The most demanding dish in Indian restaurants across the globe! That’s Paneer Butter Masala. Why so? It’s delicious! That’s the answer. It’s basically a tomato-based creamy gravy. Butter and cashews are the other main ingredients. Lightly sweet is its flavour-rich, comforting, and perfect for any palate. It pairs best with parathas, roti, naan, and even fried rice works like a charm.
The Origin

Its birthplace is the iconic Moti Mahal restaurant in Delhi. They are the creators of the legendary Butter Chicken, or Murgh Makhani. Vegetarian variations like Paneer Butter Masala or Paneer Makhani likely evolved later as meatless adaptations of that timeless classic. So in a way, this dish has royal roots in modern Indian cuisine.
Makhani gravy – The soul of restaurant style currys
Now, a few words about Makhani gravy. Have you heard of it? Maybe not, right? But if you’ve had butter chicken or paneer butter masala, you’ve definitely tasted it. Makhani-derived from the Hindi word “makhan,” meaning butter-is the fundamental sauce used in dishes like paneer butter, paneer tikka, butter chicken, rajma, chicken bhuna, dal makhani, and more. All of these rely on the richness of butter as a core element.

A typical makhani gravy is made with tomato purée, lots of butter, and either cashew paste or fresh cream to give it a smooth, rich body. Kasuri methi, or dried fenugreek leaves, adds aroma, while a blend of garam masala, red chilli powder, and coriander brings balance to the flavour. But here’s the twist-restaurant-style paneer butter masala often adds more spices and onions for that extra depth and kick, making it slightly different from the classic makhani base.
Paneer Butter Masala
Ingredients
Instructions
-
In a pan heat some butter and add ginger garlic paste and saute well
-
Add cinnamon, cardamom, black pepper, bay leaf and saute for 2 minute and add onions, cashew nuts
-
When the mixure is ready add tomato and mix well
-
cook till tomatos cooked well and it start to leave oil on edges
-
Now let the mixure cool enough. collect spices from mix and tie them into a thin cloth and keep aside
-
grind rest of mix in to a thick paste
-
In same pan add rest of butter add masala paste, add garam masala, chilly powder, turmeric powder, sauce and enough water and let it boil
-
add the masala cloth in the mx and let it boil few more minutes till it reach right consistency
-
Add paneer and mix it with the masala
-
Garnish it with roasted Kasuri Methi
-
best with Puri, Chapathi, Roti, Paratta or Fried rice
-
Note: it is advised to cook panner before use, if its not cooked