Classic Restaurant Style Paneer Butter Masala
This restaurant style paneer butter masala pairs tender, pan fried paneer cubes with a rich, glossy tomato and cashew gravy for the perfect weekend dinner.
Nailing a restaurant-style gravy at home usually feels like chasing a secret you are not allowed to know. I have tested countless variations of this paneer butter masala, and the trick is entirely in the prep. You have to soak the cashews properly so they blend into an impossibly smooth paste, and you must pan-fry the paneer briefly over high heat before it ever touches the sauce. That quick sear helps the paneer hold its structure instead of turning to mush in the pan.
A lot of people rush the masala cooking process. Give the tomatoes and whole spices the time they need to release their oils. When the oil finally separates from the paste, that is your cue that the raw flavors have cooked out. I serve this exactly how it should be enjoyed piping hot, finished with a final swirl of fresh cream and crushed kasuri methi, alongside plenty of butter naan.
Instructions
- Soak the cashews first, keeping them in boiling water for 10 to 15 minutes until softened.
- Blend the paste ingredients, grinding the soaked cashews, tomatoes, garlic, ginger, coriander stems, chilli, and spices until completely smooth.
- Heat the pan for the paneer, setting a skillet over high heat with 1 tablespoon each of oil and butter.
- Sauté the paneer cubes, adding them to the hot oil with salt and a pinch of Kashmiri chilli powder for 1 to 2 minutes until slightly golden.
- Remove the paneer immediately, transferring the cubes to a bowl so they hold their structure without overcooking.
- Prepare the gravy base, heating 2 tablespoons of oil and 1 tablespoon of butter in a wok or kadhai.
- Temper the whole spices, stirring in the cumin seeds, green cardamom, cinnamon, bay leaf, chopped garlic, and green chilli.
- Fry the chopped onions, cooking them over medium-high heat for 6 to 8 minutes until they turn light golden brown.
- Bloom the dry spices, adding the turmeric and Kashmiri red chilli powder with a splash of hot water, cooking for 2 to 3 minutes.
- Cook the blended paste, adding it to the pan with the salt and sugar, and fry over medium-high heat until the oil separates at the edges.
- Adjust the gravy consistency, pouring in 1/2 cup of hot water or more as required, and simmer for 2 to 3 minutes before tasting for seasoning.
- Finish the dish, gently stirring in the paneer, butter, kasuri methi, garam masala, and fresh cream.
- Simmer briefly, letting everything cook together for just 1 to 2 minutes until the gravy is glossy and slightly thickens, then garnish with fresh coriander.
Notes
Always use hot water when adjusting the consistency of the gravy. Adding cold water lowers the pan temperature immediately and stops the oils from emulsifying properly.
If you prefer a milder gravy, remove the seeds from the fresh green chillies before chopping them.
Store any leftovers in an airtight container in the fridge for up to three days. Reheat gently on the stove over low heat, adding a splash of water if the gravy has thickened too much in the fridge.




