Paneer Masala is a simple, flavorful curry of paneer cubes simmered in a robust onion‑and‑tomato gravy. It pairs beautifully with Indian breads like naan or roti, and also goes well with jeera rice. Follow this easy recipe for a restaurant-style dhaba version at home.

About Paneer Masala
Paneer Masala is a North Indian curry where fried paneer pieces finish cooking in a spicy, onion‑tomato based gravy. The sauce is rich, aromatic and slightly tangy from the tomatoes, with warm notes from whole spices. It works well with almost any Indian bread — paratha, naan or simple phulka — and is equally delicious with mildly spiced pulao or plain steamed rice.
This dish is ideal for weekday meals as well as special occasions such as family dinners, parties and festivals. It’s straightforward to scale for larger groups and can be adapted easily to dietary needs (see notes).
Ingredients
Paneer (Indian Cottage Cheese)
Use homemade paneer or store‑bought blocks. Homemade paneer is naturally soft. If your store paneer is firm, soak it in warm water for 8–10 minutes before using to soften it.
To Marinate The Paneer
Marinating paneer briefly with a few spices improves its flavor before frying.
For The Curry
Fats: Use oil and/or ghee; butter also works. You can choose neutral oil, mustard oil or olive oil depending on preference.
Whole spices: Cardamom, cloves, black peppercorns, cinnamon, dry red chilies and cumin seeds add depth.
Ground spices: Coriander powder, turmeric, Kashmiri red chili powder, roasted cumin powder and garam masala are used for seasoning.
Besan (gram flour): Adds body and a lovely nutty flavor to the gravy.
Base: Onions, tomatoes and ginger‑garlic paste form the base. Grating tomatoes gives a smooth texture; you may also pulse them briefly in a blender.
Kasuri methi: Dried fenugreek leaves are optional but impart a classic dhaba aroma.
Other: Asafoetida (hing), green chilies, lime juice and fresh cilantro for finishing.
How To Make Paneer Masala
Marinate The Paneer
Step 1: Rinse 14 oz (400 g) paneer and cut into 1‑inch cubes.
Tip: If using store paneer, soak in warm water for 8–10 minutes to soften, then drain gently.
In a bowl, toss the paneer with:
- ½ teaspoon salt
- ½ teaspoon Kashmiri red chili powder
- ½ teaspoon turmeric powder
Let it rest for about 15 minutes.


Fry The Paneer
Step 2: Heat 2 tablespoons oil in a pan over medium‑high heat.

Step 3: Arrange paneer pieces in a single layer and fry until golden on all sides. Fry in batches if needed to avoid overcrowding.

Step 4: Remove the fried paneer and set aside.

Make The Curry
Step 5: In the same pan, add 2 tablespoons oil and 2 tablespoons ghee. Heat over medium‑high.

Step 6: When hot, add whole spices and asafoetida and fry briefly (5–6 seconds):
- 2 crushed green cardamoms
- 2–3 crushed cloves
- 5–6 crushed black peppercorns
- 1‑inch piece cinnamon, crushed
- 3–4 whole dry red chilies
- 1 teaspoon cumin seeds
- ¼ teaspoon asafoetida

Step 7: Add 1 cup finely chopped onions and sauté until lightly brown, about 6–8 minutes.

Step 8: Add 2 teaspoons ginger‑garlic paste and cook until the onions are well browned, another 6–8 minutes.

Step 9: Add the ground spices and besan and fry briefly (10–12 seconds):
- 2 teaspoons coriander powder
- ½ teaspoon turmeric
- 2 teaspoons Kashmiri red chili powder
- ½ teaspoon cumin powder
- ½ teaspoon garam masala
- 2 tablespoons roasted besan
- 1 teaspoon salt (or to taste)

Step 10: Add 1 cup grated tomatoes and 2–3 slit green chilies. Cook, stirring frequently, until the oil separates from the edges of the pan, about 3–4 minutes.

Step 11: Add 1 cup water, the fried paneer pieces and 2 tablespoons crushed kasuri methi. Mix gently and simmer for 2–3 minutes, stirring occasionally.

Step 12: Stir in 1 tablespoon freshly squeezed lime juice and 2 tablespoons chopped cilantro. Adjust salt to taste.

Step 13: Serve hot with roti, naan or rice.

Pro Tips
Choose the best quality paneer you can find. If it seems firm, soften it with warm water before use.
For a silky gravy, grind the cooked onion‑tomato masala into a smooth paste and then return it to the pan. Add paneer at the end to keep the cubes intact.
To introduce a pleasant smoky note, place a small steel bowl inside the pan, put a piece of hot charcoal in the bowl, drizzle a little ghee over it, cover immediately and let the smoke infuse the curry for 8–10 minutes.
For a richer finish, stir in a splash of unsweetened heavy cream or a tablespoon of cashew paste just before serving.
Frequently Asked Questions
Replace ghee or butter with oil and swap paneer for firm tofu. The rest of the ingredients are plant‑based.
Skip asafoetida (hing) or use a gluten‑free brand. Besan (gram flour) is naturally gluten free, so the recipe works well for a gluten‑free diet.
No. Paneer Masala is a straightforward, spicy onion‑tomato curry. Paneer Tikka Masala uses grilled or roasted paneer with a smoky flavor, while Paneer Butter Masala is richer and creamier with more butter and cream in the sauce.
Serving Suggestions
Serve Paneer Masala with roti, phulka, paratha, naan or tandoori roti. It also pairs nicely with steamed white rice, jeera rice or a lightly spiced pulao. Garnish with sliced onions, lemon wedges and papad on the side for a complete meal.
Storage Suggestions
Store Paneer Masala in an airtight container in the refrigerator for 3–4 days. Reheat gently on the stove or in the microwave. If the curry thickens after refrigeration, add a splash of water and stir while reheating.
To freeze, omit the paneer and freeze the gravy in an airtight container for up to 2 months. Thaw overnight in the refrigerator, reheat and add freshly fried paneer before serving.

Paneer Masala Recipe
Ingredients
For Marinating Paneer
- 14 ounces (400 g) paneer, cut into 1‑inch pieces
- ½ teaspoon salt
- ½ teaspoon Kashmiri red chili powder
- ½ teaspoon turmeric powder
- 2 tablespoons oil (for frying)
For The Gravy
- 2 tablespoons oil
- 2 tablespoons ghee
- 2 green cardamoms, crushed
- 2–3 cloves, crushed
- 5–6 black peppercorns, crushed
- 1 inch cinnamon piece, crushed
- 3–4 whole dry red chilies
- 1 teaspoon cumin seeds
- ¼ teaspoon asafoetida (optional)
- 1 cup finely chopped onions
- 2 teaspoons ginger‑garlic paste
- 2 teaspoons coriander powder
- ½ teaspoon turmeric powder
- 2 teaspoons Kashmiri red chili powder
- ½ teaspoon cumin powder
- ½ teaspoon garam masala
- 2 tablespoons roasted besan (gram flour)
- 1 teaspoon salt (or to taste)
- 1 cup grated tomatoes
- 2–3 green chilies, slit
- 2 tablespoons crushed kasuri methi
- 1 tablespoon lime juice
- 2 tablespoons chopped cilantro
Instructions
- Rinse and cut paneer into 1‑inch cubes. Toss with salt, chili powder and turmeric and let rest 15 minutes.
- Heat oil in a pan and fry paneer pieces in a single layer until golden on all sides. Remove and set aside.
- In the same pan, add oil and ghee. When hot, add whole spices and asafoetida; fry briefly.
- Add onions and cook until lightly brown. Add ginger‑garlic paste and cook until well caramelized.
- Add ground spices and roasted besan; fry for a few seconds. Add grated tomatoes and green chilies, cook until oil separates.
- Add water, fried paneer and crushed kasuri methi. Simmer 2–3 minutes.
- Finish with lime juice and chopped cilantro. Adjust salt and serve hot.
Notes
If the gravy needs to be silkier, blend the cooked onion‑tomato mixture to a fine paste and return to the pan before adding paneer. For extra richness, stir in a little fresh cream or cashew paste just before serving. To add a smoky flavor, use the charcoal smoking method described above in the Pro Tips.
Nutrition (approx.)
Per serving: Calories 542; Carbohydrates 18 g; Protein 16 g; Fat 47 g. Values are approximate and will vary by ingredients used.