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Restaurant Style Paneer Butter Masala served with a side of parathas and jeera rice.

Restaurant Style Paneer Butter Masala

Here's an easy recipe for the perfect restaurant style paneer butter masala for all you paneer (cottage cheese) lovers! I love serving this with parathas and jeera rice. It's always a hit with family and guests!
4.85 from 84 votes
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Course: Main Course
Cuisine: Indian
Keyword: Paneer Butter Masala, Paneer Makhani, Restaurant Style
Prep Time: 10 minutes
Cook Time: 50 minutes
Total Time: 1 hour
Servings: 6 Portions
Calories: 246kcal
Author: Richa


  • 3 tablespoons Butter
  • 250 grams Paneer cubes or Cottage Cheese
  • 3 Kashmiri Red Chilies
  • 1 teaspoon Ginger Paste
  • 1 teaspoon Garlic Paste
  • 1 Bay leaves
  • 1 inch Cinnamon Stick
  • 3 Cloves
  • 2 Cardamoms
  • 1/2 teaspoon Peppercorns
  • 2 tablespoons Cashew Nuts Chopped
  • 1 teaspoon White Poppy Seeds Khus Khus (Optional)
  • 1 Onion roughly chopped
  • 6 Tomatoes roughly chopped
  • 1/2 teaspoon Chili powder
  • 1/2 teaspoon Garam masala Powder
  • 1/2 teaspoon Turmeric Powder
  • 1 1/2 tablespoons Ketchup
  • 1 tablespoons Kasuri Methi Dry
  • 2 tablespoons Fresh Cream
  • Salt to taste


  • In a large pan or kadhai, heat a tablespoon of butter and a tablespoon of oil.
  • Add red chillies, ginger, garlic paste and all the whole spices (bay leaves, cinnamon, cloves, cardamom and peppercorns). Alternatively, you can also wrap the spices in a muslin cloth and add them to the pan (take this out after the tomatoes are cooked down). Saute for a minute or two and add cashew nuts, poppy seeds (if using) and onions. Once the onions turn translucent, add the tomatoes. Mix well.
  • Cover and cook till the tomatoes start breaking down and the mixture starts leaving oil at the edges. Switch off the flame and set aside to cool.
  • Once cool enough to handle, fish out as many whole spices as possible, and blend the mixture to a smooth paste in a food processor or blender.
  • In the same pan or kadhai, heat the remaining butter and add the blended paste prepared in step #4. Add garam masala powder, chili powder, turmeric, ketchup, salt along with 1/2 cup water. Bring this to a boil.
  • Once the curry comes to a boil, simmer and cook for 30 minutes, till the oil separates slightly. Cut the paneer into bite sized pieces, add it to the gravy and mix gently.
  • In another pan, dry roast the kasuri methi and grind it to a fine powder. Mix kasuri methi and fresh cream in the curry and switch off the flame. Serve hot.


  1. Paneer: If you'd like to try and make paneer at home, you can check out this recipe
  2. Tomatoes: Roma tomatoes work best for paneer butter masala because they are not as sour as the local varieties


Calories: 246kcal | Carbohydrates: 13g | Protein: 10g | Fat: 18g | Saturated Fat: 8g | Cholesterol: 34mg | Sodium: 58mg | Potassium: 360mg | Fiber: 3g | Sugar: 5g | Vitamin A: 1167IU | Vitamin C: 20mg | Calcium: 239mg | Iron: 1mg