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half of the pot with paneer butter in a pot.
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How to Make Homemade Butter Paneer (Step-by-Step)

Learn How to Make Homemade Butter Paneer (Step-by-Step)- teaches softening and pan-frying paneer mix with tomato-based butter paneer gravy.
Prep Time5 minutes
Cook Time25 minutes
Total Time30 minutes
Course: Main Course
Cuisine: Indian, Pakistani
Keyword: butter paneer, paneer butter masala
Servings: 4 people
Calories: 1055kcal
Author: Sarah Mirza

Ingredients

Butter Masala

Whole spices

  • 1 cinnamon stick
  • 4 green cardamoms
  • 2 star anise
  • 2 black cardamoms
  • 6 cloves
  • 10 black peppercorns
  • 1 tbsp cumin seeds
  • 1 bay leaf
  • 2 tbsp coriander seeds
  • 4 dry whole byadgi or dried long red pepper

Powdered spices

Soften the Paneer

  • 1 tsp salt
  • 2 cups water
  • 1 lbs paneer cut in cubes
  • cup olive oil or any neutral oil

Gravy

  • ¼ cup olive oil or any neutral oil
  • 2 tbsp butter
  • 6 oz tomato paste
  • 3 tbsp homemade butter masala
  • ½ tsp red chili powder
  • 1 tsp kosher salt
  • 1 tsp honey
  • 2 cups heavy whipping cream

Garnish

  • 1 tsp kasauri methi dried fenugreek leaves

Instructions

Let's Make Homemade Butter Masala!

  • In a fry pan, add cinnamon, green cardamom, star anise, black cardamoms, cloves, black peppercorn, cumin seeds, bay leaf, coriander seeds, and chili whole byadgi.
  • Lightly dry roast the spices in a fry pan on medium heat. Grind all until all the whole spices until they are powder form in a spice grinder.
  • Now add salt, red chili powder, tumeric powder, javitri powder, nutmeg powder, and garam masala powder. Mix everything all together.

Soften the Paneer and Fry it!

  • Cut the Paneer in cubes.
  • In a bowl, add cubes of Paneer with 1 tsp salt and 2 cups of warm water.
  • Let it soak.
  • drain the water and pat dry the paper towel until the paneer is completely dry.
  • In a fry pan, add ⅛ cup olive oil, on medium heat, let the oil heat up.
  • Add in the paneer and fry the paneer.
  • Once Paneer is done frying, turn off the stove, and set aside.

Gravy

  • In a saucepan or medium-size pot, add ¼ cup oil, and let it get hot.
  • Now add 2 tbsp butter and let it melt.
  • Add ginger garlic paste and mix it.
  • Now add tomato paste and mix well.
  • Add homemade butter masala that you made earlier.
  • Now add heavy whipping cream and mix well.
  • Add 1 tsp salt and ½ tsp red chili powder and mix well.
  • Now cover the lid and let it cook on medium low for 10-15 minutes or until the oil separates.
  • Uncover the pot.
  • Next add honey and mix.
  • Now add the fried paneer in and mix everything gently.
  • Garnish with dried fenugreek leaves.
  • Serve it immediately and serve it with a hot Naan or basmati rice.

Video

Nutrition

Serving: 1pot/saucepan | Calories: 1055kcal | Carbohydrates: 21g | Protein: 22g | Fat: 101g | Saturated Fat: 51g | Polyunsaturated Fat: 5g | Monounsaturated Fat: 29g | Trans Fat: 0.2g | Cholesterol: 224mg | Sodium: 2210mg | Potassium: 690mg | Fiber: 5g | Sugar: 10g | Vitamin A: 2899IU | Vitamin C: 15mg | Calcium: 707mg | Iron: 4mg