Dhaba Style Paneer Butter Masala (Homemade & Authentic)
This Paneer Butter Masala is one of those recipes I often make when we crave restaurant-style food at home. The creamy gravy, soft paneer cubes, and the aroma of butter and spices make the whole kitchen smell amazing.
The best part? It’s simple, made with everyday ingredients, and tastes even better because it’s homemade with love.
Ingredients
250g paneer (cubed)
2 tablespoons butter
1 tablespoon oil
2 medium onions, finely chopped
3 tomatoes, pureed
1 tablespoon ginger-garlic paste
10–12 cashews, soaked in warm water
1 teaspoon red chili powder (adjust to taste)
½ teaspoon turmeric powder
1 teaspoon coriander powder
Salt to taste
1 teaspoon kasuri methi (dried fenugreek leaves)
½ teaspoon garam masala
3 tablespoons fresh cream
1 cup water
Fresh coriander for garnish
Method
Heat butter and oil in a deep pan or kadhai.
Add the chopped onions and cook slowly until they turn light golden. This step builds the base flavor, so don’t rush it.
Add ginger-garlic paste and sauté for about a minute until the raw smell disappears.
Pour in the tomato puree and cook on medium heat until the oil starts separating from the sides.
Grind the soaked cashews with a little water and add this paste to the gravy. This makes the curry rich and creamy.
Add turmeric, red chili powder, coriander powder, and salt. Cook for 2–3 minutes.
Add water and let the gravy simmer for about 5 minutes.
Gently add paneer cubes and cook on low heat for 3–4 minutes. Avoid overcooking to keep the paneer soft.
Stir in fresh cream, garam masala, and crushed kasuri methi.
Mix gently and cook for another minute.
Garnish with fresh coriander and a drizzle of cream.
Your homemade dhaba-style paneer butter masala is ready to serve!
Serve
We love serving this with:
Butter naan
Tandoori roti
Jeera rice
Fresh onion salad and lemon wedges
Tips
Soak paneer in warm water for 10 minutes if it feels firm.
A small pinch of sugar balances the acidity of tomatoes.
Always crush kasuri methi between your palms before adding for better aroma.
FAQ
1. Can I make this without cream?
Yes, you can use milk, fresh malai, or even coconut milk as a substitute.
2. Why does my paneer turn hard?
Overcooking makes paneer rubbery. Add it at the end and cook only for a few minutes.
3. Can I skip cashews?
Yes, but cashews give the gravy its rich texture. You can replace them with melon seeds or add extra cream.
4. Is this recipe spicy?
The spice level is mild to medium. Adjust the chili powder according to your taste.
5. Can I make it vegan?
Yes. Replace paneer with tofu, butter with oil, and cream with coconut cream.
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