Paneer Makhani (Paneer Butter Masala): A restaurant-style recipe

Paneer Makhani recipe

Paneer Makhani is one of my favorite North Indian curries to enjoy with hot parathas or naan. It is also a very popular dish to order at Indian restaurants. Soft cubes of paneer (Indian soft cheese) are dunked in a luscious tomato-based creamy sauce that is slightly sweet and not overly spicy. 

There is some debate on the internet if Paneer Makhani and Paneer Butter Masala are the same dishes.  “Makhan” in Hindi means butter so I would like to think that the gravies would be very similar. Call this dish what you like – Paneer Makhani or Paneer Butter Masala, it is rich and delicious and so easy to make at home that you don’t have to wait to order it at a restaurant. With all the butter and cream in the gravy, it is not an everyday food of course, and you can reserve it for a special occasion at home.

In this recipe article, we’ll show you how to make Paneer Makhani (Paneer Butter Masala) from scratch using fresh ingredients and a few spices. This dish is perfect for any occasion, whether you’re entertaining guests or just want to enjoy a comforting meal at home. So, let’s get started and learn how to make this mouth-watering dish that’s sure to become a favorite in your home.

What is Makhani sauce?

Makhani sauce, also known as butter masala sauce or tomato cream sauce, is a popular North Indian sauce made with tomatoes, butter, cream, and a blend of aromatic spices. The sauce typically includes ingredients such as onion, ginger, and a variety of spices, including garam masala and cumin. The sauce is often used in Indian cuisine to prepare dishes such as paneer makhani. Makhani sauce has a rich, creamy texture and a mildly sweet and tangy taste.

The Makhani sauce recipe provided here is very versatile and can be used in several different ways. I make a double batch of the sauce and freeze half of it. I use it as a pizza sauce for my Indian-style Naan pizzas. And you are not limited to paneer for the makhani gravy. The Makhani sauce would go well with cauliflower and even boiled baby potatoes. 

Ingredients to make Paneer Makhani

Paneer Makhani ingredients
Makhani gravy ingredients
  • 14 oz paneer, cut in 1-inch cubes
  • 1 tablespoon cooking oil
  • ¼ cup raw cashews, about 8 pieces
  • 2 dry red Kashmiri Chilies
  • 1 teaspoon jeera
  • 1 inch piece of ginger
  • 1 Bay leaf
  • 1 medium yellow onion, about 1 cup roughly chopped
  • 3-4 large Roma tomatoes, about 3 cups roughly chopped
  • 2 tablespoons unsalted butter
  • 1 tablespoon Deggi Mirchi or Kashmiri Mirch powder
  • 2 tablespoons tomato paste
  • 1 tablespoon honey
  • 1 teaspoon garam masala
  • 1 tablespoon kasoori methi
  • ½ cup heavy cream

How to make Restaurant-style Paneer Makhani at home?

Here is how you can make paneer makhani (paneer butter masala):

  1. Chop the tomatoes and onion into large pieces. 
  2. Heat 1 tablespoon oil in a pan. 
  3. Once heated, add cumin seeds, ginger, dry red chilies, bay leaves, and cashews, and roast for a minute on medium flame. 
  4. Add chopped tomatoes and onions to it. 
  5. Cook on medium flame stirring occasionally. 
  6. Cook for 12-15 minutes till the tomatoes soften and the onions are browned a bit. 
  7. Turn off the flame and let this mixture cool to room temperature.
  8. Remove bay leaves. 
  9. Add the cooled mixture to a blender with about 1 cup of water and blend smoothly. 
  10. While the tomato/onion mix is cooling, soak paneer cubes in hot water for 20-30 minutes. 
  11. Heat butter in the same pan that was used to roast the tomatoes/onions. 
  12. Once heated, add Deggi Mirchi and cook for 30 seconds.
  13. Add the blended gravy and tomato paste to the pan. You can adjust the consistency by adding more water at this point.
  14. Add the paneer pieces and bring the gravy to a boil.  
  15. Add kasoori methi, honey and garam masala. Stir to combine. 
  16. Now add the cream (reserving a spoon for garnish) and cook for 2 minutes and then turn off the heat. 
  17. Serve hot paneer makhani with parathas, naan, or rice. 
Makhani gravy process

What you see in the picture above:

  1. Tomato, onion, cashews, and spices cooked and being cooled.
  2. Blended gravy before the addition of heavy cream.

Recipe tips to make Paneer Makhani (Paneer Butter Masala)

  • I like to use store-bought paneer for this recipe as I think it holds its shape better.  Paneer cubes should be soaked in hot water for 20-30 minutes to soften them.  This step is optional but highly recommended. 
  • It is very important to let the cooked tomato/onion mixture cool before you blend it.  If you blend the hot mixture, it may blow up. 
  • If you are not using a high-speed blender and would like a smooth gravy, strain the gravy after you blend it. 
  • Add cream at the right time: Cream is a crucial ingredient in Paneer Makhani, as it gives the sauce its creamy texture and mild sweetness. However, it’s essential to add the cream at the right time. Add it towards the end of cooking and simmer for a few minutes. This prevents the cream from splitting and enhances the flavors.
  • This dish is very mild with the use of Deggi Mirch.  It is mainly for color and flavor but is not overly spicy. If you like your dishes spicy, add ½ teaspoon of spicy red chili powder also. 
  • The Makhani gravy thickens quite a bit over time so if you are re-heating the gravy to serve, you will have to add some hot water to adjust the consistency. 

FAQs – Paneer Makhani Recipe (Paneer butter masala)

Can I make the Makhani gravy in advance?

Yes, the Makhani gravy can be made 2-3 days in advance (minus the paneer and heavy cream) and properly stored in the refrigerator.  On the day of serving, heat it with paneer cubes and heavy cream. The gravy will have thickened so you will need to add some water to adjust the consistency.  The Makhani gravy can also be frozen in an airtight container for up to 2 months. 

Can I lighten the Paneer Makhani by avoiding butter and heavy cream in the recipe?

Yes, you can, but then will it be Paneer Makhani? This is not a diet-friendly dish but to maintain the authentic taste, I would not recommend skipping on the heavy cream. 

Can I make the paneer makhani gravy without onions?

Yes absolutely. To make a Jain version of Paneer Makhani, you can skip the onions and increase the number of tomatoes.  You may have to add some additional sweetness as tomatoes can be tart. 

Can I skip the tomato paste to make the Makhani sauce?

Store-bought tomato paste is a very concentrated form of tomato. It gives the gravy a nice depth of taste and color.  But if you do not have access to it, you can certainly skip it. 

Is this recipe of Paneer Makhani gluten-free?

Yes, this recipe is gluten-free. Just check to make sure that the garam masala you are using is gluten-free.  Serve it with some basmati rice and you have a nice gluten-free dinner.

Other Restaurant Style North Indian dishes to try

Hasselback Dum Aloo
Mixed Vegetable Paneer Masala
Malai Kofta

Recipe Card- Paneer Makhani

Paneer Makhani (Paneer Butter Masala)

Paneer Makhani (Paneer Butter Masala)

Make restaurant style Paneer Makhani at home

Recipe by Divya Jhaveri
5 from 16 votes
Course: MainCuisine: IndianDifficulty: Medium
Servings

8

servings
Prep time

20

minutes
Cooking time

40

minutes
Total time

1

hour 

Ingredients

  • 14 ounce paneer, cut into 1 inch pieces

  • 1 tablespoon cooking oil

  • 1/4 cup raw cashew, about 8 pieces

  • 2 dry red chilies

  • 1 teaspoon cumin seeds (jeera)

  • 1 piece piece of ginger

  • 2 bay leaves

  • 1 medium Yellow onion, roughly chopped

  • 4-5 large Roma tomatoes, roughly chopped

  • 2 tablespoons unsalted butter

  • 1 tablespoon Deggi or Kashmiri Red chili powder (mildly spicy)

  • 2 tablespoons tomato paste

  • 1 tablespoon Honey

  • 1 teaspoon Garam masala

  • 1 tablespoon kasoori methi

  • 1/2 cup Heavy cream

  • salt to taste

Method

  • Chop the tomatoes and onion into large pieces. Heat 1 tablespoon oil in a pan. Once heated, add cumin seeds, ginger, dry red chilies, bay leaves, and cashews, and roast for a minute on medium flame. Add chopped tomatoes and onions to it. Cook on medium flame stirring occasionally. Cook for 12-15 minutes till the tomatoes soften and the onions are browned a bit.
  • Turn off the flame and let this mixture cool to room temperature. Remove bay leaves. Add the cooled mixture to a blender with about 1 cup of water and blend smoothly.
  • While the tomato/onion mix is cooling, soak paneer cubes in hot water for 20-30 minutes.
  • Heat butter in the same pan that was used to roast the tomatoes/onions. Once heated, add Deggi Mirchi and cook for 30 seconds. Add the blended gravy and tomato paste to the pan. You can adjust the consistency by adding more water at this point. Add the paneer pieces and bring the gravy to a boil. Add kasoori methi, honey and garam masala. Stir to combine. Now add the cream (reserving a spoon for garnish) and cook for 2 minutes and then turn off the heat. Serve hot paneer makhani with parathas, naan, or rice.

Recipe Video

Tips

  • It is very important to let the cooked tomato/onion mixture cool before you blend it.  If you blend the hot mixture, it may blow up. 
  • If you are not using a high-speed blender and would like a smooth gravy, strain the gravy after you blend it. 
  • Add cream at the right time: Cream is a crucial ingredient in Paneer Makhani, as it gives the sauce its creamy texture and mild sweetness. However, it’s essential to add the cream at the right time. Add it towards the end of cooking and simmer for a few minutes. This prevents the cream from splitting and enhances the flavors.
  • This dish is very mild with the use of Deggi Mirch.  It is mainly for color and flavor but is not overly spicy. If you like your dishes spicy, add ½ teaspoon of spicy red chili powder also. 
  • The Makhani gravy thickens quite a bit over time so if you are re-heating the gravy to serve, you will have to add some hot water to adjust the consistency. 
 

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