Butter paneer, butter paneer masala, paneer makhanwala, or paneer makhani are all the same names for the gorgeous sauce for paneer. This is hands down my favourite comfort food. The paneer melts in your mouth while the masala tingles the right spice senses, leaving the cream and ghee to gently soothe the flavours down to the perfect note.
This dish is made with simple pantry ingredients such as onions, tomatoes, ginger, garlic, cashews, cream and water. You need to make the masala with the spices that are easily available in your local Indian grocery store.

How To Make Paneer For Butter Paneer
You can use store-bought paneer for this dish or make it at home yourself. My fool-proof recipe to make paneer at home is super simple. It just requires a bit of time. The store-bought brands I use are this and this.
What To Pair This With
Try this if you are having a cheat day, because it is definitely not low on the calorie scale. But it’s so worth the cheat, especially when you pair it up with fresh, crispy- soft warm naan!
Don’t forget to tag me or send me your recreations if you make this. I would love to share!
Easy and Simple Butter Paneer
The Veggie WifeyEquipment
- 1 Meyer Nonstick Chef’s Pan (10.25”)
- 1 High-Speed Blender
- 1 Chopping Board
Ingredients
- 1 tbsp of ghee
- 1 tbsp grated garlic
- 2 tsp grated ginger
- 125 grams onion diced
- 2 bay leaves
- 1/4 cinnamon stick
- 2 black cardamoms or normal cardamoms will do
- 2 tbsps methi leaves
- 3 medium tomatoes diced. Make sure you use high-quality tomatoes for this dish. It really adds to the flavour and colour.
- 1 tsp chilli powder really hot
- 1 tsp turmeric powder
- 1 tsp salt or more to taste
- 1 tsp coriander powder
- 1 tsp cumin powder
- 1 tsp garam masala
- 1/2 cup of cashew nuts you can sub with pine nuts
- 1 cup water
- 2 tbsps of unsalted butter
- 1/2 cup cooking cream This is optional. You can use soy cream for vegans
- 200 grams malai paneer cubes recipe in a previous post buying a ready-made packet will do
Instructions
- Place your Meyer’s Chefs Pan over medium heat
- Add the ghee, let it heat up
- Sauté the onions until they are translucent
- Add the tomatoes and sauté again until the water from the tomatoes evaporates
- Add ginger, garlic, bay leaves, cinnamon, cardamoms, and methi leaves. Gently stir it in alltogether. You want to make sure you don’t break the bay leaves, cinnamon stick and cardamoms as you’ll need to take it out before blending.
- Cover the lid and let it cook on medium to high heat, for 5 mins, stirring occasionally
- Open the lid, then add the cashews and water. Stir it in and cover the pan for another 5 minutes.
- Once most of the water has evaporated from the mixture, turn off the heat and set aside to cool. Remove the bay leaves, cinnamon and cardamoms.
- Place the mixture into a blender and blend until smooth
- In the same pan, pour another tbsp of ghee and chilli powder, let it melt and simmer together for 30 seconds.
- Saute the paneer until it turns golden and crisp.
- Add the smooth tomato mixture from the blender into the pan and stir it in together for another 5 mins
- Add the salt, turmeric powder, cumin powder, coriander powder and garam masala. Stir in well. If you think it lacks in any chilli or salt, add more here.
- Turn the heat to low and add cream. Stir it in and let it simmer for another 5 minutes. Cover the lid as this mixture splatters.
- Garnish with coriander and another sprinkle of methi leaves before serving. You can add another tbsp of cream on the top here in a swirl for a beautiful finish.






