Hyderabadi Restaurant style Paneer Butter Masala recipe

Paneer Butter Masala stands as one of the most loved North Indian curries. Its creamy texture and buttery tomato gravy make it even more tempting. This restaurant-style paneer butter masala recipe will show you how to prepare this dish at home using simple ingredients and easy steps. 

This dish can be made for special lunches, family dinners, or festive meals.

Paneer butter masala uses soft paneer cubes, which are cooked in rich and creamy tomato-based gravy. The gravy is prepared using tomatoes, butter, cashews, mild spices, and cream.

Ingredients Needed for Paneer Butter Masala

Main Ingredients

Paneer (250 grams)— Always soak the paneer in warm water for 10 minutes to keep it soft.

Tomatoes (3 large)—Choosing ripe red tomatoes is important for a smooth and slightly tangy gravy.

Onion (1 medium) – Onion is added to add depth to the paneer butter masala gravy.

Fresh cream (3 tbsp). Fresh cream can be adjusted accordingly for lighter or richer gravy.

Cashew nuts (12-15) – Cashew nuts are soaked in warm water for 15 minutes, as it will result in a smooth and creamy paste.

Butter (2 tbsp)—I would recommend using unsalted butter for the best taste.

Ginger-garlic paste (1 tbsp)—Used to give the best aroma. 

Green chilli (1 finely chopped)—Green chilli paste can also be used.

Spices Used

Red chilli powder (1 tsp)

Turmeric powder (¼ tsp) 

Coriander powder (1 tsp)

Garam masala (½ tsp)

Kasuri methi (dried fenugreek leaves – 1 tsp)

Salt (as per taste)

Other Ingredients

Cooking oil, sugar, and water.

How to Prepare Paneer Butter Masala (Step-by-Step)

Making the Tomato Cashew Gravy

1. In a pan, take 1 teaspoon of oil, and once the oil is heated, add 1 chopped medium-sized onion.
2. Sauté the onions until they become soft and the color changes to golden brown.
3. Add chopped tomatoes and keep cooking until they become soft and pulpy.
4. Now add the soaked cashew nuts and cook it for 2-3 minutes.
5. After the mixture is cooked, switch off the stove and allow it to cool completely, as we will blend this mixture.
6. Blend mixture into smooth, fine paste and keep it aside.

Cooking the Masala

1. In the same pan, add 2 tablespoons of butter and heat it on a low flame.
2. Add ginger-garlic paste and sauté it until the raw smell disappears. 
3. Now add the previously prepared tomato-cashew paste and mix it well.
4. Make sure to cook it on medium heat flame while stirring occasionally. Keep cooking until the masala thickens and butter starts releasing from the sides.
5. Add red chili powder, turmeric powder, coriander powder, salt, and sugar in the quantities mentioned.
6. Mix it well and cook for about 2-3 minutes.

Adding the paneer cubes

1. Add ½ to ¾ cup water or any quantity to adjust the gravy consistency. Let it cook until it gets to a boil.
2. Now add the paneer cubes and mix it gently.
3. Add 3 tbsp of fresh cream and crushed kasuri methi.
4. Keep cooking on low flame for 3-5 minutes.
5. For the final step, add garam masala and give it a mix.
6. Turn off the stove, and your creamy paneer butter masala curry is ready!

Garnish the paneer butter masala with a swirl of cream and a tiny piece of butter. You can serve it hot with naan, roti, or jeera rice.  

Tips to Make Paneer Butter Masala Taste Restaurant Style

• Use ripe red tomatoes only, as they give the gravy its natural sweetness and bright color. Using sour tomatoes can ruin the balance of flavors.
• Don’t skip using cashew because its paste makes the gravy thick, smooth, and creamy and gives a restaurant-style texture. 
•  Let the tomato-cashew paste cook well until the butter releases from the sides.
• Always cook the dish on a low flame, as butter burns quickly. 
• Use Kashmiri red chilli powder if you are available with it, as it gives a beautiful red color without making the paneer butter masala too spicy.
• Always add kasuri methi at the end. It gives the dish that restaurant aroma.
•  A small amount of sugar or cream balances the tomato acidity and gives that mildly sweet taste.
• Do not fry or sauté the paneer. Add paneer directly to the gravy to keep it soft and juicy.
• Adding a little butter and a swirl of cream just before serving makes a huge difference in taste and appearance.

Variations You Can Try

Paneer Butter Masala Without Onion and Garlic

In this variation of paneer butter masala, we skip the onions and garlic completely. So increase the quantities of cashews and add a little extra cream to maintain its richness. This version is perfect for festive or satvik meals.

Dhaba-Style Paneer Butter Masala

Here, we use extra butter, more chili powder, and finish off with garnishing with butter. This version of paneer butter masala is richer. 

Paneer Butter Masala Without Cream

We replace fresh cream with full-fat milk or homemade malai, making the curry rich but slightly lighter in its texture.

Commonly Asked Questions

How do I make paneer soft in paneer butter masala?

Paneer is made soft by soaking it in water for 10-15 minutes before adding it to the gravy.

Why does paneer butter masala taste slightly sweet?

The sweetness of the paneer butter masala comes from using tomatoes, cashews, butter, and fresh cream.

Can I make paneer butter masala without using cream?

Yes, paneer butter masala can be made without using cream. Use milk or fresh malai instead of cream. 

What is the difference between paneer butter masala and shahi paneer?

The key difference between paneer butter masala and shahi paneer is that paneer butter masala is tomato-based, while shahi paneer is richer and nut-based.

How long does paneer butter masala stay fresh?

Paneer butter masala stays fresh for up to 2 days if stored in a refrigerator.

Can I use store-bought paneer for paneer butter masala?

Yes, you can use store-bought paneer. To make it soft and juicy, soak the paneer cubes in warm water for about 10–15 minutes before adding them to the gravy.