Instant Pot Paneer Butter Masala | Paneer Makhani

Restaurant Style Paneer Butter Masala or Paneer Makhani is one of the most popular paneer recipes in Indian cuisine where paneer cubes (Indian Cottage Cheese) are simmered in a mildly rich onion tomato cashew nut based gravy and Of course with some butter and cream made in the Stovetop or Instant Pot pressure cooker. Keto-friendly, Gluten-free, Low carb.

There is one North Indian a la carte curry, which my family never discusses before ordering it in a Restaurant & it is undoubtedly Paneer Butter Masala. There is no restaurant, where we have not had this curry. It tastes great with Naan, Paratha, Roti's, as well as the gravy, goes well with Jeera Rice or Veg Biryani.

So this curry is superhit in our family. Recreating this authentic restaurant taste at home, was something I was always passionate about & here it is. If you follow this easy one-pot recipe as is, I am sure you will impress your family and friends. I have shared how to make Paneer Butter Masala in Instant Pot and Stovetop methods below.

It is called by various names such as butter paneer masala or butter paneer or paneer makhani and is a popular paneer dish on the restaurant's menu.

More Instant Pot Curry Recipes from my blog Black-Eyed Pea Curry, Lauki Ki Subji, Vegetable Korma, Chickpea Curry, Mushroom Masala

This Butter Paneer dish is also Keto Friendly, just replace cashew nuts with almonds or just skip it and add more heavy cream at the end. If you are on a Keto or Low Carb Diet, then check out my 40+ Keto Indian Food Recipes Collection.

Paneer Makhani Ingredients

• Paneer: homemade or store-bought paneer cubed into 1-inch pieces (about 200 grams).
• Onion, garlic, and ginger: I have used roughly diced onions, along with garlic and ginger.
• Tomato: I have used 3 medium tomatoes. You can also use canned crushed or diced tomatoes.
• Cashew nuts: This is one of the most important ingredients to add creaminess to the dish. So do not skip it. You can also use almonds instead. In restaurants, they use a combination of white melon seeds (magaj) and cashew nuts.
• Cream: I have used heavy cream. You can also use cashew or coconut cream.
• Oil or Butter: used butter in this recipe.
• Herbs & spices: I have used fresh-cut cilantro, kasuri methi for herbs, and red chili powder, and garam masala (or Kitchen King Masala) for dry spices.
• Whole Spices: Used cinnamon stick, cloves, and cardamom. You can also skip whole spices and just add extra garam masala at the end.
• Lemon Juice: Use fresh lemon juce whenever possible.

How to Make Paneer Butter Masala?

Stovetop Pot Method

Put the onions, tomatoes, cashew nuts, ginger, garlic, whole spices, and 1 cup of water into a pan and bring to a boil.

Cook on a medium flame for at least 15-20 minutes. Remove from the heat and cool. Blend to a smooth puree/paste using a high-speed blender.

In a pan, heat the butter, add the jeera seeds and saute for 30 seconds.

Add kashmiri red chili powder, bay leaf, give a quick stir.

Then add onion-tomato cashew puree. Close lid and cook on medium heat for 2-3 minutes.

Add the paneer, kasoori methi, garam masala, or kitchen king masala, salt. Mix well and bring the mixture to a boil.

Finally, gently stir in the cream and paneer butter masala is ready to serve.

Serve Restaurant Style Paneer Butter Masala/Paneer makhani recipe hot with chapati, naan, rice, and onion slices.

Instant Pot Method

Firstly, add 1 cup of water into the Instant pot insert. Place the trivet.

Put the onions, tomatoes, cashew nuts, ginger, garlic, whole spices, and 1 cup of water into a deep pan. Place the pan over the trivet.

Close the lid on the pot and turn pressure valve to SEALING position.

Set the pot to MANUAL/PRESSURE COOK (High Pressure) and set the timer to 8 minutes. Once the pot beeps, let the pressure release naturally.

Puree cooked onion-tomato mixture using a hand blender until smooth. If you don’t have a hand blender, puree in a blender in batches once slightly cooled.

Then I usually sieve the onion-tomato puree for silky texture and discard the residue but it's totally optional.

Press SAUTE on Instant Pot. Add butter/oil to the POT. Once hot add cumin seeds and saute for 30 seconds.

Add kashmiri red chili powder, bay leaf, give a quick stir.

Then add onion-tomato-cashew pureed mixture. Mix well and cook for 2-3 minutes.

Add the paneer, kasoori methi, garam masala, salt. Mix well and bring the mixture to a boil.

Lastly, gently stir in the cream and paneer butter masala is ready to serve.

Serve Instant pot paneer butter masala or paneer makhani recipe hot with chapati, naan, rice, and onion slices.

What to serve with Paneer Butter Masala?

This Paneer curry is a delicious side dish that acts as a perfect complement to various delicacies like Naan, parotta, roti. I personally like serving it along with Restaurant style Dal Makhani with jeera rice or ghee rice.

Tips & Variations

1. If using a store-bought paneer, soak it in hot water for 15-20 minutes before using in the recipe.
2. Grind the cooked tomato-onion mixture to a smooth paste. You can also strain the masala through a soup strainer to get really creamy curry.
3. Always add the cream at the end of cooking else it will curdle.
4. Use nuts in the gravy, it makes the gravy thick and creamy. I have used Cashews in this recipe but almonds, melon seeds also work.
5. Adding sugar balances the flavors and so you can add ½ teaspoon of sugar or 1 teaspoon of honey in the end.
6. I usually add kitchen king masala (also available in the Indian grocery store) in place of garam masala powder to get the restaurant-style flavor to the paneer recipe.
7. I have added Kashmiri red chili powder to give nice red color to this dish. However, if you want to make it spicier add extra red chili powder.
8. If you don't have whole spices then add an extra 1 teaspoon of garam masala instead at the end.

Recipe FAQs

Check out my other Indian Paneer Recipes like

• Paneer Tikka
• Matar Paneer
• Paneer Biryani
• Palak Paneer
• Airfryer Paneer Popcorn
• Palak Paneer Paratha
• Paneer Bhurji Sandwich

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