Tofu Makhani, also known as Butter Tofu, is a delicious plant-based alternative to the popular Paneer Makhani.

This vegan tofu makhani recipe is a plant-based take on one of the most popular Indian dishes found in Indian restaurants.
It delivers all the flavours of traditional butter paneer but is completely dairy-free and perfect for a vegan diet.
I adapt my homemade makhani sauce for this recipe. Traditionally, makhani sauce is a rich and creamy butter masala gravy. However, this vegan version replaces dairy cream with cashews and coconut cream to achieve the same luscious texture.
Other Indian tofu recipes you'll love are my Tofu Bhurji, Chilli Tofu and Tofu Manchurian.
Ingredients notes
Be sure to check out the full recipe in the recipe card below
- Extra firm tofu - pressed to remove excess water, then cut into tofu cubes
- Onion, garlic, green chillies, ginger - crushed
- Tomato purée or fresh tomatoes
- Whole spices (cinnamon stick, cardamom, clove, black pepper, cumin seeds). Whole spices are best but you can simply use garam masala when adding the other spice powders.
- Spice powders: ground turmeric, kashmiri chili powder, ground cumin coriander powder
- Fenugreek leaves - aka kasoori methi to give restaurant flavours to the dish
- Olive oil - or vegan butter
- Lemon juice
- Sugar
- Coconut milk or coconut cream or cashew cream


Hayley's Tips & Tricks
- Use a tofu press or place heavy objects over tofu wrapped in paper towels to remove excess water.
- Marinating the tofu in spices adds extra flavour but can be skipped if you're in a hurry.
- Adjust spice levels to suit your taste.
- Prepare the sauce in advance and freeze in batches for quick meal prep.
Serving Suggestions
- Serve with vegan naan for a complete meal. If not strictly dairy-free, try this sweet peshwari naan or garlic coriander naan.
- Pair with basmati rice or jeera rice for a restaurant worthy meal.
- Add a side of kachumber or Indian onion salad.
- Garnish with fresh cilantro and plant-based yogurt for added freshness.
Storage & Reheating
- Refrigerate in an airtight container for up to 4 days.
- Freeze for up to a month. Thaw overnight in the fridge before reheating.
- Reheat on low heat in a pan, adding a tablespoon water if needed to adjust consistency.

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📖 Recipe

Tofu Makhani (Tofu Butter Masala)
Equipment
- pan
- Blender
- Spatula
Ingredients
Tofu
- 1 pack firm tofu approx 400 grams
- 2 tablespoon oil
- ½ teaspoon red chilli powder
- ½ teaspoon turmeric powder
- ½ tablespoon lemon juice
- salt
Vegan Makhani Sauce
- 1 tablespoon oil
- 1 teaspoon cumin seeds
- 1 medium onion red or white
- 1 tablespoon green chillies
- 1 tablespoon ginger chopped
- 1 tablespoon garlic chopped
- 2 small tomatoes fresh chopped
- ¼ cup tomato puree pasatta
- 2 tablespoon cashew nuts raw - optional
- 1 tablespoon salt
- 1 teaspoon whole spices cardamom, cloves, cinnamon bark, black peppercorn
- 1 tablespoon dry fenugreek leaves kasoori methi
- 2 tablespoon plant based butter
- 1 teapoon kashmiri red chilli powder
- ½ teaspoon turmeric powder
- 1 tablespoon coriander powder and cumin powder
- 3 tablespoon cashew cream or coconut cream
- 1 tablespoon sugar maple syrup
- ½ teaspoon lemon juice
Garnish
- 3 tablespoon coriander chopped
- 1 tablespoon cream
Instructions
Prepare the Tofu
- Press the tofu.
- Cut extra firm tofu into cubes, press out excess water, and marinate with oil, red chilli powder,lemon juice, turmeric and a pinch of salt.
Cook the Marinated Tofu
- Heat oil in a large pan over medium heat. Sauté tofu cubes until golden brown. Remove and set aside.
Make Vegan Makhani Sauce
- Heat oil in a pan over medium-low heat. Add cumin seeds, bay leaves, cardamom, cloves, black peppercorns, and a cinnamon stick, allowing them to sizzle until fragrant.
- Stir in onions, ginger-garlic paste, and green chilies, followed by fresh tomatoes, tomato puree, and optional cashew nuts.
- Mix well and cook the onions and tomatoes for a few minutes. Add kasoori methi and salt.
- Pour in ½ cup of water, bring to a boil, then cover and let it simmer for 20 minutes. Turn off the heat and let the mixture cool to room temperature.
- Blend using an immersion blender or a jug blender until smooth.
- Return the puree to the pan over low heat. Sprinkle in coriander powder, cumin powder, red chili powder, and sugar.
- Stir and let the sauce simmer gently for 4-5 minutes.
- Finally, mix in vegan butter and cashew cream or coconut milk.
Finish the dish
- Add seared tofu, stir well and cook for a few more minutes.
- Turn off the heat, add crushed fenugreek leaves, and lemon juice.
- Garnish it with fresh chopped coriander and drizzle cashew cream.
Video
Nutrition
PLEASE NOTE: Nutritional values are estimated by a computer and may vary based on ingredients and portion sizes. For personalised dietary advice, please consult a qualified healthcare professional.
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Hayley Dhanecha says
This tofu makhani (tofu butter masala) is one of those dishes that turns a simple weeknight dinner into something so good and incredibly tasty. The creamy, buttery tomato gravy coats the tofu beautifully, making every bite rich, comforting and full of flavour. I love serving it with naan or jeera rice—it always feels like a proper indulgent restaurant-style meal at home.