Guess what is the most ordered North Indian side dish in any restaurant – obviously it has got to be the ever popular Paneer Butter Masala, made with cottage cheese. Paneer Makhani is yet another deliciously rich and creamy paneer gravy recipe that is similar to paneer butter masala with subtle differences!

Paneer Makhani is quite common to be seen in many restaurant menus and I have tried to achieve the same texture/taste using simple, easily available ingredients at home. Although this is called Paneer Makhani – literally meaning Paneer Butter Masala I did the blasphemy of not using any butter 😀 The husband doesn’t like the flavor or taste of butter and considering health reasons, I used oil. You can use butter in the place of oil for a richer version.

What I love the most about homemade Paneer Makhani is that we get a bright orangish red color without adding any artificial colors! The trick is to use ripe, red tomatoes and Kashmiri chilli powder which doesn’t add too much spiciness but gives a great color. This paneer gravy is not too spicy but a little sweet, little tangy and a lot creamy! I serve this usually with Garlic Naan or Rumali Roti and it is a winning combo every single time 🙂

Learn how to make Paneer Makhani with this easy video recipe. Also subscribe to my YouTube channel, like and share feedback!

How to make Paneer Makhani Recipe

📖 Recipe

Detailed step by step picture tutorial of making Paneer Makhani

  1. Chop onions and tomatoes into cubes. Add water and cook them for 4-5 mins until they are cooked and there is no raw smell. Let them cool down completely. Make a smooth puree out of it. Set aside.
  2. Powder the cashews into a finely in a mixer/blender and add ½ cup of water, make a smooth paste out of it – this is the cashew cream/milk. Set aside.
  3. Chop Paneer into cubes. If taken out of fridge, immerse them in hot water for 5-6 mins. Set aside.
  4. In a pan, heat butter/oil. Add dried bay leaf and ginger garlic paste. Sauté until the raw smell is gone. Add the pureed onion tomatoes. Sauté until the butter/oil starts to leave from edges.
  5. Add all the masala powders – red chilli powder, Kashmiri chilli powder, turmeric powder, sugar and salt. Mix well and cook for 3-4 mins on low flame until they are cooked. Add some water and let the gravy boil on low heat.
  6. Add the prepared cashew cream/milk and mix well. Soon the gravy begins to thicken – add ½ cup of water as needed and boil the gravy for a couple of mins.
  7. Crush kasoor Methi/Dried fenugreek leaves between your palms and add it to the gravy. Add garam masala powder and mix well.
  8. Add cubed paneer and mix well. On low heat boil the gravy for another 1-2 mins. Remove from heat.
  9. Serve hot with rotis, kulcha, paratha or any Indian bread 🙂

Recipe Notes

Check out this homemade Paneer/Cottage Cheese recipe. If the paneer is straight out of the fridge, immerse it in hot water for 5-6 mins so that it is soft again. Dried Fenugreek Leaves or Kasoor Methi is very important for this dish. There is a slight bitterness in these leaves but they add to the taste of this gravy making it unique. Always crush the Kasoor Methi/Dried Fenugreek Leaves before adding to the gravy to make them fragrant. Adjust spices as per preference.

I would be delighted to know if you have tried this recipe, don’t forget to share your feedback and comments below. If you have any questions, you can e-mail me! I am also available on Facebook, Pinterest, Instagram and Twitter 🙂