Paneer is one of the most versatile ingredients in Indian cooking. From creamy curries to spicy dry dishes, paneer can be turned into a satisfying meal with simple spices and fresh vegetables. This easy Paneer Recipe shows you how to make a delicious, restaurant-style Paneer Masala at home using soft paneer cubes, onion, tomato, spices and a creamy gravy.
The combination of lightly cooked paneer and rich onion-tomato masala makes this dish perfect for lunch, dinner or a special weekend meal. It pairs beautifully with roti, naan, paratha, jeera rice or plain basmati rice.
Paneer Recipe at a Glance
- Recipe: Paneer Masala
- Cuisine: Indian / North Indian
- Preparation Time: 15 minutes
- Cooking Time: 25 minutes
- Total Time: 40 minutes
- Servings: 4
- Difficulty: Easy
- Best Served With: Naan, roti, paratha and rice
Ingredients for Paneer Recipe
For the Paneer
- 250–300 g paneer
- 1 tablespoon oil or butter
- ½ teaspoon red chilli powder
- ¼ teaspoon turmeric powder
- A pinch of salt
For the Gravy
- 2 tablespoons oil
- 1 tablespoon butter
- 1 teaspoon cumin seeds
- 1 bay leaf
- 1-inch cinnamon stick
- 2 green cardamoms
- 1 large onion, finely chopped
- 1 tablespoon ginger-garlic paste
- 2 large tomatoes, finely chopped or pureed
- 1 teaspoon coriander powder
- ½ teaspoon turmeric powder
- 1 teaspoon red chilli powder
- ½ teaspoon garam masala
- ½ teaspoon cumin powder
- ½ teaspoon kasuri methi
- Salt to taste
- ½ cup water
- 2–3 tablespoons fresh cream, optional
- Fresh coriander leaves for garnish
A tomato-based paneer gravy is a common restaurant-style preparation, with butter or cream often used to create a richer texture.
How to Make Paneer Recipe at Home
Step 1: Prepare the Paneer
Cut the paneer into medium-sized cubes.
Mix the paneer with a little salt, turmeric and red chilli powder.
Heat oil or butter in a pan and lightly sauté the paneer cubes for 1–2 minutes on each side.
Do not over-fry the paneer. Excessive frying can make it chewy and hard.
Transfer the paneer to a plate.
Tip: If your paneer feels firm, soak the cooked cubes in warm water for a few minutes before adding them to the gravy. This helps keep them soft.
Step 2: Prepare the Masala
Heat oil and butter in a heavy pan.
Add cumin seeds, bay leaf, cinnamon and cardamom. Allow the whole spices to release their aroma.
Add the finely chopped onions and sauté until golden and translucent.
Add ginger-garlic paste and cook for another minute until the raw aroma disappears.
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Step 3: Add Tomatoes and Spices
Add the chopped or pureed tomatoes.
Cook over medium heat until the tomatoes become soft and the mixture thickens.
Add turmeric powder, red chilli powder, coriander powder and cumin powder.
Mix well and cook until the masala becomes fragrant and the oil begins to separate from the mixture.
Properly cooking the onion-tomato base is one of the important steps for developing a rich paneer curry flavour.
Step 4: Make the Gravy
Add around ½ cup of water and mix well.
Allow the gravy to simmer for 5–7 minutes.
If you prefer a smooth restaurant-style gravy, allow the cooked masala to cool slightly, blend it until smooth and return it to the pan.
Adjust the water according to your preferred consistency.
Step 5: Add Paneer
Add the lightly cooked paneer cubes to the gravy.
Mix gently so the paneer does not break.
Simmer for another 3–4 minutes on low heat.
Step 6: Finish the Dish
Add garam masala and crushed kasuri methi.
For a richer and creamier paneer dish, stir in fresh cream.
Cook for another minute and switch off the heat.
Garnish with freshly chopped coriander leaves.
Your delicious homemade paneer dish is ready to serve.
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Tips for Making Soft and Delicious Paneer
Use Fresh Paneer
Fresh paneer generally gives a softer texture and absorbs the flavours of the gravy well.
Don’t Overcook Paneer
Long cooking can make paneer rubbery. Add it toward the end and simmer briefly.
Cook the Masala Properly
Raw onion or tomato flavours can affect the final taste. Give the masala enough time to cook until it becomes thick and aromatic.
Balance the Spices
Paneer has a mild flavour, so the gravy should have a balanced combination of spice, tanginess and richness.
Add Cream at the End
If using cream, add it after reducing the heat. This gives the gravy a smoother and richer finish.
What to Serve With Paneer
This paneer recipe goes well with:
- Butter naan
- Plain naan
- Tandoori roti
- Chapati
- Laccha paratha
- Jeera rice
- Plain basmati rice
- Pulao
- Vegetable biryani
For a complete meal, serve paneer with naan or rice, onion salad and a simple cucumber raita.
Popular Paneer Variations
Paneer Butter Masala
A creamy tomato-based curry made with butter, paneer, cashews and mild spices. It is known for its smooth, rich gravy and is commonly served with naan or rice.
Kadai Paneer
Kadai paneer has a more robust and spicy flavour, usually combining paneer with capsicum, tomatoes, onions and freshly ground spices.
Paneer Tikka Masala
Paneer cubes are marinated with yogurt and spices, grilled or roasted and then added to a rich tomato-based gravy.
Shahi Paneer
This is a rich and mildly sweet paneer curry traditionally prepared with ingredients such as cream, nuts and aromatic spices.
Palak Paneer
Soft paneer cubes are cooked in a vibrant spinach-based gravy, making it a popular vegetarian Indian curry.
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Common Mistakes to Avoid
- Deep-frying paneer for too long.
- Adding too much water to the gravy.
- Using too many spices and overpowering the paneer.
- Leaving the onion and tomato masala undercooked.
- Cooking paneer for too long after adding it to the gravy.
- Adding cream over very high heat.
- Using very cold, hard paneer directly in the gravy.
Key Highlights
- Easy homemade paneer recipe
- Soft paneer in a rich onion-tomato gravy
- Simple ingredients and everyday spices
- Ready in around 40 minutes
- Cream can be added for extra richness
- Perfect with naan, roti, paratha or rice
- Easy to customize with vegetables and spices
- Suitable for lunch, dinner and special occasions
Conclusion
This Paneer Recipe is an easy way to prepare a delicious Indian paneer dish at home. Soft paneer cubes combined with a well-cooked onion-tomato masala create a rich and comforting curry without requiring complicated cooking techniques. You can keep it simple for an everyday meal or add butter, cream and extra spices for a restaurant-style version.
Once you master this basic recipe, you can use the same method as a starting point for paneer butter masala, kadai paneer, paneer tikka masala and several other popular paneer dishes.
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