Paneer Butter Masala | Paneer Makhani

Paneer makhani (also knowns as Paneer butter masala) is a slightly sweet creamy dish of Paneer, in which the gravy is prepared usually with butter, tomatoes, cashews or cream. Masalas such as red chilly powder and garam masala are also used to prepare this gravy.
A survey found that Paneer Butter Masala was one of the top 5 food ordered at night in India.
The word makhan is a Hindi word, which means butter. So makhani means buttery. The origin of this dish was in the 1950s, when the Punjabis created this dish in Moti Mahal restaurant in Delhi. The sauce for this recipe was discovered by mixing lot of fresh butter into a tomato based curry.

There is no strict set of steps to make this gravy recipe. Below mentioned is one of the ways in which makhani gravy is prepared.
Frying cashew nuts and tomatoes and grinding both of them into a fine paste.
Adding spices like cardamom and bayleaf.
Usage of cream or sour curd into the gravy. Though in some preparation methods, only tomatoes are used.
Generous usage of butter.
Usage of garam masala, red chilly powder, kasturi methi and coriader leaves.

Paneer Butter Masala | Paneer Makhani
Prep Time
10 mins
Cook Time
30 mins
Total Time
40 mins
Recipe Creator: Bhavna
  • Onion-1 large chopped
  • Tomatoes-4 chopped
  • Paneer / Cottage Cheese-1 packet cubed around 200 grams
  • Cumin seeds / Jeerakam-1 tsp
  • Chilli powder-1 tsp
  • Coriander powder / Malli Podi-1 tblspn
  • Garam masala powder-2 tsp
  • Kasuri Methi Leaves / Dried Fenugreek Leaves-1 tblspn
  • Ginger Garlic Paste-1 tblspn
  • Milk-1 cup or as needed
  • Butter-4 tblspn
  • Oil-1 tblspn
  • Sugar-1 tsp
  • Salt to taste
  • Coriander leaves for garnishing
  1. Grind Onion and Tomato to a fine paste.Fry Paneer cubes in oil till light browned and set aside.
  2. Melt butter in the same pan in which the paneer pieces is fried.
  3. Add in cumin seeds and Ginger Garlic Paste and fry for few minutes.
  4. Add in onion and tomato puree and mix well..Cook this until oil separates from this..
  5. Add in chilli,coriander and garam masala powder in this and mix well.
  6. Season with salt and sugar.
  7. Add in kasuri methi leaves and mix well..
  8. Now add in fried paneer cubes and mix well.Pour in milk and continue stiring till it reaches the right consistency.Add more water if needed..
  9. Cover and simmer for 5 to 10 mins untill oil separates from the gravy..
  10. Garnish with cilantro and serve with roti or rice.