Paneer Makhani Recipe| Restaurant Style Paneer Gravy


Paneer Makhani Recipe – A rich and creamy recipe of paneer made from a paste of roasted cashews and tomatoes.

Paneer Makhani is a sweet creamy dish made with butter, tomatoes, cashews or cream and served with lots of love. The recipe I have made today, is very close to my heart. It’s something I have been able to make very well and serve with love. And so, I am going to share this recipe with you. 

But before, I go ahead and give you the recipe steps, let me say a few things about this recipe.

What is Makhani Sauce? 


The word  makhan is a hindi word, which means butter. So makhani means buttery. Usually, a makhani gravy will have cream, tomatoes, yogurt and spices. 

If I go with the records of makhani gravy, it is said that this recipe was created by the Punjabis in Delhi at Moti Mahal Restaurant in the 1950’s.This sauce tastes best when it has an amount of sourness associated with it. So, usually sour cream or yogurt (home-made) is added to the recipe. 

(You can read the source of this here)

What’s in Paneer Makhani Gravy? 

  • This paneer makhani recipe has been prepared with cashews and tomatoes along with spices like cardamom and bayleaf. 
  • I have not used cream or dahi in this recipe. The reason is because, the sourness in the tomatoes were more than enough.
  • This recipe, doesn’t use any onions. Butter has been used generously, as this dish tastes really good with butter especially the salted butter.

They say that while you walk in great steads, its important to acknowledge your teachers. In that aspect, I would like to thank dasana amit from vegrecipesofindia, from whom I learnt to make many recipes, and also one who has inspired me into food blogging. With that said, I will now take you through to the recipe steps. 

Prep Time: 45min    Cooking time: 30 min

Paneer Makhani Recipe - Ingredients List  (Serves: 3 people)

Prep Time: 45min    Cooking time: 30 min


• Tomatoes – 3

• Cashews – 50 gms

• Cardamom – 1 

• Bay Leaf – 1 

• Butter – ½ slice 

• Paneer – 100 gm

• Kasturi methi leaves – ¼ tsp

• Turmeric Powder – 1tsp 

• Garam Masala – ½ tsp 

• Red Chilly Powder – ¼ tsp 

• Coriander Leaves – 5-10 leaves

Paneer Makhani Recipe - Preparation Steps

1. Soak 50gm cashews in water for about 10-15 min.


2. In the mean time, wash 3 tomatoes and chop it finely.


3. Heat ¼ slice of butter in a kadai. As butter melts, add in the soaked cashews and fry it well.



“ Keep a low flame, while frying the cashews. Switch off the flame when the cashews have started to turn brown.

If the cashews gets fried too much or turns dark brown, the gravy wouldn’t have the sweet taste.”


4. Place the cashews in a mixer and grind it to fine paste. 



“When you place the cashews, pour in just ¼ cup of water and grind the mix. Add water if required.”


5. Heat water in a vessel for about 2-3 min. When the water has just started to warm up, switch off the flame.

6. Add the paneer block into the water and let it stay in the pan for about 10-15 min. This process ensures that the paneer would become soft.


7. In the same kadai, heat ¼ slice of butter. As the butter melts, add 1 bayleaf and 1 cardamom pod.


8. As the bayleaf turn golden brown, add the chopped tomatoes into the mix. Add 1tsp of salt to the mix. Close the lid of the kadai and let the tomatoes cook. Give an occasional stir.


9. After about 5-10 min, the water would leave the sides of the tomatoes and you would be able to see that the butter and the water would separate.

10. At this point, add ¼ tbsp of red chilly powder, ½ tbsp garam masla into the mix and stir it well.


11. Add the cashew paste into the mix and stir well. You can close the lid of the pan, and let the gravy cook for about 2-3 min.


12. In the mean time, chop the paneer block into small pieces. When the gravy is ready add the paneer cubes into the mix.


13. While the paneer gets cooked in the gravy, add ¼ tbsp. of kasthuri methi on top of the mix.


14. After 2-3 min of cooking, switch off the flame and garnish the dish with some chopped coriander leaves.


15. Enjoy paneer makhani recipe with roti, rice or fried rice. Enjoy cooking.


If you like more paneer recipes, you can try paneer bhurji, paneer jalfrezi, kadai paneer

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