For Paneer Makhani, soft paneer pieces are simmered in an exquisite, rich and silky sauce made with butter, onion, tomato, cashews and aromatic spices. Perfect as part of your Diwali dinner menu.

a bowl of paneer makhani placed on a metal serving tray.

Paneer Makhani, or makhanwala, is also known as Butter Paneer or Paneer Butter Masala in English. It's an Indian vegetarian curry recipe in which creamy paneer is simmered in a sweet buttery gravy.

The gravy is a silky smooth blend of onion, garlic, tomatoes, cashews, and of course ... butter. What helps it along is a bit of sugar which draws out the incredible flavours. I like to use a small amount of whole spices to add depth and richness.

The dish is finished off with a drizzle of cream. It's definitely a recipe for special occasions!

For a version without paneer, you can also try my Aloo Butter Masala or Tofu Makhani.

Other creamy paneer dishes you may like are Shahi Paneer and Paneer Kali Mirch.

Ingredients notes

Full ingredients with measurements are available in the recipe card below at the end of this post

Paneer is a fresh Indian cheese, commonly used in vegetarian dishes. It can be found in most Indian grocery stores or larger supermarkets in the cheese section.

Chopped Tomatoes or Passata serve as the base for the sauce, providing a rich, tangy flavour.

Whole spices like cinnamon, green cardamom, and cloves give depth and warmth to the dish—these can be found in the spice aisle, particularly in Indian or specialty stores.

Onions, garlic, ginger and green chillies are staples in most kitchens, adding a savory and aromatic base.

Cumin Seeds and dried fenugreek leaves (also known as Kasuri methi) are traditional Indian spices found in most Asian grocery stores.

The spice powders—red chilli powder, Kashmiri chilli powder, turmeric, ground cumin, coriander, and garam masala—are essential for Indian cooking and can be easily found in the spice aisle of Indian or international supermarkets.

Butter adds richness, but can be swapped for ghee (clarified butter), while sugar or honey balances the spices.

Cream I have used single cream.

Fresh coriander leaves are used for garnish.

paneer butter masala served with naan on the plate.

How to make Paneer Makhanwala

Start by cutting the paneer into your desired shape and set it aside. In a pan, cook tomatoes, onion, garlic, ginger, green chillies, whole spices, salt, oil, and water. Simmer until softened, then blend and strain into a smooth sauce.

In another pan, heat oil, add cumin seeds, and once they splutter, mix in the tomato sauce along with the spices and dried fenugreek leaves. Adjust the consistency with water and simmer for a few minutes. Season with salt, sugar, and stir in the butter.

Add the paneer to the sauce and simmer for 5 minutes to absorb the flavors. Garnish and serve.

Serving suggestion

Paneer Butter Masala is best served with pillowy, chewy naans. I love these Garlic Coriander Naans and Peshwari Naans.

You can also go with whole wheat paratha or whole wheat roti for an alternative Indian flatbread option.

For rice dishes, go for mild flavours such as jeera rice, plain boiled rice, basmati rice, or matar pulao.

Storage

Store leftover paneer makhani in an airtight container and keep in the fridge for up to 3 days. To reheat, you may need to add a splash of milk if it thickens too much.

Paneer makhni also freezes really well for 1 month. Allow to thaw at room temperature or in the fridge overnight.

paneer makhanwala garnished with cream and coriander leaves.

Other Paneer Curries Recipes

Paneer Tikka Masala

Amritsari Paneer Bhurji

Palak Paneer

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