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paneer makhani

Paneer Makhani Restaurant Style | Cottage Cheese in a Buttery Gravy

This creamy Paneer Makhani or Butter Paneer is a decadent and indulgent creamy gravy that is mildly spiced and very delicious. Serve it with rotis or rice.
Course Main Course
Cuisine Punjabi | North Indian
Prep Time 15 minutes
Cook Time 30 minutes
Total Time 45 minutes
Servings 4 serves
Author Rachna Parmar


  • 250 gm. fresh paneer cottage cheese cut in cubes
  • 2 onions chopped
  • 1 tbsp. ginger chopped
  • 1 tbsp. garlic chopped
  • 3 large tomatoes chopped
  • 3 green cardamom
  • 1-2 small pieces cinnamon
  • 3-4 cloves
  • 1 bay leaf
  • 2 tbsp. butter
  • 2-3 tbsp. cashews
  • 1 tbsp. kasuri methi
  • 2 tbsp. cream optional
  • 1/2 tsp. sugar
  • 1 tsp. garam masala
  • 1 tsp. chilli powder optional
  • 1 tbsp. deggi mirch for colour
  • 1 tsp. coriander powder
  • Salt as per taste


  • Melt butter in a pan.
  • Add cloves, cinnamon, bay leaf and cardamom and fry for a minute.
  • Now add chopped onions and ginger-garlic paste and fry on medium heat for about 5-7 minutes till the onions are golden brown.
  • Add tomatoes and cashews and fry for another 8 minutes or till tomatoes are mushy.
  • Turn off the gas and cool down.
  • Now blend to a thick paste.
  • Heat the pan again and pour this thick gravy into it.
  • Stir it constantly on low heat. The gravy has the tendency to sputter so you can cover the pan half way.
  • Continue to stir for about 10-15 minutes till the gravy becomes glossy. This shows that it is well cooked.
  • Now add the coriander powder, garam masala, both kinds of chilly powder, sugar and salt. Add about a cup of water to make a thick gravy. Stir and taste. Adjust seasoning.
  • Add the paneer cubes in . Don't cook for more than 2-3 minutes now. Crush kasuri methi and add to the gravy.
  • Switch off the gas. Add a swirl of cream and mix well. This enhances the creamy texture of the gravy.
  • Serve hot with rotis, naan or rice


Don't overcook the paneer or it becomes stringy. Just cook it a little so that it is soft and delicious.
You can use this makhani gravy and substitute paneer with grilled or tandoori chicken or seafood.
This is a mildly spicy gravy with a hint of sweet. If you want it spicier, adjust chilly powder as per taste.
Deggi Mirch gives a beautiful red colour to the gravy.
The gravy must be completely smooth so blend it well.