Butter Paneer Masala

June 16th, 2007 filed under Gluten Free, Paneer (Indian Cheese), Vegetables Curry / Gravy
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Butter Paneer Masala is a rich entre made with Indian cheese and a creamy sauce. This dish is tasty when served over white rice or with Naan or Tandoori Roti.

Serves 2 to 4Butter Paneer Masala


  • 1/2 lb. paneer (cubed)
  • 2 medium tomatoes
  • 1 green chili
  • 1/4 inch piece ginger
  • 1/2 cup green peas (optional)
  • 1/2 cup yogurt, whipped
  • 2 tablespoons oil
  • Pinch of asafetida (hing)
  • 1 teaspoon cumin seeds (jeera)
  • 1 tablespoon coriander powder (dhania)
  • 1/2 teaspoon turmeric (haldi)
  • 1/2 teaspoon red chili powder (lal mirch)
  • 2 bay leaves (tajpat)
  • 1 teaspoon salt adjust to taste
  • 1/2 teaspoon garam masala
  • 1 teaspoon cornstarch
  • 2 tablespoons chopped cilantro (Green coriander)
  • 1 teaspoon sugar (optional)


  1. Deep-fry the paneer on low-medium heat until the paneer has a little golden- brown color. Set aside.
  2. Blend tomatoes, green chilly and ginger to make a puree.
  3. Heat the oil in a saucepan. Test the heat by adding one cumin seed to oil; if seed cracks right away oil is ready.
  4. Add hing and cumin seeds.
  5. After the cumin seeds crack, add the tomato puree, coriander powder, turmeric, red chili powder and bay leaves. Cook for about 4 minutes on medium heat.
  6. Tomato mixture will start to leave the oil and will reduce to about half in quantity.
  7. Add the whipped yogurt into the gravy. Stir occasionally for about 3 minutes on medium heat.
  8. To thicken the gravy, dissolve the cornstarch in 3 tablespoons of water and add to the gravy.
  9. Add the green peas and paneer. Let it cook for a few minutes until the peas are tender.
  10. Add the garam masala and cilantro. Add a little sugar if the gravy is sour.


  1. You can substitute the yogurt with heavy cream for a richer flavor.
  2. 1 tablespoon of fresh or dried methi leaves (Fenugreek leaves) can be added at the end.
  3. Add in the yogurt powder of 4 to 5 cashews to make it creamier.
  4. This gravy can be used in any combination of vegetables you desire.
  5. This recipe is only a method – feel free to be creative and experiment!

If you enjoyed the recipe for Butter Paneer Masala, here are more great recipes you should try from Manjula's Kitchen.

150 Responses to “Butter Paneer Masala”

  1. sathya priya says:

    You have wonderful set of recipes ji.I am your fan .I used to watch your pani puri in youtube.You have such a wonderful collection of recipes.By the way this looks delicious.

  2. Ginny says:

    What a wonderful website. Had I known about it sooner I would have been making my own paneer sooner. I want to know specifically what kind of milk I should use to get the flavor of paneer I find in Mumbai when I visit? Is it goat, buffalo or cow milk I should be using? And what percent? PErhaps it does not make a difference. Thank you for your quickest response. I so want to make this soon.

  3. frumgirl says:

    Hello Manjulaji–I made this for dinner two nights ago along with paneer from your recipe. It was so very delicious. I really appreciate you taking the time to put your recipes and videos on your website so everyone can learn to cook Indian food. I have tried several other Indian cooking websites and actual cookbooks but the food never turns out as good as yours. Also, the amount of salt is always perfect in your recipes!

  4. G.S.SURI says:

    Wonder ful recipe (Paneer Tikka & Masala Paneer) Keep up the good job!

  5. Nandini says:

    Nice one! I have tried a few of your recipes and they have come out well. Just a quick question on this one – why do we add yogurt to this dish?

    Thank you so much for your time.

  6. lin says:

    IT WAS AWESOME MAM….thanks a lot for this recipe……thks a lot….

  7. latha says:

    mam, i have noticed one thing u r not using onion in your receipes really wonderful without onion u r making delicious dishes thank u mam

  8. kawaljit says:

    wonderful dish

  9. Shilpi says:

    Just awesome. Your description and pictures are so good that even who can’t cook can make it. Keep up the good job!

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