You all must be thinking why I am posting paneer recipes so much. It is third recipe of paneer which I will be posting in two weeks. Actually paneer is a very versatile ingredient which can be used in many recipes and it is easily available also.

My today’s recipe is Butter Paneer Masala in Restaurant Style. Butter Paneer Masala is most popular dish in every Indian Restaurant so thought of recreating it at home and it came out to be awesome. This is also my Mom’s recipe. Previously I made HYDERABADI ALOO (Mom’s Recipe) which was also yum.

Butter Paneer Masala can be best served with Lachedar Parantha, Naan and Rice.

Prep Time – 10-15 Mins         Cook Time – 15 Mins         Total Time – 30 Mins            Serving – 4


  1. Paneer (Cubed or Diced) – 350 Gms.
  2. Turmeric Powder – ½ Tsp.
  3. Water – 1 Tbsp.
  4. Oil – 6 Tbsp.
  5. Mustard Seeds – ½ Tsp.
  6. Cumin Seeds – ½ Tsp.
  7. Fennel Seeds – ½ Tsp.
  8. Onion Paste – 1 ½ Cups
  9. Tomato Paste – 1 ¼ Cups
  10. Red Chilli Powder – 2 Tbsp.
  11. Salt to Taste
  12. Kasuri Methi – 3 Tsp.
  13. Cream – 3 Tbsp.
  14. Tomato Ketchup – 2 Tbsp.
  15. Milk – 1 Cup
  16. Square Shaped Capsicum – 1 Cup
  17. Square Shaped Tomato – ½ Cup
  18. Onion Rings – 1 Cup
  19. Butter- 3 Tsp.

Method –

  1. Take a mixing bowl and prepare a paste of turmeric powder and water and marinate paneer pieces and leave it for 15 mins.
  2. Heat oil in a wok and add in mustard seed, fennel seeds and cumin seeds and allow them to crackle.
  3. Now add onion paste and cook it for 2-3 mins.
  4. Add tomato paste and cook it for 2-3 mins. more
  5. Now add red chilli powder, salt and kasuri methi and cook all spices with water (around 2 tbsp.)
  6. Now add cream and tomato ketchup and mix well.
  7. Add marinated paneer pieces and mix.
  8. Add milk and cook for good 5 mins. and switch off flame.
  9. Heat butter in another wok and add capsicum, tomato and onion and sauté them with little salt (add salt accordingly as we have added it in main gravy also) for few mins.
  10. Add sauté vegetables in main gravy and mix well.