Creamy Butter Paneer Recipe (Paneer Makhani)

Butter Paneer captures the rich, creamy flavor of classic butter chicken in a vegetarian version using paneer, a fresh Indian cheese that stays firm when heated.

My family enjoys butter chicken, but my children consistently choose paneer over meat. They love its soft, slightly springy texture and the way it holds up in saucy dishes. That preference prompted me to adapt my favorite butter-style sauce to a paneer-based entree, resulting in a comforting, crowd-pleasing Butter Paneer.

How to make Butter Paneer

The process begins by marinating the paneer briefly so the cubes pick up flavor while you build the sauce. The marinade is simple and quick: plain yogurt (regular or Greek), a little neutral oil, minced garlic, garam masala, turmeric, salt, and a touch of cayenne. Toss the paneer cubes in the mixture until evenly coated, then set aside in the fridge while you prepare the sauce.

For a rich, silky sauce, start by sautéing finely chopped onion with tomato paste and salt in oil until the onion is soft and the paste darkens. Add minced garlic and grated ginger, cooking just until fragrant. Toasting whole-spice flavors in the pan next—garam masala, paprika, and a pinch of cinnamon—releases their aroma and deepens the sauce.

Stir in tomato puree (or diced/crushed tomatoes) and simmer briefly. Finish the base by stirring in cream and a little sugar to balance acidity, then remove the pot from the heat and puree the mixture until smooth. An immersion blender works best for hot liquids; a regular blender will do if you let the sauce cool slightly and blend in batches.

Return the sauce to the stove over medium heat, swirl in butter until it melts into the sauce, then add the marinated paneer and any remaining marinade. Gently warm the paneer until heated through—about 3–5 minutes—being careful not to break up the cubes. Serve Butter Paneer with steamed rice, quinoa, naan, or paratha for a satisfying meal.

Make-Ahead Tips

To make weeknight dinners easier, marinate the paneer up to 12 hours in advance and refrigerate it in an airtight container. You can also prepare the sauce through the blending step and chill it for up to two days. When ready to serve, warm the sauce over medium heat, add butter and the marinated paneer, and finish cooking until the paneer is warmed through.

Ingredients for Butter Paneer

• Canola oil or another neutral oil — for marinating and for the sauce.
• Plain regular or Greek yogurt — used in the quick marinade.
• Garlic — minced, used both in the marinade and in the sauce.
• Garam masala — a warm Indian spice blend used in the marinade and sauce.
• Ground turmeric — adds color and mild flavor.
• Kosher salt — or your preferred cooking salt; season to taste.
• Cayenne pepper — 1/4 teaspoon gives a mild heat; reduce or omit for a gentler version.
• Paneer — about 1 lb, cut into 1/2″–3/4″ cubes. Paneer is an acid-set fresh cheese that doesn’t melt when heated.
• Onion — finely minced; frozen diced onion can speed things up.
• Tomato paste — intensifies tomato flavor; freeze small amounts in an ice cube tray for later use.
• Grated ginger — fresh or grated from frozen ginger for convenience.
• Paprika — use regular sweet or hot paprika; avoid smoked paprika here.
• Ground cinnamon — a small pinch for warmth.
• Tomato puree — or an equal amount of diced or crushed tomatoes.
• Whipping cream — yields the creamiest sauce; you can substitute half-and-half for a lighter result.
• Unsalted butter — adds richness and shine at the end.
• Granulated sugar — balances acidity; about 1 tablespoon.

Equipment and Timing

• Large saucepan or medium Dutch oven
• Immersion blender or countertop blender (blend carefully when hot)
• Microplane or fine grater for ginger (optional)

Servings: 4. Prep time: ~20 minutes. Cook time: ~25 minutes. Total time: ~45 minutes.

Instructions

1. Marinate the paneer: In a medium bowl, whisk together 1/4 cup plain yogurt, 1 tablespoon oil, 2 cloves minced garlic, 1 teaspoon garam masala, 1/2 teaspoon turmeric, 1/2 teaspoon kosher salt, and 1/4 teaspoon cayenne. Add 1 lb cubed paneer and toss gently to coat. Chill while you make the sauce, or up to 12 hours.
2. Sauté aromatics: Heat 2 tablespoons oil in a large saucepan over medium heat. Add 1 medium minced onion, 1 tablespoon tomato paste, and 1 teaspoon salt. Cook until the onion is soft and the paste darkens, about 5–8 minutes.
3. Add garlic, ginger, and spices: Stir in 6 cloves minced garlic and 1 tablespoon grated ginger; cook 1 minute. Add 1 tablespoon garam masala, 2 teaspoons paprika, and 1/4 teaspoon ground cinnamon; cook another minute to bloom the spices.
4. Simmer the tomato base: Stir in 1 cup tomato puree and simmer 2–3 minutes. Add 1/2 cup whipping cream and 1 tablespoon granulated sugar, then remove from heat.
5. Blend until smooth: Puree the sauce with an immersion blender until silky. If using a countertop blender, cool slightly and blend in batches to avoid steam build-up.
6. Finish with butter and paneer: Return the sauce to medium heat, stir in 2 tablespoons unsalted butter until melted, then add the marinated paneer and any remaining marinade. Warm gently until the paneer is heated through, 3–5 minutes.
7. Serve: Spoon Butter Paneer over rice or serve with naan or paratha. Garnish with a splash of cream or a sprinkle of garam masala if desired.

Nutrition notes

The approximate nutrition for one serving (1/4 of the recipe) is shown below. Swapping whipping cream for half-and-half or a lower-fat option will reduce saturated fat and calories but will make the sauce slightly less creamy.