Paneer Butter Masala | Paneer Makhani |Paneer in Creamy Butter sauce

Call it Paneer Butter Masala or Paneer Makhani it never fails you. The soft paneer soaked in the creamy buttery gravy makes one of the best sides for Naan (flat bread) , Jeera rice or pulav.  Butter masala is universal favorite be it veggie version or non-veg.


This particular recipe is a perfect blend of  spicy, sweet and tart flavors. The gravy was soo creamy that I could not resist but wipe it clean, Even the kids liked it a lot even though it had a bit of spicy aftertaste.. So it was a perfect dinner menu- Paneer Butter Masala paired with hot phulkas/rotis.


It can be confusing to make out the difference between Panner Butter Masala/Paneer Makhani,  Shaahi Panner and Khadai paneer gravy as all three has similar ingredients and somewhat similar process and with so many recipes of each with unique variations. From my research I have learnt few nuances of each of the dish that helped me understand the distinct tastes and flavors of these dishes better. I will share it in a separate post soon.


Paneer Butter Masala | Paneer Makhani | Paneer in Creamy Butter sauce

  • Servings: 4
  • Difficulty: medium
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Fresh Paneer  – about One cup cubed
Onion  – 1 small finely chopped
Tomato – 1/2 finley
Cumin/Jeera/Jeeragam – 1 -2 tsp
Bay leaf/Tej patta/ Birinji elai  – 1
Butter – 3 Tbs ( You can replace it with oil and call it Paneer masala 😉 )
Turmeric – 1/2 tsp
Red chili – 1 tsp (optional)
Garam masala – 1 tsp
Salt to taste
Kasoori methi – 2 pinches
Cream or whole milk to garnish

For gravy:
Tomato – 2 medium cubed
Onion – 1 medium cubed
Ginger – 1 small piece
Garlic- 3 cloves
Green chilis – 2
Whole Milk – 1 to 2 cups
Peprika  or Kashmiri chlli powder – 1/2 tbs ( or any other red pepper that will add color)
Cloves – 4- 5
Cardamom – 2-3
Mace – 1/2


  1. In a pan add about 1 tbs of butter. Once butter is hot add the tomato, onion, ginger, garlic and the whole spices and saute it for a minute or two
  2. Add the milk and green chilis to the veggies and let it all cook in the milk.
  3. Cooking in the milk gives a good texture and consistency.
  4. When the mix is cooked set it aside to cool. When cool grind it into a smooth paste.
  5. Fish out the whole masala from this mixture and use later in the recipe.
  6. In the same pan , add in the remaining 2 Tbs butter and let it heat.
  7. Add the jeera, bayleaf and the fished out masala form the gravy mix .
  8. Now add in the finely chopped onion, turmeric and tomato the tadka and cook well.
  9. Add in the paprik or kashmiri chilli powders and let the mixture cook till almost fried in butter and a
  10. Now add in the ground paste to this and let the mixture along with salt and garam masala and cook well. Add water as needed.
  11. Once the butter separates from the gravy add in the panner pieces and let it cook for 5 mins.
  12. Once heat is turned off crush and add the kasoori methi to the mix and garnish with cream. I used whole milk as I did not have cream.IMG_5865

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