    2 years ago

    Its the holiday season and kids demand tasty and variety dishes. I am so looking forward for more such from you. and paneer seems very easy and look delicious

    Reply
  18. Vasumathi DS Ponday says:
    2 years ago

    Nice bit of history to the cheese in Mexico. I too like panner but don’t make butter panner as it becomes too heavy for me. so I avoid using cream….and ofcourse the dish tastes very diff. But even on days that I have made it, I have never used curd…. interesting variation to the dish.

    Reply
  19. Meetali Kutty says:
    2 years ago

    Thank you for sharing this wonderful recipe for Butter Paneer Masala or Paneer Makhani. It’s fascinating to know that in Guadalajara, Mexico, Paneer is available as Queso Panela. It’s amazing how different cultures have their own version of cheese and how it can be incorporated into different cuisines.

    I also appreciate the detailed instructions for making the paneer at home. It’s always great to have an option for homemade ingredients, especially when they are not readily available in the market.

    I can’t wait to try out this recipe with the delicious creamy smooth gravy and a hint of spiciness. I’m sure it will be a perfect lazy Sunday lunch for my family.

    Thank you once again for sharing this recipe and the interesting trivia about paneer and Queso Panela.

    Reply
  20. Nikita Jhanglani says:
    2 years ago

    Not a paneer lover, but the color of your dish The Mexican love for paneer is going to make for an interesting dinner-time conversation 😀

    Reply
  21. Varsh says:
    2 years ago

    Although I love anything with paneer I’m not a huge fan of Paneer butter masala since it has a bit of sweetness. I like my food spicy. My kids sure will love this version. Will make it for them someday.

    Reply
  22. Amritha Srinath says:
    2 years ago

    What a delectable recipe Harjeet! I love paneer and unfortunately in Luxembourg I hardly get paneer. Your recipe made me drool literally! And I am a vegetarian too, so finding ingredients to balance the same Indian flavors is a task. I can see in your recipe how easily you seem to have to utilized the local ingredients to make our delectable butter paneer.

    Reply
    • Harjeet Kaur says:
      2 years ago

      You can make it dear

      Reply
  23. Pamela Mukherjee says:
    2 years ago

    I love this recipe called Butter Paneer aka aneer Butter Masala. Being a non vegiterian I dont prefer to eat Veg much, Butter Paneer looks so delicious and I am going to try it for sure.

    Reply
  24. Shilpa Garg says:
    2 years ago

    I love Butter Paneer Masala and I feel like grabbing a naan and a big serving of the dish in my plate off my laptop screen. Thanks for sharing such a detailed and clear instructions. Will try your version of this dish soon!

    Reply
  25. Sivaranjini Anandan says:
    2 years ago

    Butter paneer has become like universal gravy. Loved reading the recipe with a great mix of authentic Indian flavourful Masalas.

    Reply
  26. Cindy D'Silva says:
    2 years ago

    Yum! Gosh your recipes look so easy and your pictures look really delicious. I hope you can cook something for me someday!

    Reply
  27. Neha Sharma says:
    2 years ago

    My husband and son love paneer and butter paneer masala is their absolute favorite but no matter how many recipes I follow it never comes out perfect and we end up ordering it from outside.

    Reply
  28. Rakhi Jayashankar says:
    2 years ago

    Paneer Makhani is my kids’ favorite. It is my easy way to make them say yes to chappathi when we don’t have non veg at home.

    Reply
  29. Swati Mathur says:
    2 years ago

    Butter paneer is my go to dish when I don’t know what to cook. I feel raw spices adds great flavour to any dish. My recipe is very close to yours and as I am unable to decide what to cook today so this is my dish of the day.

    Reply
  30. Sindhu Vinod Narayan says:
    2 years ago

    This is one of my favourite dishes. I can eat paneer in any form , paneer lover I must say. I will definitely try it this way.

    Reply
  31. MeenalSonal says:
    2 years ago

    Butter paneer is the most yummy dish on earth as per me 🙂 I really liked the simplicity of your recipe. Will try it out in your way the next time. Hope I could meet the same texture and taste.

    Reply
  32. Noor Anand Chawla says:
    2 years ago

    In my home we call this dish Shahi Paneer. So nice to see you making the most of your visit to Mexico!

    Reply

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