Paneer or cottage cheese is a common ingredient in the Indian vegetarian cuisine. It is made by curdling cow milk with lemon juice. It can be used in various dishes alone or along with other vegetables like in kurma.

 One of the famous Indian dishes is the paneer butter masala. It is a rich, delicious creamy gravy which goes well with naan, roti, chapati and any bread variety. You can never say no to such a sumptuous dish. It is sure to get your guests impressed.

 I have tried at many restaurants but the one I had at a friends’ dinner was so special that it’s taste still lingers when I think of it. I got the recipe ASAP and still enjoy making it. I think it’s the perfect recipe. Hope you will give it a try too.

For 4 servings,


  • 200 gm Paneer(cottage cheese)
  • 4 tbsp Butter
  • 2 tbsp Oil
  • Cinnamon, 2 cloves, 1 cardomom 
  • 2 onions chopped
  • 2 tomatoes chopped
  • 6 cashews
  • 1 tsp ginger garlic paste
  • 1 tsp chilli powder
  • 1/2 tsp turmeric powder
  • 1 tsp garam masala 
  • Salt
  • 1/4 cup curd
  • Water


1. In a pan, heat 1 tbsp oil and add 1 onion chopped, 1 tomato chopped and cashews. Sauté till they are mushy. Cool and blend this into a paste.

2. In the same pan, heat 1 tbsp butter. Add in cinnamon, cardomom and cloves.

3. Add in 1 chopped onion and ginger garlic paste. Sauté till translucent. Add tomatoes and sauté till mushy. 

4. Add in salt, turmeric powder, chilli powder and garam masala powder.

5. Add in the blended paste with water.

6. Add in the paneer cubes. Allow to cook for 5 minutes with lid closed.

7. Add curd and 2 tbsp butter and mix well. (You can also add 1 tbsp khova)

8. Add some dried fenugreek leaves. Simmer and switch off flame. 

Yummy paneer butter masala is ready. Serve it with chapati, naan or roti.


1. In the original recipe, the paneer cubes are shallow fried in butter before adding to the gravy. You can do this step but it might change the cube shape of paneer.