Indulge in Royalty with this Luxurious Paneer Makhani Recipe

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Cooking With Anadi

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This paneer makhani recipe is incredibly simple and the style is inspired from my favorite restaurant in India, which remains to this date. It used to be a really cool restaurant called Chor Bizarre. I know, bizarre name right? I wanna make it clear that this is not a sponsored post, I just have such good memories from this restaurant.

Well we asked the restaurant manager one afternoon and we learned that the restaurant is based after a Chor Bazaar (Hindi for a thieve’s market), That made a lot of sense given the decor of the restaurant; it was set up such that each element felt random, out of place, but strangely satisfyingly put together. Unfortunately my favorite location in Gurgaon shut down a number of years ago.

Before my sister and I were allowed to order non-vegetarian food (fun fact about me - I was a vegetarian till I was a teenager!), our set menu at restaurants was Paneer Makhani, Dal Makhani and Butter Naan, and that satisfied our bellies. I remember how massive the paneer pieces were, and that was such a highlight of the meal!

I loved the experience so much each time that I just had to try my hand at replicating those incredible flavors for you lovely people! I have made this paneer makhani recipe incredibly simple for you to easily put together. My motto always goes that there’s no reason not to enjoy restaurant quality dinners at home!

Two Birds with One Stone

If you are serving both vegetarian and non-vegetarian crowds, you can easily treat them both by following my Makhani sauce - the ultimate butter sauce recipe. For the paneer makhani recipe, simply add chunks of paneer to the sauce and simmer for a few minutes. For non-vegetarians, add my BEST Chicken Tikka at Home and you have the best butter chicken.

Due to the milky, rich nature of paneer, once simmered with the sauce, it adds this subtle sweetness and really makes the sauce unique in flavor.

Shahi Paneer vs. Paneer Makhani vs. Paneer Butter Masala vs. Paneer Tikka Masala

Often Paneer Makhani, Shahi Paneer, Paneer Tikka Masala and Paneer Butter Masala are confused to be one and the same. Here’s your guide on how to distinguish the four dishes!

Shahi Paneer

Shahi is the reference to the royal title of Shahanshah from the Mughal empire. Usually it is much sweeter in taste, which can be attributed to various nuts and onions used in the sauce. It is also much lighter than Paneer Butter Masala or Paneer Makhani since it does not need to be cooked in butter. The gravy is much smoother and has a yellowish-orange color.

Paneer Butter Masala

The distinctions comes from the use of onions, whole spices and a spicier flavor profile compared to the sweetness in Shahi Paneer or Paneer Makhani. The color is usually closer to the bright reddish orange of Paneer Makhani.

Paneer Tikka Masala

In this dish, the paneer is marinated and cooked on a skewer. Then, the paneer is added to the gravy. The smokiness of the paneer is incorporated into the gravy. This is the vegetarian version of Chicken Tikka Masala, and this dish is a bit spicier than the two mentioned above.

Paneer Makhani

Each restaurant has its own way to prepare their version of this dish. Usually this dish is the vegetarian alternative to Murgh Makhani (Butter Chicken) and the paneer is tossed with the smooth, sweet and spicy Makhani sauce. The key elements being cream, cashews and tomatoes.

Still confused? I don’t blame you.

Serving Suggestions for the Best Restaurant-Style Paneer Makhani Recipe

Each restaurant makes a paneer makhani recipe with its own unique twist. You may have had the same dishes prepared in multiple ways and the flavors may intersect. No matter the difference, all four dishes are amazing and go great with these breads:

• Homemade Tandoori Naan
• Rumali Roti
• Punjabi Lachha Paratha
• Classic Homestyle Roti/Chapati/Phulka
• Classic Layered Paratha

Tools Needed

• Large pot
• Wooden spoon
• Food processor
• Strainer
• Spatula

How Should the Mughlai Style Paneer Makhani Gravy Be Prepared?

This butter chicken is a modern re-imagining of the traditional butter chicken recipe. This recipe uses all the elements that makes a great makhani sauce.

No Onions!

If you see a butter chicken or paneer makhani recipe that uses onions to bring “body” or “thickness” to the sauce, turn around and run away. But seriously, traditionally, a makhani sauce is made of butter, tomatoes and cream, hence the name “makhan” which is Hindi for butter.

A Balanced & Tangy Flavor

Most people either associate the sauce to a spicy Indian curry or an overly sweet dish. This can be made with Tandoori chicken or paneer for vegetarians. When in reality, the sauce should strike the perfect, playful balance between sweet and spicy.

A great time saver and alternative to using fresh tomatoes is using strained, sweet Italian tomatoes, also known as Passata.

It is great for creating a perfectly smooth gravy, since it is already strained and contains no tomato peels.

It is sweet and tangy and is consistent in flavor, so you can guarantee each batch of the sauce will taste the same.

And lastly, it is such a time saver!

Aromatic & Rich Gravy

Butter: I prefer to use unsalted butter so I can have complete control over the flavor of the dish. Butter adds a shine and smoothness to this sauce and is an essential part of, well, makhani (buttery) sauce. You can adjust the amount of butter to your liking, but be aware that the final gravy may not taste the same.

Cardamom: Known as the Queen of all spices due to its extravagant, intoxicating aroma. Usually associated with green cardamom, the flavors are slightly sweet, minty and pine-like and adds a wonderful scent to the sauce once the tomatoes are blended in the food processor. There are also several healing and health benefits from cardamom, you can read more about it here.

Mace: Usually used in Indian cuisine, this spice grows on the outside kernel of the nutmeg. In terms of flavor, it is a much more subtle version of nutmeg and helps enhance the sweetness and spiciness in the sauce.

Cashews: These really help add richness and naturally thicken the sauce. I enjoy roasting the cashews with the whole spices and butter to lightly roast the cashews. *You can omit cashews if you have a nut allergy

Ginger-Garlic Paste: An essential to numerous dishes, not only in Indian cooking but in many other cuisines! This mixture is made up of 1 part ginger: 2 parts garlic. This paste helps to add a grounded heat, and spiciness to the dish. Since this is a restaurant style recipe, the amount we use is more than usual.

Deggi Mirch: This ingredient is key to add a natural red color to the gravy without the use of any artificial colors. Made from mild Kashmiri red chilies, they are not too spicy and can be easily found at an Indian grocer. You can also find it on Amazon.

Honey: Although sugar can be an alternative to honey, I strongly recommend using honey. I find the sweetness from sugar is too intense, while honey carries a much softer, smoother sweetness which is much easier to control to reach the perfect level of balance between sweet and spicy in the sauce.

Dried Fenugreek Leaves: Also know as Kasoori Methi in Hindi, these leaves are crushed before adding to the gravy. While bitter in taste when dry, once added to gravy, they “wake up!” and add a beautiful fragrance and sweetness to the sauce.

Garam masala: Usually added at the end of the cooking process, this combination of several roasted whole spices add the final touch of warmth and spice to the sauce.

Cream: Traditionally heavy cream is used to finish of the sauce and give it the signature orange color, I find it is sometimes too rich. Instead, I prefer adding 10% cream, which helps thin out the gravy to my liking.

Paneer: The final addition is the paneer. You may be surprised to learn that the paneer is added directly to the sauce without any cooking. Paneer itself is ready to eat, while some recipes require you to lightly fry the paneer before tossing in the sauce, I quite enjoy the soft, texture lathered in the sauce. I find lightly frying the paneer, while helps the paneer hold its shape, it makes it firm. You can buy it at the store or make it yourself.

In my recipe, I like to cut the paneer into large, generous rectangles, which I find helps make this dish feel even more special.

Tips to Making the Most Amazing Paneer Makhani Recipe

• Puree and strain the sauce completely for the smoothest restaurant quality sauce.
• Find the best paneer you can find, here the better the quality of your ingredients, the more tastier your dish will be.
• Same goes for the tomatoes. Find the best passata/pureed tomatoes - my personal preference are Italian strained tomatoes.
• Use your favorite sweetener to balance out the spice for this makhani sauce. Honey, sugar, brown sugar and jaggery will be great!
• Use 10% cream instead of heavy cream so you can easily adjust the consistency of the sauce and keep that bright orange color.

So serve hot and enjoy!

How to Get a Silky Makhani Gravy: Blender, Sieve and Timings

Almost everything that separates a restaurant makhani gravy from a homemade one happens before the paneer ever goes in. Start with 1.5 tablespoons of the butter (of 3 tbsp butter total, kept divided on purpose) and let the 6 to 8 cardamoms and 4 to 6 pieces of mace saute with a quarter cup of cashews for a few minutes, 3 to 4 minutes is usually right, until the whole thing smells sweet and toasty. Those cashews are doing the job of a cashew paste, they just soften in the fat first instead of being soaked separately.

Then 1.5 tablespoons of ginger garlic paste goes in and needs a full 4 to 5 mins of stirring. This is the step people rush. Raw ginger and garlic taste sharp and slightly metallic, and no amount of cream later will cover it up. Stir often, because the paste sticks.

Add the 500 ml of passata and bring it to a lazy bubble rather than a rolling boil, then stir in the tablespoon of deggi mirch and a teaspoon of salt, cover, and cook 10 to 12 minutes, stirring every 2 to 3 minutes. There is no hot water and no cup water anywhere in this sauce. The passata is the only liquid until the cream, and adding water to a makhani gravy is exactly how it ends up tasting thin.

Now the two steps that actually make it smooth. Once the honey and the remaining butter have cooked in for 4 to 5 minutes, the whole mixture goes into a food processor, or a blender if that is what you own, and gets pureed for a minute or two into a genuinely smooth puree. Then push that puree through a fine mesh sieve back into the pot with a spatula. It is a few minutes of work and it is the single biggest difference in the final texture, because it catches the cardamom husk fragments and any cashew grit the blades missed.

Finish gently. Crush the tablespoon of kasuri methi between your palms before it goes in, which wakes up the dried fenugreek leaves, and give it 1 to 2 minutes. Then the cream and half a teaspoon garam masala, which is more of a sprinkle than a spoonful, and finally the 400 g of paneer cut into half inch thick squares. Cooking paneer for longer does not improve it: 3 to 5 minutes is all it needs, and the sauce will keep thickening the whole time. If it goes too far, loosen it with more cream, never with water.

Ingredient Swaps for Paneer Makhani

Paneer. Paneer is Indian cottage cheese, a fresh unaged Indian cheese that holds its shape in heat instead of melting, which is why butter paneer works as a dish at all. Cut it into large squares rather than small cubes, as the bigger pieces stay tender through the simmer.

Tomatoes. Passata is strained tomato puree and it is here for a reason: it gives the same result in February as in August, with no peeling, no seeding and no watery patch. If you would rather start from ripe tomatoes, blanch and puree them and expect to cook the sauce longer to drive off the extra water.

Cream and sweetener. The recipe calls for 10% cream, not whipping cream, because a lighter cream lets you adjust the consistency freely and keeps the color bright orange. Whipping cream works if that is what is in the fridge, just use less of it. For the sweetness, 2 to 3 tablespoons of honey balances the tomato here rather than a teaspoon sugar, and jaggery or brown sugar are just as good if honey is not your thing.

Spices and nuts. Deggi mirch is mild and mostly there for color, so sweet paprika with a pinch of cayenne is the closest supermarket stand in. Note that there are no cloves in this makhani at all, and no bay leaf either, the perfume is entirely green cardamom and mace, which is what makes it taste Mughlai rather than like a generic curry. If cashews are a problem, blanched almonds will thicken the sauce too, though it will not be quite as silky.