Paneer Makhani is a rich, creamy gravy made by cooking paneer in a buttery onion tomato gravy. This is one of the best and creamy restaurant style paneer makhani recipe that is a must try. This gravy is one of the best sides for roti, phulka , jeera rice, pulao etc. Luscious & aromatic with buttery goodness that's the authentic Paneer makhani just for you. Recipe included with step by step pictures and video.

This Paneer Makhani is a one pot cooking recipe and easy to make in just few minutes. Mittu loves Paneer Makhani of course it is my family favorite too. Mittu goes for additional round of rice or flatbread whenever I make Paneer Makhani so I make it often at home. Though this tastes close to Paneer makhani in restaurants the ingredients are very simple and ideal for a home style gravy.
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About Paneer Makhani
'Paneer' is Indian cottage cheese and 'Makhan' in Hindi translates to butter so Paneer Makhani is nothing but paneer cooked in butter. Paneer Makhani is a popular side dish from Punjabi cuisine that is made with paneer, onion, tomato, cream, butter, cashews and other herbs and spices. This gravy is popularly called as Paneer Makhanwala or Paneer Makhni.
This restaurant style paneer makhani is one of our family favorites so I make it at least once a month. It can be made in 40 minutes, no fancy ingredients still comes out super delicious just like in restaurants.
This recipe is a must try if you are looking for a delicious gravy to pair up with roti that too with less effort. You can pair it with either plain steamed basmati rice or jeera rice or roti, chapati etc.
Some of the dishes taste best restaurant style - Paneer Makhani is one of them. 2 things make this recipe restaurant style. One - addition of cream & ground cashews. Two - straining the tomato remains from the puree to make a silky smooth creamy gravy. Paneer makhani is a vegetarian version and a great alternate to Butter Chicken.
If you have the makhani gravy ready you can end up making N number of dishes out of it. You can add mixed vegetables or potatoes or soya or baby corn etc. I made tandoori rotis to go with it.

Paneer Makhani Video - Short video
Paneer Makhani Ingredients
- Paneer - Use fresh soft homemade paneer for best results. I have added paneer as such but you can shallow fry them and add too. Suggest to soak the paneer in hot water after frying to avoid becoming hard. If the paneer is store bought either fresh or frozen soak in hot water for 10 minutes which makes it soft.
- Onion, Tomato - makes the base for this recipe. Use fresh, ripe tomatoes as the taste of the puree determines the taste of Paneer Makhani. I have added onion to give mild sweetness to the gravy. You can skip onion if you like tangy paneer makhani.
- Butter - Use fresh butter, if you have access to homemade butter, else use store bought butter.
- Whole spices - I have used whole spices which includes bayleaf, cinnamon, cloves, cardamom.
- Cashews - adds richness and creaminess to the gravy.
- Kashmiri Red chilies - adds heat and bright orange color to the gravy.
- Garlic, ginger, Green chilies - adds flavor, taste and heat to the gravy.
- Spice powders - Basic spice powders like red chili powder, garam masala powder are used. Instead of adding color you can add kashmiri red chili powder.
- Fresh cream - Fresh cream adds a great flavor to this dish so do not skip it. If you do not have fresh cream just take the malai formed on top of hot milk, mash it well with a spoon and add it.
- Kasoori methi - added for freshness, flavor and garnish.

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How to make Paneer Makhani Step by Step
1.To a heavy bottomed pan add all the ingredients listed under 'to cook & grind' :
- 1 big onion sliced
- 4 medium sized tomatoes chopped roughly
- 2 small kashmiri chilies
- 1 small green chili slit
- ½ inch ginger
- 3 nos garlic
- 1 inch cinnamon
- 2 nos cloves
- 2 nos green cardamom
- 1 no black cardamom
- 1 small bay leaf
- 10 nos cashews
- 1 teaspoon butter
- salt to taste

2.Add ¾ cup water to it.

3.Give a quick mix.

4.Cook covered in medium flame for 7-10 minutes.

5.Once onion tomato turns soft open, pick out cinnamon, cloves, cardamom, bay leaf and discard it.

6.Cool down the cooked ingredients then transfer to mixer jar.

7.Puree it and set aside.

8.In the same pan add 1 tablespoon butter, then add 1 teaspoon red chili powder(you can replace with kashmiri red chili powder too). Mix it well.

9.Strain and add the puree in batches.

10.Mix with a spoon and strain.

11.Discard the remains.

12.Give a quick mix, the gravy starts to boil.

13.Add 1 and ½ cups paneer cubes.

14.Give a quick mix. Let it boil for 5 minutes.

15.Then add 2 tablespoon fresh cream, 1 teaspoon kasoori methi(crush & add), ½ teaspoon garam masala powder, salt to taste and ¼ teaspoon sugar. Mix gently. Let it cook for 5 more minutes until all the flavors are absorbed.Switch off.

Serve the gravy with a dollop of butter with roti. Paneer Makhani is ready!

Expert Tips
- Paneer - Use fresh soft paneer. You can keep it soaked in warm water for few minutes to retain softness. Drain water and add it to gravy.
- Straining - Grinding and straining helps in giving silky smooth gravy so do not skip this step.
- Color - Once red chili powder is added to butter quickly mix well, strain and add the gravy, this gives it the bright orange colour. Do not burn as it will make the gravy colour look dull. I did not add any colour just kashmiri red chilies while grinding and normal chilli powder while tempering which gives it a bright orange colour just like in restaurants.
- Whole spices - Pick out whole spices as it may be overpowering in the gravy. However ensuring its flavor is infused in the gravy while cooking onion, tomato.
- Fresh cream - Do not add more fresh cream than mentioned quantity.
- Kasoori methi - Dry roast, crush and add kasoori methi for more flavor.
- You can even add the puree as such without straining. It will not be silky smooth but tastes good.
- Replacement - You can replace paneer with tofu, cream with coconut milk for vegan preferences.
- Smokey flavor - You can smoke it with smoked charcoal, ghee for a smokey flavor.
Serving & Storage
Paneer Makhani is one of the best side for roti, phulka, chapati, paratha, lachha paratha & other flatbread varieties. Paneer Makhani goes well with jeera rice, pulao, curd rice and my kids use them for basmati rice as well. It tastes great!
Paneer Makhani keeps well for 6-8 hours day in room temperature. Refrigerate to extend shelf life for 2 days. Reheat with microwave or stove before consuming it.
FAQS
1.What is the difference between Paneer Butter Masala and Paneer Makhani?
Though most of the ingredients are similar to panner butter masala, the main difference between paneer butter masala and paneer makani is the method which we make they are different.This gravy is easy and quick when compared to PB masala so do try this and enjoy!
2.Is Paneer Makhani and Paneer tikka masala same?
No, both Paneer Tikka Masala and Paneer Makhani are totally different in both taste and preparation.
3.Can we add milk instead of cream?
Cream gives a nice flavor, richness and creaminess to the gravy which gives it the exact restaurant taste but you can skip it and add just milk alone but the taste will surely differ.
4.Can I skip butter?
Yes you can replace butter with oil. But butter is one of the main ingredient that makes this gravy rich. If you skip it then the taste may vary accordingly.
5.Can I skip the straining part?
Yes you can skip straining and add it as such as we do for PB masala. But the smoothness and creaminess will be missing if you don't strain.

If you have any more questions about this Paneer Makhani do mail me at sharmispassions@gmail.com. In addition, follow me on Instagram, Facebook, Pinterest, Youtube and Twitter.
Tried this Paneer Makhani? Do let me know how you liked it. Also tag us on Instagram @sharmispassions and hash tag it on #sharmispassions.
📖 Recipe Card
Paneer Makhani Recipe
Ingredients
- 1 and ½ cups paneer
- 1 tablespoon butter
- 1 teaspoon red chilli powder
- 1 to 2 tablespoon fresh cream or milk malai
- 1 teaspoon kasoori methi
- ½ teaspoon garam masala powder
- 1 tablespoon butter + extra while serving
- ¼ teaspoon sugar optional
- salt to taste
To cook & grind:
- 1 big onion (sliced)
- 4 medium sized tomatoes (chopped roughly)
- 2 small kashmiri chillies
- 1 small green chilli (slit)
- ½ inch ginger
- 3 nos garlic
- 1 inch cinnamon
- 2 nos cloves
- 2 nos green cardamom
- 1 no black cardamom
- 1 small bayleaf
- 10 nos cashews
- 1 teaspoon butter
- ¾ cup water + as needed
- salt to taste
Instructions
- To a heavy bottomed pan add all the ingredients listed under 'to cook & grind'. Add water and immerse it fully.
- Cook covered in medium flame for 7-10 mins. Open and pick out cinnamon, cloves, cardamom, bay leaf and discard it.
- Cool down then transfer to mixer jar. Puree it and set aside.
- In the same pan add 1 tablespoon butter, then add red chilli powder (you can replace with kashmiri red chilli powder too).Mix it well and strain the puree.
- Add in batches and strain completely. When the gravy is about to boil add paneer and let it boil for 5mins.
- Then add fresh cream, kasoori methi (crush & add),garam masala powder, salt and sugar. Mix gently. Let it cook for 5 more mins until all the flavours are absorbed. Switch off
- Serve Paneer Makhani with roti.
Video
Notes
- Paneer - Use fresh soft paneer. You can keep it soaked in warm water for few minutes to retain softness. Drain water and add it to gravy.
- Straining - Grinding and straining helps in giving silky smooth gravy so do not skip this step.
- Color - Once red chili powder is added to butter quickly mix well, strain and add the gravy, this gives it the bright orange color. Do not burn as it will make the gravy color look dull. I did not add any color just kashmiri red chilies while grinding and normal chili powder while tempering which gives it a bright orange color just like in restaurants.
- Whole spices - Pick out whole spices as it may be overpowering in the gravy. However ensuring its flavor is infused in the gravy while cooking onion, tomato.
- Fresh cream - Do not add more fresh cream than mentioned quantity.
- Kasoori methi - Dry roast, crush and add kasoori methi for more flavor.
- You can even add the puree as such without straining. It will not be silky smooth but tastes good.
- Replacement - You can replace paneer with tofu, cream with coconut milk for vegan preferences.
- Smokey flavor - You can smoke it with smoked charcoal, ghee for a smokey flavor.







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Definitely try this recipe! Thank you for sharing!!