Recipe for Paneer Makhani
Paneer Makhani (Butter Paneer) is one of the most popular dishes made with Paneer. Its unique flavour and slightly sweet taste make it different from other gravy dishes made with Paneer.
Paneer consumption in India is said to have started in Punjab, but today, it is relished by people in almost all parts of India. The migration of people between states has also led to a food revolution in the country and introduced people to its rich food diversity. It is common now that dosa and idly are made in north Indian homes, while the south Indians try parathas and dal makhani. While the people from the east are trying the dhoklas and theplas from the west, the people from the west are trying the momos and thukpas!
In line with this massive change in eating habits because of increased access to different foods, paneer is one ingredient that has penetrated many households in India. Dishes made with paneer are a favourite amongst vegetarians as they are tasty and a great source of protein. Paneer is served during parties, functions, and family dinners. Many delicious dishes like Palak Paneer, Paneer Makhni, Paneer Kofta, and Matar Paneer are commonly made in restaurants, dhabas, and homes. People are continuing to innovate and create new delicacies every day. Such is the popularity of paneer that it has found its way into the Indian versions of Pasta, Pizzas, and Noodles too!
When I moved to Germany 3 years back, I wasn’t sure that paneer would be available in this European country. But to my pleasant surprise, it is readily available even in the smallest Indian stores in my city. And, sometimes, when it is unavailable, I make it at home with fresh milk. The process is simple and doesn’t take much time.
Today, I am sharing with you a simple recipe for Paneer Makhani. It is a dish that requires some time to make, so you have to be patient. But I can assure you that once you eat this dish, you will get the reward for your patience and effort! Despite the minimal use of spices, this dish is delicious. Its rich gravy and slightly sweet taste make it stand out from the rest of the Paneer dishes.
So, let’s start.
Ingredients needed to make Paneer Makhani:
- 3 Medium-Sized Onions
- 3 Large Tomatoes
- 4 Dry Kashmiri Red Chillies
- 20 Cashews
- 3 cups Water
- 1 tbsp Ghee
- 1 tbsp Fresh Coriander leaves, finely chopped
- 1 tsp Garam Masala
- 1 tsp Kashmiri Red Chilli Powder
- 1 tbsp Kasoori Methi
- 1 Black Cardamom
- ¾ tbsp Sweetened Condensed Milk
- 1 tbsp Fresh Cream
- 1 tbsp Butter
- 400 gm Paneer; cut into cubes
- Salt; to taste
Method to make Paneer Makhani
- Heat water in a cooking pot. Add chopped onions, Dry Red Chillies, tomatoes, salt and cashews.
- Cook for about 10 minutes. Once cooked, turn off the heat and let it cool. Once cooked, grind it into a fine paste. Keep aside.
- Heat Ghee in a Kadhai/Pan. Keep the heat on medium. Add Garam Masala, Kashmiri Red Chilli Powder, chopped Coriander leaves and black Cardamom. Then add Kasuri Methi.
- Mix with a spatula for about 10-15 seconds.
- Add the ground paste.
- Give it a good mix. Reduce the heat and let this cook for about 20 minutes on medium heat, mixing it from time to time.
- After about 20 minutes, add condensed milk.
- Then add Fresh Cream.
- Add the Paneer pieces.
- Mix everything. Taste and adjust the salt. Cook for another 5 minutes on medium heat.
- While serving, garnish with chopped coriander leaves and butter.
- Serve hot with roti or naan.
Some notes for my readers in Germany:
You can get most of the ingredients needed for this recipe from a German Supermarket.
Here are the German names for the ingredients available in German Supermarkets:
Onion: Zwiebel
Tomatoes: Zwiebel
Cashews: Cashewkerne
Ghee: Ghee/Butterschmalz
Fresh Coriander Leaves: Frische Korianderblätter
Sweetened Condensed Milk: Kondensmilch (Milchmädchen)
Fresh Cream: Kochsahne
Butter: Butter
Salt: Salz
If you have difficulty understanding any of these products in German Supermarkets, check out my articles in my German Supermarkets Page.
For Indian ingredients such as Dry Kashmiri Red chillies, Garam Masala, Kashmiri Red Chilli Powder, Kasoori Methi, Black Cardamom and Paneer, you can check out the online shop of Spicelands. They are a big store for Indian food products based out of Frankfurt. They supply all across Germany and a few neighbouring countries as well.
Alternatively, you can even buy these ingredients from amazon.de. Links are given below:
Onion: https://amzn.to/3nepwWV
Tomatoes: https://amzn.to/41Ofn26
Cashews: https://amzn.to/40OQceJ
Ghee: https://amzn.to/40Qqu9s
Fresh Coriander: https://amzn.to/3NnBxEj
Condensed Milk: https://amzn.to/3ngCseQ
Cream: https://amzn.to/3LCtYIy
Butter: https://amzn.to/3oXWFXe
Salt: https://amzn.to/3n5tYYc
Dry Kashmiri Red Chillies: https://amzn.to/3ncc9GK
Kashmiri Red Chilli Powder: https://amzn.to/3Vgt9s0
Garam Masala: https://amzn.to/3oPhtAm
Kasoori Methi: https://amzn.to/41LURPD
Paneer: https://amzn.to/3AEiIVJ
Equipment needed for the recipe:
Pleae note that I use these in my kitchen. I am happy and satisfied with these products. Therefore, these are based on my personal experience and hence, i recomend these to my readers.
Cooking Pot: https://amzn.to/41MqsRy
Mixer:
Option 1 Bosch: https://amzn.to/3LzMbGF (Perfect for Indian cooking, with great reviews)
Option 2: Preethi: https://amzn.to/3n9XCLH ( I use this. It is perfect for Indian cooking, but priced higher than Bosch)
Kadhai: https://amzn.to/3oXXNtW
Here is the recipe in printable format:

Recipe for Paneer Makhni
Equipment
- Cooking Pot
- Mixer
- Kadhai
Ingredients
- 3 Medium-Sized Onions
- 3 Large Tomatoes
- 4 Dry Kashmiri Red Chillies
- 20 Cashews
- 3 cups Water
- 1 tbsp Ghee
- 1 tbsp Fresh Coriander leaves, finely chopped
- 1 tsp Garam Masala
- 1 tsp Kashmiri Red Chilli Powder
- 1 tbsp Kasoori Methi
- 1 Black Cardamom
- ¾ tbsp Sweetened Condensed Milk
- 1 tbsp Fresh Cream
- 1 tbsp Butter
- 400 gm Paneer; cut into cubes
- Salt; to taste
Instructions
- Heat water in a cooking pot. Add chopped onions, Dry Red Chillies, tomatoes, salt and cashews.
- Cook for about 10 minutes. Once cooked, turn off the heat and let it cool.
- Once cooked, grind it into a fine paste. Keep aside.
- Heat Ghee in a Kadhai/Pan. Keep the heat on medium. Add Garam Masala, Kashmiri Red Chilli Powder, chopped Coriander leaves and black Cardamom.
- Add Kasuri Methi. Mix with a spatula for about 10-15 seconds.
- Add the ground paste.
- Give it a good mix. Reduce the heat and let this cook for about 20 minutes on medium heat, mixing it from time to time.
- After about 20 minutes, add condensed milk.
- Then add Fresh Cream.
- Add the Paneer pieces.
- Mix everything. Taste and adjust the salt. Cook for another 5 minutes on medium heat.
- While serving, garnish with chopped coriander leaves and butter.
- Serve hot with roti or naan.
Please note that this article contains affiliate links. If you buy using these links, I receive a small commission. This has no effect on the price for you.
Please subscribe to my newsletter to recieve my posts in your mailbox.
Follow me on:
Leave a Reply