Vegetarian · Indian cuisine

Paneer Butter Masala (Paneer Makhani)

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16 ingredients Cuisine: Indian Page updated October 2026

Paneer butter masala, also called paneer makhani, is a North Indian dish of fried paneer simmered in a creamy, spiced sauce. Here the sauce is built on plain yoghurt rather than cream, tempered with hing, cardamom, turmeric and cumin, so it tastes tangy and rounded. The paneer is fried first, which keeps the cubes firm through the long, gentle simmer. It makes a quick vegetarian dinner for two, ready in 25 minutes.

Instructions

Fry the paneer in ghee or oil until it takes on some colour, then lift it out into a bowl and set it aside.

In the same pan, cook the diced onion in oil with the garlic and ginger pastes until it turns golden brown.

Stir in the diced capsicum and tomatoes and take the pan off the heat while you make the spiced base.

In a separate pan, combine the teaspoon of ghee with the hing, cardamom, turmeric, garam masala, chilli powder, cumin and lemon juice. Fry the mixture for 2 minutes, then stir in the yoghurt.

Cook the yoghurt mixture on medium heat for five minutes, stirring so it stays smooth.

Add the onion, capsicum and tomato mixture and the fried paneer to the sauce. Cook on low heat for 15 minutes, stirring now and then, until the flavours have blended.

Serve hot with rotis or naan and rice. For a more gravy-like sauce, use less yoghurt and add full-fat milk with a spoonful of cornstarch.

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