Paneer Masala | How to Make Paneer Masala Restaurant Style

(Last Updated On: June 6, 2015)

Paneer (Indian Cheese) is very popular and one of the most common ingredients in Indian cooking. In fact milk and milk based products in general like cream, yogurt, ghee, butter, mawa (khoa) are integral part of Indian cooking. At my home we love eating paneer some way or other. Some times I make paneer sandwich, paneer nuggets, paneer paratha ,paneer bhurji or this yummy paneer masala.

I mostly make Paneer at home by curdling the milk with food acid like vinegar, lemon juice or citric acid. After curdling, I sieve it through the thin strainer or in muslin cloth. Then I press the curd with the heavy weight to make it firm. Homemade paneer can be used for up to 2-3 days (if refrigerated). But homemade or store bought, any Paneer would be fine for this paneer masala recipe.

Img masala paneer2

In this restaurant style Paneer Masala recipe, I added fennel seeds, red and slightly sweet tomatoes and little honey to give nice sweetish taste and aroma. I cooked Paneer in onion, tomato gravy infused with the aroma of fenugreek leaves. At the end, added cream to give it nice smooth texture. When all of this come together it tastes, just like heaven!

I prefer to keep the gravy thick. You can adjust it based on your preference. I like to serve this flavorful creamy Paneer Masala with Naan, Paratha or Puri.

Watch my easy to follow step by step instructional video recipe for more details:

Paneer Masala Video Recipe

If you are looking for more gravy recipes here are some links rajma masala, aloo gobi, spinach mushroom gravy, chana masala.

Paneer Masala Detailed Recipe Card

Masala Paneer
  • Chopped onion: 1 ¼ cup,
  • Chopped tomatoes: 1 ½ cup,
  • Paneer- diced in cubes: 200 gms,
  • Crushed ginger: 1 tbs,
  • Crushed garlic: 1 tbs,
  • Dry fenugreek leaves (Kasoori Methi): 2 tbs,
  • Fresh cream: ½ cup,
  • Honey: 1 tsp,
  • Turmeric powder (Haldi powder): 1 tsp,
  • Cumin powder (Jeera powder): 1 tsp,
  • Coriander powder (Dhania powder): 2 tsp,
  • Red Chilly powder (lal mirch powder): 1 tsp,
  • Salt- to taste,
  • Bay leaf (tez patta): 1,
  • Cinnamon stick (dalchini): 1 piece,
  • Green Cardamom (choti elaychi): 2,
  • Fennel Seeds (Saunf): ½ tsp,
  • Black pepper corns (kali mirch): 15-20,
  • Cloves (Laung): 2,
  • Oil for cooking
  1. Heat the pan with oil and deep fry paneer pieces till they become light brown in color.
  2. Take them out in a bowl of warm water and keep them aside.
  3. In another pan heat little oil; add bay leaf, cinnamon stick, green cardamom, pepper corns, cloves and fennel seeds.
  4. Fry them for few seconds and add garlic and ginger. Sauté for some more time.
  5. Add onion and cook it until onion becomes soft and change its color. It might take 7-8 minutes for the onions to become soft.
  6. After that add rest of the spices. Sauté for few seconds and add chopped tomatoes.
  7. Cook for another 7-8 minutes. In between add salt to it and stir it occasionally.
  8. After 8 minutes switch off the heat and let the mixture cool down for some time.
  9. Blend the mixture into the paste, use warm water if mixture is too thick to blend.
  10. Transfer the mixture again into the pan and cook for some time. Now add ½ cup of water and mix everything well in the pan.
  11. Cover the mixture, slow down the heat to low and cook it for 20 minutes. Stir it occasionally.
  12. After about 20 minutes, add fenugreek leaves and mix well.
  13. Add honey and paneer to it. Stir and cook for 5 more minutes.
  14. Switch off the heat and add cream to the gravy. Mix well.
  15. Yummy Paneer Masala is ready. Enjoy it with Chapati, Naan Paratha.
1. If you think gravy is to thick feel free to add some water before adding the paneer.
2. Instead of frying the paneer you can just boil in water for 7-8 minutes and sieve it.
3. Put cream in the gravy only after switching of the heat otherwise cream will curdle.

7 thoughts on “Paneer Masala | How to Make Paneer Masala Restaurant Style”

  1. Dear Shilpi, It was hubb’s b’day

    i tried your Dum Aloo recipe.It was super tasty and full of aroma .I and my hubby liked it v much. Thanks.

    1. Sunita,
      Really glad to know that you and your hubby loved it. Wish your Hubby belated Happy Birthday :) on my behalf.
      Do stay in touch for more.

      Shilpi Amit

  2. Liked your way of teaching the tutorial . very simple and clear. all the best for your future. i have tried your recipes , came out very well Thank you.

    1. Thanks a bunch Roopa. Glad that you like my recipes and presentation. Keep visiting and stay in touch.

  3. Hi Shilpi
    I love your recipes and you tell them in such a simple way. I only wish you didn’t have your nailpaint on in your videos. Clean nails look healthy and are hygenic while cooking. Think over it.
    Thanks for awesome recipes.

  4. i had so much fun watching your video and cooking at the same time the paneer masala dish. made naan too from your site. a big thumbs up to u girl! it turned out super awesome :) mu hubby was leaking his fingers lol.

    thanks again

    1. Hi Payal, Thanks for trying my recipes and I am so happy that you liked them. Keep in touch and stay connected for more quick and easy recipes.

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