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Paneer Butter Masala Recipe Restaurant Style | Sidedish for Chapati/Roti

Creamy tomato based gravy made with India cottage cheese aka paneer in restaurant style.
Prep Time15 mins
Cook Time30 mins
Total Time45 mins
Course: Gravy
Cuisine: North Indian
Author: Kalyani


  • Paneer - 200 gms
  • Big onion - 1 medium sized
  • Tomato - 2 medium sized
  • Ginger & garlic paste - 1 tsp
  • Cashews - 2 tbsp soaked in milk
  • Red Chili Powder - 1 Tsp
  • Coriander Powder - 2 Tsp
  • Garam masala powder - 1/2 tsp
  • Kasuri methi dried fenugreek leaves - 1/2 tsp
  • Fresh Cream - 1/4 cup
  • Salt - as required

To Temper

  • Butter - 1 tbsp
  • Oil - 1 tbsp
  • Bay leaves - 1 small
  • Cinnamon - 1-inch piece
  • Cloves - 2
  • Cardamom - 1



  • Grind tomatoes in a blender to a smooth paste. Tomato paste is ready and set this aside.┬áCut the paneer into bite-sized cubes and fry it in a tsp of oil until golden brown. Keep it immersed in warm water till use.
  • Finely chop the onions or grind it in a blender to make a smooth paste. Keep aside. Soak cashews in warm milk for 10 minutes and grind it with milk to a smooth paste. Keep the cashew paste aside.


  • Heat oil in a pan and add the items to temper. Saute them for a minute. Add onion paste or finely chopped onions now along with ginger garlic paste and fry them well.
  • Once the onions become transparent, add the tomato paste along with red chili powder, garam masala and Coriander powder. Give a quick stir and mix it well. Then fry the paste until it becomes slightly thick and the raw smell of tomatoes leaves. Then add the cashew paste and mix it well with the gravy.
  • Fry the cashew paste for three minutes in low flame. Now add kasuri methi and fry for a minute. Then add 1/2 cup of water and mix it well. Boil the gravy in low medium flame for 5 minutes.
  • Once the gravy becomes thick and oil starts collecting on the edges of the pan, add fresh cream and give a quick stir. Then add fried paneer pieces and mix it with the curry. Fry it for 2 more minutes. Switch off the flame once done.