Easy Authentic Paneer Tikka Masala Recipe

Q: What is Paneer?

Every time I get asked this question, I answer “it’s Indian cottage cheese.” However, I always warn folks that please don’t actually go and buy cottage cheese for a recipe that calls for paneer! You won’t be happy with the outcome! Trust me, when I first came to Canada I took the translation literally and my Paneer Makhani was a disgusting mess! Unfortunately, it was inedible! Paneer is a fresh, soft cheese that is famous in Indian cuisine. It is made from whole milk and either buttermilk, lemon or lime, or vinegar. You get paneer by boiling milk and extracting the curds. These curds are actually referred to as chenna, and if you stop at this stage, you can use the chenna to enjoy with some buttery toast and tomato chutney for breakfast, or use it in desserts! You can learn more by checking out my chenna recipe! Otherwise, to make paneer, you’ll use a cheesecloth to get all the moisture out and then press down on what’s left. There you go, paneer! You can check out how to make Fresh Homemade Paneer in my recipe, or you can buy it from some grocery stores or your local South Asian grocery store. Lots of people have written to me saying they can’t find paneer anywhere, so you’ll have to make it yourself. I usually buy my own paneer for the sake of saving time, and because you need so much milk to yield so little! However, I’ll admit that making your own paneer really is worth it! It is totally so soft, fresher, and tastier than what you get in the package! Do whatever works for you! Back in India, we didn’t have to make our own paneer because you could get it freshly made from the market.

Q: What does “tikka” mean?

Tikka refers to little chunks of marinated protein or veggies that are broiled, grilled, or sautéed to a smoky perfection. You can have mushroom tikka, chicken tikka, or in this case, paneer tikka!

✦ Join the Kitchen

Paneer Tikka Masala has the essence of the famous Chicken Tikka Masala but with the goodness of paneer instead of chicken so that it’s vegetarian-friendly!

What is Paneer?▼

Every time I get asked this question, I answer “it’s Indian cottage cheese.” However, I always warn folks that please don’t actually go and buy cottage cheese for a recipe that calls for paneer! You won’t be happy with the outcome! Trust me, when I first came to Canada I took the translation literally and my Paneer Makhani was a disgusting mess! Unfortunately, it was inedible!

Paneer is a fresh, soft cheese that is famous in Indian cuisine. It is made from whole milk and either buttermilk, lemon or lime, or vinegar. You get paneer by boiling milk and extracting the curds. These curds are actually referred to as chenna, and if you stop at this stage, you can use the chenna to enjoy with some buttery toast and tomato chutney for breakfast, or use it in desserts! You can learn more by checking out my chenna recipe!

Otherwise, to make paneer, you’ll use a cheesecloth to get all the moisture out and then press down on what’s left. There you go, paneer! You can check out how to make Fresh Homemade Paneer in my recipe, or you can buy it from some grocery stores or your local South Asian grocery store. Lots of people have written to me saying they can’t find paneer anywhere, so you’ll have to make it yourself.

I usually buy my own paneer for the sake of saving time, and because you need so much milk to yield so little! However, I’ll admit that making your own paneer really is worth it! It is totally so soft, fresher, and tastier than what you get in the package! Do whatever works for you! Back in India, we didn’t have to make our own paneer because you could get it freshly made from the market.

What does “tikka” mean?▼

Tikka refers to little chunks of marinated protein or veggies that are broiled, grilled, or sautéed to a smoky perfection. You can have mushroom tikka, chicken tikka, or in this case, paneer tikka!

What’s a masala?▼

A masala is a spice mixture used to make a gravy. For our Paneer, the masala refers to the gravy that will be made with onions, peppers, and tomatoes, seasoned with a variety of aromatic Indian spices, which I’ll give further details on in the recipe!

Why Make This Paneer Tikka Masala!

To be honest with you, I honestly don’t know if I prefer Paneer Tikka Masala or Chicken Tikka Masala. Both dishes are incredible in their own way! If you’re a vegetarian, then you definitely must make this recipe and you’ll be blown away! Even if you’re not vegetarian, if you’re looking for a Meatless Monday treat or just want to switch things up, I guarantee this will satisfy your taste buds and you’ll want to make it again and again! Bring this restaurant classic to your family for dinner tonight and skip the takeout! Here are some reasons why you gotta make this restaurant-style Paneer Tikka Masala:

It features a rich and creamy tomato gravy
The flavors of the marinated paneer and the smokiness just seep into the gravy
Pairs well with rice or breads
A restaurant quality meal at home that’s vegetarian, making it suitable for your whole family!

What’s the difference between paneer tikka masala & paneer butter masala?▼

These dishes seem very similar, and at first glance they probably look identical. However, there are some differences! Let’s review how they differ to set the story straight!

Paneer Tikka Masala is distinguished by:

We add paneer tikka into our gravy, which is marinated and then broiled, grilled or sautéed
The gravy has a slight bit of spiciness
Peppers are cooked in the gravy and are used for garnish
The gravy is on the thicker and chunkier side

On the other hand, Paneer Butter Masala is defined by the following characteristics:

The gravy is completely smooth and creamier
More butter and cream is used to get a paler colour in the gravy
The paneer is not cooked and is added directly to the gravy
No peppers are in the gravy and the only garnish is an extra drizzle of cream!

Tips for a Restaurant-Style Paneer Tikka Masala

Sauté the veggies at a very high heat in order to get a nice char on them. They won’t be mushy, but they’ll become a little soft.
Keep stirring the tomatoes so that they don’t get burnt.
Keep a close eye on the paneer while it’s under the broiler.
You could also cook the Paneer Tikkas on the barbecue or in a cast iron pan.
Use 10% cream since it’s lighter and not as rich as heavy cream. This is good to thin the gravy out and to adjust its consistency gradually.
For presentation, set some of the sautéed veggies aside for decoration to be used in the final plating.

The Best Paneer Tikka Masala Recipe Ingredients

Let’s review the ingredients we’ll need to make a truly authentic restaurant-quality Paneer Tikka Masala recipe! For all measurements with the full ingredient list, make sure to scroll to the bottom of this post for the FULL PRINTABLE RECIPE CARD, so you can save this recipe for later!

For the Paneer Marinade

Paneer
Lemon or lime juice
Plain yogurt
Deggi mirch
Turmeric
Garam masala
Kasoori methi
salt

For the Masala

Olive oil
Butter
Cumin seeds
Onion, finely diced
Garlic cloves, finely chopped
Ginger, finely chopped
Tomato, roughly diced
Turmeric
Ground coriander
Passata/strained tomatoes
Deggi mirch
Honey
Ground green cardamom
Kasoori methi/dried fenugreek leaves
10% half and half cream
Salt to taste

For Garnish

Red pepper, cut in large chunks
Green pepper, cut in large chunks
Onion, cut in large chunks
Olive oil

How to Make This Restaurant-Style Paneer Tikka Masala Recipe

Marinate the Paneer

In a bowl add all the ingredients for the marinade except Paneer. Whisk well and taste to adjust for seasoning.
Add the cubed paneer to the marinade and gently toss well to combine. Set aside to marinade while you prepare the sauce.

For the Garnish

Heat a wok on medium-high heat and add oil.
Add peppers and onion and stir well. Cook for about 3 minutes while stirring occasionally. The vegetables should have a light sear and still be crisp.
Set the vegetables aside in a bowl and place wok back on the heat to prepare the sauce.

For the Tikka Masala Sauce

Heat 1 Tbsp olive oil and 1 Tbsp butter in same wok as garnish on medium heat. Add cumin seeds and cook for 1-2 minutes or until aromatic.
Add onions, pinch of salt and sauté until translucent, about 3-4 minutes. Add ginger and garlic and cook for 3-4 more minutes.
Add tomatoes, the juices released will help deglaze the pan. Cook for 1-2 minutes and add turmeric and coriander. Mix well and cook until tomatoes are on the verge of breaking down.
Add passata and bring to a simmer on medium heat. Then, add in a pinch of salt and deggi mirch and cook for 7 - 8 minutes, or until the sauce has reduced and is released from the pan easily. Stir occasionally to ensure sauce does not burn.
Add 1 Tbsp of honey and pinch of green cardamom. Mix well and taste, add more honey if you prefer the sauce to be sweeter. Cook for about 30 seconds
Crush the kasoori methi/dried fenugreek leaves between the palm of your hands and add to the sauce, mix well. Cook for 30 seconds.
Pour in cream and mix well and set aside. Follow the instructions below to prepare the Paneer Tikka.

For the Paneer Tikka and to Serve

Turn the oven to broil mode and adjust the oven rack to the topmost position.
Prepare a baking sheet with a wire rack and arrange the marinated cubes of paneer.
Place under the broiler and cook until the marinade starts to char slightly. Once the baking sheet is hot, add water to the baking sheet to prevent it from overheating.
Feel free to baste with more marinade as you turn the paneer cubes to baste the other side. Once at least 2-3 sides are lightly browned and the paneer feels soft, take out the paneer from the oven and add to the Tikka Masala sauce.
To serve, add the vegetables from the garnish prep from earlier and serve hot.

Serving Suggestions for Paneer Tikka Masala

It wouldn’t be a restaurant-quality meal without some awesome side dishes! I love having Paneer Tikka Masala with some breads! Here are the breads that would go so well with your wonderful feast!

Rice is also an excellent option! Here is what I recommend:

For the best texture, use fresh homemade paneer — it soaks up all that creamy masala beautifully.

Want a shortcut to that creamy gravy? Use my makhani sauce as the base.

Let me know what you think of this recipe in the comments! If you’ve tried this recipe, be sure to post it on social media and tag it with #cookingwithanadi and mention me @cookingwithanadi. Thank you!

Recipe by Anadi Misra