Easy 30-minute recipe for Paneer Butter Masala, or Paneer Makhani, an Indian vegetarian favorite. Also known as Butter Paneer, this rich & creamy curry is made with paneer (Indian cottage cheese), spices, and tomatoes and finished with a touch of heavy cream.
Pair it with homemade Naan and enjoy a restaurant-quality Indian feast in the comfort of your home!
Want to save this recipe?
We'll email this post to you, so you can come back to it later!
This paneer butter masala is a vegetarian variation of the popular north-Indian classic called Butter Chicken. In this mild curry, firm Indian cottage cheese cubes (Paneer) is cooked in a rich and buttery tomato sauce. It's a better-than-takeout meal that comes together in the Instant pot in just 25 minutes!
Fun fact: The original paneer masala dish was created in the 1950s by the chef of a renowned restaurant in New Delhi, called 'Moti Mahal Delux'.
Jump to:
Let's get started and make a restaurant-quality Butter Paneer recipe, aka, Paneer Makhani!
Ingredients- Notes & Substitutions
This easy paneer butter masala recipe is made up of simple ingredients, most of which you probably already have around.
Paneer: you can either use homemade paneer or you can find paneer blocks in most Indian and international food stores. You may be able to find it in select Costco, Whole Foods, and Safeway locations.
Unsalted Butter: you can also use ghee or light olive oil.
Aromatics & Seasonings: you'll use a blend of ginger, garlic, turmeric powder, Kashmiri chilli powder, paprika (regular), garam masala, and coriander powder. If you can't find Kashmiri red chili powder, replace it with an equal amount of paprika + a pinch of cayenne.
Diced Tomatoes: you can use canned diced tomatoes or puree 4 ripe Roma or plum tomatoes yourself. If using any other kind of tomato, discard the seeds before pureeing.
Heavy Whipping Cream: gives the sauce a smooth texture and rich flavor. Alternatively, use full-fat coconut cream for a dairy-free alternative.
Herbs: I use a combination of Kasoori Methi (aka dried fenugreek leaves) and fresh cilantro, but if you can't find Kasoori Methi, cilantro alone will work as well.
Sugar: you can use sugar, honey, or agave syrup. The sweetener is used to help balance out the acidity of the tomatoes. Use more or less to taste and feel free to leave it out if your curry tastes perfect as-is!
Scroll below for the printable recipe card and ingredient measurements.
Variation - Vegan Paneer Butter Masala: For a vegan option, use extra-firm tofu cut into ½-inch pieces instead of paneer. Replace ghee with olive or any neutral oil. For thickening, add coconut cream instead of heavy whipping cream.
Scroll to the recipe card for a detailed list of ingredients and quantities.
How to Make Paneer Butter Masala
Here are the step-by-step photos and instructions to make this restaurant-quality instant pot paneer butter masala right at home!
Saute aromatics: Hit SAUTE on your instant pot. When it becomes hot, add in butter or ghee, minced ginger, and garlic. Saute for 30 seconds- 1 minute, then cancel SAUTE. (pic 1)
Add tomato & spices: Pour in water and deglaze any brown bits stuck in the pot. Add in tomato puree and spices, stir, then close and lock the lid. (pic 2 & 3)
Pressure Cook: Cook on high pressure for 4 minutes. When the cooking time is up, manually release the pressure. (pic 4)
Simmer paneer: Turn on Saute. Add in paneer cubes, dried fenugreek leaves, sugar (or honey), and heavy whipping cream (or coconut cream). Stir, then simmer for 3-4 minutes until the paneer softens. Check for seasoning and cancel saute. (pic 5 & 6)
Garnish & Serve: Garnish with chopped cilantro and serve with cumin rice, spinach rice, or homemade naan. (pic 7 & 8)
Tips for soft paneer: Be careful not to overcook your paneer as that can become rubbery! If using a pre-frozen or store-bought paneer, soak the cubes in hot water for 5-10 minutes. That softens the paneer cubes.
Alternate Method: Stovetop Paneer Butter Masala
If you don't have an instant pot, this paneer butter masala recipe can easily be made on the stove as well. Here's how:
- Heat a large skillet over medium-high heat, then add in butter (or ghee.) Once the butter is melted, add in the ginger and garlic and saute for 30 seconds-1 minute.
- Stir in water, tomato puree, and seasonings, then cover and cook until heated through, about 10 minutes.
- Remove the lid, then add in paneer cubes, herbs, sugar, and heavy cream. Stir, then let simmer for 3-4 minutes to thicken.
Serving Suggestions
I serve butter paneer right away for the best flavor and texture. Enjoy a complete vegetarian Indian meal by pairing it with any of these popular Indian recipes:
- Rice: serve it alongside steamed basmati rice, spinach rice or jeera rice.
- Bread: pair it with a side of homemade Naan, Roti, or Paratha.
- Low Carb Sides: serve it with Indian cauliflower rice, or low-carb tortilla or almond flour tortilla.
- Veggies: serve it alongside a veggie-heavy side such as Aloo Gobi, Bhindi Masala, or Beetroot Thoran.
How to Store
Store leftover butter masala in an airtight container in the fridge for 4-5 days. To reheat, microwave, or warm on the stove. You can also freeze Butter Paneer for up to 3 months.
To reheat, thaw it overnight in the fridge and warm in the microwave or on the stovetop.
Recipe Tips & Notes
- Tomatoes: Ripe tomatoes are critical to the taste of this recipe. If using fresh, use bright red 'ripe' tomatoes, preferably plum/Roma tomatoes. Alternatively, diced or crushed tomatoes work well too. I prefer them over tomato sauce, which tends to be more tart.
- Paneer: If using frozen paneer, for best results, thaw it overnight in the fridge. For an authentic taste, it is important to simmer the sauce till the paneer softens.
- Make it Vegan: You can make this recipe vegan by replacing butter with any clear oil, and heavy whipping cream with coconut cream. Instead of paneer, add cooked chickpeas or extra-firm tofu.
- Kashmiri Red Chili powder: I add this Indian spice for its vibrant color and mild heat. If you cannot find it, substitute with equal amount of regular paprika.
- To Freeze this dish, skip the heavy cream and cool completely. Transfer it to an airtight container and freeze for up to 4 weeks. To reuse, thaw it overnight in the refrigerator, bring it to a simmer on the stove or Instant Pot, add heavy whipping cream and simmer for 2-3 minutes.
- Water adjustment: I've tested this recipe in a 3qt and 6qt Instant Pot pressure cooker. If using an 8qt size pressure cooker, add 1 cup water. You may have to simmer for a few extra minutes towards the end to cook it off.
Frequently Asked Questions
Paneer tikka masala is made with grilled paneer, has more texture in the sauce, and tends to be spicier. Paneer butter masala, on the other hand, has a smoother texture, is milder in heat, and is made with raw paneer.
Although both dishes are made with tomato and butter-based gravy, paneer tikka masala tends to be slightly spicier and utilizes onion with aromatics. In some recipes, the paneer is also marinated, cooked on skewers in a tandoor, then added into the gravy. Paneer butter masala, on the other hand, is sweeter and creamier, does not include onion, and the paneer is usually raw when it's added into the gravy.
You can easily substitute the cream in this recipe for full-fat coconut milk, tomato cashew paste, or a dairy-free alternative to heavy whipping cream. Don't worry. You'll still get that creamy texture and rich flavor.
Other Paneer Recipes to Try
These recipes are part of the Indian Paneer Recipes Collection:
📖 Recipe
Paneer Butter Masala | Paneer Makhani
Want to save this recipe?
We'll email this post to you, so you can come back to it later!
Video
Equipment
Ingredients
- 14 ounces paneer cubed in ½ inch pieces (2 cups)
- 1 tablespoon ghee or unsalted butter
- 1 tablespoon ginger Paste (1-inch ginger)
- 1 tablespoon garlic paste (3 cloves) or minced garlic
- 1 teaspoon salt adjust to taste
- ½ teaspoon turmeric powder
- 1 teaspoon kashmiri red chili powder (see notes for mild)
- 1 teaspoon paprika
- 2 teaspoons garam masala (reduce to 1 teaspoon for mild flavor)
- 2 teaspoons coriander powder
- ½ cup water
- 14 ounces diced tomatoes (1 can) or 3-4 ripe Roma tomatoes, pureed
Add after cooking
- ½ cup heavy whipping cream or, full-fat coconut milk for dairy-free
- 1 tablespoon kasoori methi (dried fenugreek leaves) (optional)
- 1-2 teaspoons sugar or honey or agave syrup, adjust to taste
- 2-3 tablespoons fresh chopped cilantro for garnish
Instructions
- Turn on SAUTE. Wait for the pot to get hot, takes about 30 seconds. Add butter or ghee, minced ginger and garlic, and saute for 30 seconds-1 minute to cook off the raw flavor. Cancel Saute.
- Add water and deglaze any brown bits that may have stuck at the bottom. Add tomato puree and spices. Stir and lock the lid. Select Pressure Cook/Manual and cook for 4 minutes at high pressure, on sealing mode.
- When cooking is complete, manually release the pressure by following your cooker directions (Quick Release). Open the lid after the pin drops.
- Select Saute. Add paneer cubes, dried fenugreek leaves (Kasoori Methi), sugar and heavy whipping cream (or coconut milk) and stir. Simmer for 3-4 minutes, till paneer softens and sauce thickens to your liking.
- Garnish with chopped cilantro and serve with cumin or spinach rice.
Notes
- Tomatoes: Ripe tomatoes are critical to the taste of this recipe. If using fresh, use bright red 'ripe' tomatoes, preferably plum/Roma tomatoes. Alternatively, diced or crushed tomatoes work well too. I prefer them over tomato sauce, which tends to be more tart.
- Paneer: If using frozen paneer, for best results, thaw it overnight in the fridge. For an authentic taste, it is important to simmer the sauce till the paneer softens.
- Make it Vegan: You can make this recipe vegan by replacing butter with any clear oil, and heavy whipping cream with coconut cream. Instead of paneer, add cooked chickpeas or extra-firm tofu.
- Kashmiri Red Chili powder: I add this Indian spice for its vibrant color and mild heat. If you cannot find it, substitute with equal amount of regular paprika.
- To Freeze this dish, skip the heavy cream and cool completely. Transfer it to an airtight container and freeze for up to 4 weeks. To reuse, thaw it overnight in the refrigerator, bring it to a simmer on the stove or Instant Pot, add heavy whipping cream and simmer for 2-3 minutes.
- Water adjustment: This recipe was tested in a 3qt and 6qt Instant Pot pressure cooker. If using an 8qt size pressure cooker, add 1 cup water. You may have to simmer for a few extra minutes towards the end to cook it off.
Nutrition
This was recipe was originally published in 2018 and has been updated with new photos and step by step directions.
Sabba says
Just made this with extra firm tofu since the store was out of paneer, and OMG. An instant staple. Thank you for sharing.
Aneesha says
Yay! I'm so glad you enjoyed it, Sabba!
Jassi says
I have a son who is allergic to tomatoes. Do you know what I could substitute for tomatoes.( I know its so hard as tomatoes are in almost every Indian dish)?
Kind regards
Aneesha says
Hi Jassi, you can try a combination of carrots and roasted red peppers- puree it just like you would do with tomatoes. That's the closest texture and taste I can think of. Hope your son enjoys it!
Tiffany says
for recipes that use tomato paste, its recommended that you swap it for tamarind paste. lots of stores sell it in a block near the other Indian seasonings like garam masala and curry powder, but I've seen recipe videos use some that come in a tube that I haven't seen in my stores. if you Google tomato substitutes you'll find a website that lists a bunch, I found one that listed several foe different uses, I remember one suggesting squash or pumpkin because its mild and sweet and with all the other seasonings it works well with curry. I haven't tried it, but it was suggested for stuff like butter chicken. maybe that plus a but of tamarind paste would go well for this recipe as well.
Aneesha says
Hi Tiffany, thanks for offering your feedback, but I would have to disagree on tamarind being a substitute for tomatoes in this recipe. That will alter the taste of the dish entirely. Perhaps, you can check out my reply, along with some more options listed in the recipe notes.
Jessica says
This recipe is so simple yet so scrumptious. I made the stovetop version. I didn’t even purée the tomatoes, just minced them and they ended up as purée after cooking anyway. Great served with rice. I am definitely making it again. Thanks for the recipe!
Aneesha says
Hi Jessica, that's awesome! So glad you enjoyed it. Thanks for taking the time to rate the recipe!
Heather Auman says
Had Paneer Masala at an Indian restaraunt and wanted to try making it at home - but yours is even better!! And the Instant Pot adapatation makes it quick enough for any day of the week. Thanks much for this easy recipe that tastes so professional.
Aneesha says
Hi Heather, thank you so much! I'm so happy you enjoyed this recipe- thanks for taking the time to post a review!
Kelvi says
This was amazing. Thank you so much. Incredibly easy and tasty.
Aneesha says
Hi Kelvi, thank you, I'm so glad you enjoyed it!
Nayomi says
Such a simple yet rich and flavorful dish! Thank you for sharing. So tasty and easy to make. Love it.
Aneesha says
Hi Nayomi, thank you! I'm so glad you enjoyed it!
Nayomi Sajan says
We have made this a few times already using tofu instead of paneer and it was AMAZING each time.
Thanks for a wonderful instantpot recipe. Love it 🙂
Aneesha says
Hi Nayomi, Thank you so much! I'm so glad you enjoy this recipe, it's one of my family's favorite too!
snigdha says
hello, when freezing, should we add the paneer or no? skip paneer and heavy cream or just the heavy cream? thanks so much this is the best recipe yet.
Aneesha says
Hi Snigdha, thanks a lot, I'm so glad you enjoy this recipe. For freezing, skip the cream for sure. Skip the paneer if you can, but if it's already made, no problem. For reusing, heat it well until the paneer becomes soft again.
Anu says
Amazing and just like restaurant style paneer makhani! I followed the recipe almost exactly (except used crushed tomatoes by preference) and this turned out great!
Aneesha says
Hi Anu, thank you! I am so glad you enjoyed it! It's a personal favorite. I hope you try other recipes too! Thanks again.
Vernadette Harris says
I first looked at this recipe and thought to myself, "Burn notice." But I saw reviews with no mention of a burn notice and thought perhaps I was wrong! No, I was not wrong. I received the burn notice before the IP had even reached the 4 minute cook timer. I highly recommend that this recipe use the pot-in-pot method. As it stands, I only have one package of paneer on my truck so I will NOT be using it in a substandard, scorched sauce. I'm not very happy to be making the sauce all over again but better that than wasting precious paneer.
Aneesha says
Hi there, I'm sorry you had that experience, but I've made this recipe countless times and never had that problem. And like you mentioned, readers have tried it and not had that problem either. The liquid from the diced tomato can is usually enough. I would suggest 'deglazing' you pot before you close the lid. That seems to be the biggest cause of burn signs. But if you still feel like the water is less, add 1/2 a cup or so and then simmer it down after pressure cooking. I hope you give this recipe another shot, it's worth it I promise 🙂
Pooja says
Hi Aneesha!
This recipe is fantastic! I've had nothing but rave reviews from my family and friends (both Indian and non-Indian). I've made this in the 3qt IP, but I just bought a 6 qt IP recently. I wanted to ask and double-check, to make this recipe in the 6 qt IP, do I just double the measurements?
Thanks so much for sharing this! I get asked to make this often!
Aneesha says
Hi Pooja, thank you so much for your sweet words. I am very glad you enjoy it. I'd love it if you can click on the stars and rate this recipe please. To double this recipe, simply multiply the measurements, but the cook time stays the same. Enjoy!
Douglas Hernandez says
This is just perfection! I made this today and I had to come back to the blog to say thank you!
Aneesha says
How sweet of you, thank you!!I am super happy that you enjoyed it so much!
Arathi says
Such a fantastic recipe. Extremely easy too. My college kid who had zero experience in cooking started making this often because of the simplicity and amazing taste of the recipe . Thank you so much
Aneesha says
Hi Arathi, that is awesome! The reason I started this blog was to make cooking easy for the next generation. Sounds like I'm getting there 🙂 Thanks so much for sharing this with me. I'd love it if you can rate this recipe by clicking on the stars ????
Anna J says
Aneesha, I make this dish all the time! It's so delicious, I'm so glad I found your blog! I've been wanting to cook more Indian food as it is one of my favorite cuisines, but as a white girl from the southern US, I've had minimal exposure. This recipe is so great for a beginner like me. My husband called on the way home from work and asked what I was doing. I said, "Cooking paneer." He said, "THE paneer!?!? WOOO!!"
All that to say....we love this recipe. Thanks for sharing it with us.
Aneesha says
Hi Anna, thank you for such sweet words. I am so glad you and your husband enjoyed this recipe so much. It's one of our favorite too. Since you enjoy paneer, I'd recommend the Saag Paneer recipe too, it has been enjoyed by many readers. And thanks again for making my day ????
Jacob says
Love Paneer and love butter masala. Got to try this.