Paneer Butter Masala Recipe/Dhaba Style Spicy Paneer Butter Masala/Paneer Makhani/Butter Paneer recipe with step by step process, important tips – Paneer Butter Masala is among one of the most liked paneer recipes. Today I am going to show you a very easy recipe of paneer butter masala.

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(Serves 5-6 person)

  • Paneer – 400 gms
  • Turmeric powder – ½ tsp
  • Kashmiri red chilli powder – ½ tsp (optional)
  • Butter – 3-4 tbsp
  • Cream – 3-4 tbsp
  • Kasuri methi – 1.5 tsp
  • Salt as per taste

For the paste:

  • Butter – 1 tbsp
  • Black pepper corns (kali mirch) – 5-6
  • Cloves (long) – 5-6
  • Cinnamon (dal chini) – 1 inch stick
  • Bay leave (tej patta) – 1
  • Coriander seeds (sabut dhania) – 1 tsp
  • Cumin seeds (zeera) – ½ tsp
  • Onion – 1 large
  • Garlic – 6-7
  • Ginger – 1 inch
  • Whole red chilies – 6-7
  • Tomatoes – 2-3 medium size
  • Cashew (kaju) – 8-10


  1. Take a pan and add 1 tbsp butter in it. When the butter starts to melt add pepper, cloves, cinnamon stick, bay leaf, coriander seeds and cumin seeds. Roast at low heat until it starts to fragrant.
  2. Add roughly chopped onions, garlic cloves, ginger roughly chopped and broken red chilies. Mix well and cook until onions turn pink.
  3. Add roughly chopped tomatoes and cashews in it, mix and cover the pan. Cook at low heat until tomatoes turn soft.
  4. Turn off the heat and let the spices come to room temperature.
  5. Remove bay leaf and skin from tomatoes.
  6. Grind everything into a smooth paste. Keep aside.
  7. Take a pan and add 4 tbsp butter in it.
  8. Add the prepared paste and cook for a minute. Add turmeric powder, red chili powder (if you want the gravy less spicy you can leave it) and salt to taste. Mix well and cook until oil separates.
  9. Add 1 cup water in the gravy and let it come to a boil.
  10. Finally add paneer cubes, cream and crushed kasuri methi in the gravy. Mix and let the gravy cook for few minutes.
  11. Do not cook paneer for very long time as it will harden the paneer.
  12. Turn off the heat and garnish the paneer butter masala with chopped coriander.
  13. Serve buttery hot paneer butter masala with butter naan, paranthas or chapatti.

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