How to Make Butter Paneer at Home: A Delicious Indian Delight
Butter Paneer, also known as Paneer Makhani, is one of the most popular North Indian dishes enjoyed across the globe. With its rich, creamy tomato-based gravy and soft cubes of paneer (Indian cottage cheese), it’s a comforting and flavorful vegetarian dish perfect for any occasion. The good news is—you can make it easily at home with a few simple ingredients. Here’s how:
Ingredients:
For the Gravy:
- 2 tbsp butter
- 1 tbsp oil
- 1 large onion, chopped
- 3-4 tomatoes, roughly chopped
- 4-5 cloves garlic
- 1-inch piece of ginger
- 2-3 green cardamoms
- 1 small cinnamon stick
- 4-5 cashew nuts
- 1 tsp red chili powder (Kashmiri chili for color)
- Salt to taste
- 1 tsp sugar (optional, to balance acidity)
- ½ cup fresh cream
- ½ tsp garam masala
- 1 tsp kasuri methi (dried fenugreek leaves)
- Water as needed
For the Paneer:
- 200-250 grams paneer, cubed
- 1 tbsp butter or oil (for light frying, optional)

Instructions:
Step 1: Prepare the Gravy Base
- In a pan, heat 1 tbsp oil and 1 tbsp butter.
- Add onions, garlic, ginger, cardamom, cinnamon, and cashew nuts. Sauté until onions are golden.
- Add chopped tomatoes and cook until soft.
- Add red chili powder and a pinch of salt. Cook for a few more minutes.
- Turn off the heat and let the mixture cool.
- Blend it into a smooth puree using a mixer or blender. Strain if you want an extra smooth texture.
Step 2: Cook the Gravy
- In the same pan, heat 1 tbsp butter.
- Add the blended gravy and cook on medium heat for 7–10 minutes, stirring occasionally.
- Add water as needed to adjust the consistency.
- Stir in fresh cream, sugar (if using), garam masala, and crushed kasuri methi.
- Simmer the gravy for another 3–4 minutes.
Step 3: Prepare the Paneer
- Lightly sauté the paneer cubes in butter for extra flavor (optional), or use them directly for a softer texture.
- Add paneer to the gravy and simmer for 3–5 minutes.

Serving Suggestions:
Serve Butter Paneer hot, garnished with a swirl of cream and chopped coriander leaves. It pairs beautifully with naan, roti, paratha, or steamed basmati rice.
Tips for Best Results:
- Use Kashmiri chili powder for a bright red color without too much heat.
- Always add cream at the end to avoid curdling.
- Soak store-bought paneer in warm water for 10 minutes to soften it before cooking.
With this homemade Butter Paneer recipe, you can bring restaurant-style taste to your dining table in under an hour. Ready to give it a try tonight?