This creamy Restaurant Style Paneer Butter Masala is rich, creamy and has pieces of paneer tossed in a tomato and cashew based curry. Goes so well with naan or rice!
Heat 1 teaspoon oil in a pan on medium heat. Once the oil is hot, add 1 bay leaf, ½-inch cinnamon stick, 3-4 cloves and sauté for a few seconds.
Then add 6-7 garlic cloves (roughly chopped), 1 & ½ inch ginger (roughly chopped) and 1 large white onion (roughly chopped) and sauté for 2 to 3 minutes until the onion is translucent.
Add 3-4 medium tomatoes (roughly chopped), and 10-15 raw cashews and mix. Then add 1 cup water. Cover the pan with a lid and cook on medium heat for 15 minutes.
After 15 minutes, remove the pan from heat. Remove the bay leaf, cinnamon stick and cloves from the pot. Then let the mixture cool down a bit and then transfer to a blender. It’s important to let it cool down a bit else it will all blow up from the mixer. Grind the masala to a smooth paste and set aside.
To the same pan now add 2 tablespoons butter along with remaining 1 teaspoon oil on medium heat.
Once the butter melts, add ½ teaspoon red chili powder and ½ teaspoon Kashmiri red chili powder and fry for a few seconds. This will give the curry a nice orange-red color.
Then add the ground paste back into the pan along with ½ teaspoon garam masala (start with ½ teaspoon and add the remaining ¼ teaspoon at the end only if you feel like the curry needs that extra bit of garam masala after taste testing), ¼ teaspoon cardamom powder, 1 teaspoon sugar, ¾ teaspoon salt and ½-1 tablespoon tomato paste (if using). Mix well and cook for 1-2 minutes.
Then add 3-4 tablespoons heavy cream and mix.
Add in 250 grams of paneer (cut into cubes) and cook for 2 to 3 minutes on medium heat. Finally add 2 teaspoons kasuri methi (crushed).
Garnish paneer butter masala with cilantro if you like and serve hot with naan or rice!
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Notes
If you want to make this vegan, use vegan butter in place of regular butter, coconut milk or cream in place of heavy cream and tofu in place of paneer.
You can add water or milk to thin down the curry and adjust as per the consistency you prefer.
Do not overcook the paneer, it makes the paneer hard and chewy.