Stir in the diced onion and cook until softened (5-7 minutes). Pour in the tomatoes, bring to a simmer, cover and cook for 20 minutes.
1 large onion, 28 oz (800g) crushed tomatoes
Blend the sauce
Blend the sauce using a Vitamix or immersion blender until very smooth. Pour the sauce through a fine sieve to remove and discard any solids.
Marinate the paneer
While the sauce is cooking, combine all the marinade ingredients in a large bowl, add the paneer cubes and marinate for 15-20 minutes.
½ cup (120g) Greek yogurt, 2 tbsp canola oil, 2 tbsp lemon juice, 2 tsp garlic paste, 2 tsp ginger paste, 2 tsp Kasmiri chili powder, 1 tsp salt, ½ tsp garam masala, 14 oz (400g) paneer
Pan fry the paneer until golden
Heat oil in a large frying pan. Fry the paneer cubes over medium high-heat until golden. Use a slotted spoon to transfer the paneer into a bowl and wipe the pan clean. Reserve the marinade to use later.
1 tbsp canola oil
Incorporate the butter
Add a splash more oil to the same pan and fry the chili and cashew nuts for a couple minutes.
1 tbsp canola oil, 16 raw cashew nuts, 1 green chili
Add the sauce and bring to a simmer, adding a little hot water to loosen the sauce if it is too thick. Stir in the butter and reserved marinade.
4 - 6 tbsp unsalted butter
Finishing touches
Add the cream and paneer cubes. Simmer gently for a couple of minutes to warm through.
¼ cup (60ml) heavy cream
Taste and adjust seasoning if needed. Garnish with crushed fenugreek leaves and a final drizzle of cream and serve.
2 tsp kasuri methi
Video
Notes
Note 1: Make fresh garlic and ginger paste by blending 1 whole peeled garlic and 1/4 cup (40g) fresh chopped ginger with 2 tbsp vegetable oil and 1 teaspoon coarse salt in a small food processor such as the Ninja Food Chopper. You will be using quite a lot of this paste for this recipe (and most Indian recipes). Any leftover paste can be frozen in ice cube trays to use later.
Note 2: If you make this recipe using my homemade Masala Sauce you can skip making the sauce listed in the ingredients above, Simply marinate and fry the paneer. Pan fry the chili and cashews and add 1-2 cups of the premade masala sauce with enough water, as needed, to loosen it. Stir in the butter, cream and reserved marinade then add the cheese – done!
Leftovers and storage: This is one of those dishes that actually gets better with time. Just store it in an airtight container in the fridge for up to 4 days and let all those flavors deepen overnight.
Freezing: Paneer Butter Masala is suitable for freezing – portion into suitable containers or freezer bags and consume within two months. Thaw overnight in the fridge and reheat.
Reheating: Add a splash of water or cream to loosen the sauce and bring back that silky texture.
Recipe Variations
Vegan Butter Paneer: Use plant-based butter and cream and replace the paneer with extra firm tofu.
FODMAP-friendly version: Skip the onion, garlic and cashews (all are high fodmap) – simply omit and use a purely tomato-based sauce. Use firm tofu instead of paneer and a plant-based cream alternative such as coconut cream.