Paneer Butter Masala – Jiwan Malai Paneer

Creamy Restaurant style Paneer Butter Masala is easy to make at home. This creamy curry is made with onion, tomatoes, cashews, cream and butter (of course!). It has a mild sweet taste and pairs beautifully with garlic naan or jeera rice.

You can never have enough of paneer. Can you?

There are just so many ways to cook with it. You cook it with green peas you get matar paneer, you cook with spinach you get palak paneer.

And you cook it with butter and cream, you get Paneer Butter Masala.

Each of them is delicious but my favorite is this paneer butter masala. You can say I have a thing for creamy sauces and that’s why this version has my heart.

Sometimes, it is also known as Paneer Makhani. It’s one or the same thing.

Of course, few ingredients might be different here and there but both do have a creamy sauce and so I like to club them together under the same recipe.


1- Heat 1 teaspoon of oil in a pan on medium heat. Once the oil is hot, add the bay leaf, cinnamon stick, cloves and saute for few seconds.

Then add the the onion, garlic, ginger and saute for 2 to 3 minutes until the onion is translucent.

2- Add the tomatoes and cashews and mix.

3- Then add 1 cup of water.

4- Cover the pan and cook on medium heat for 15 minutes.


5- After 15 minutes, remove the pan from heat. Remove the bay leaf, cinnamon stick and cloves.

6- Let the mixture cool down a bit and then transfer to a blender. It’s important to let it cool down a bit else it will all blow up from the mixer.

7- Grind the masala to a smooth paste and set aside.

8- To the same pan now add 2 tablespoons butter along with remaining 1 teaspoon oil on medium heat.

9- Once the butter melts, add the red chili powder and the Kashmiri red chili powder and fry for few seconds. This will give the curry a nice red color.

10- Then add the ground paste back into the pan along with the garam masala (start with 1/2 teaspoon and add the remaining 1/4 teaspoon at the end only if you feel like the curry needs that extra bit of garam masala), cardamom powder, sugar, salt and tomato paste (if using).

Mix well and cook for 1-2 minutes.

11- Then add the cream and mix.

12- Add in the paneer and cook for 2 to 3 minutes on medium heat. Finally add crushed kasuri methi.

Garnish paneer butter masala with cilantro and serve hot with naan or rice!

Recipe Credits – Cook with Manali


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