Instant Pot Paneer Butter Masala (Makhani)

Paneer Butter Masala made in the pressure cooker-The easiest, most satisfying, better than restaurant, Paneer Makhani made with simple ingredients. Your guests wont be able to stop eating it!

TASTE: The gravy is buttery and delicious and flavorful from the tomatoes, cardamom & cinnamon
TEXTURE: Smooth & silky.
EASE: Very Easy!
APPEARANCE: It's usually orange in color.
PROS: A great Indian vegetarian dish, if you’re hosting friends or family.It also makes for an indulgent weeknight dinner when you dont want simple dal and chawal
Diet : Vegetarian, Keto. Can be easily made Vegan & Dairy Free.

A gorgeous orange mild indian curry with paneer, tomatoes, cashews and cream. Paneer butter masala is also called paneer makhani in india.

It's a mild curry that's gets its taste from tomatoes and spices like cardamom and cinnamon. The gravy is thick, smooth and silky.

You get paneer butter masala in most indian restaurants. It is a goto dish for vegetarians and vegan folks.It's usually served with butter garlic naans but goes wonderfully with rice too.

Speaking of paneer, you must try my CREAMY Instant Pot Palak Paneer & Instant Pot Matar Paneer too!

Instant-Pot paneer butter masala is a shortcut way of making this famous preparation. Here is what we will do

• Pressure cook the onions, tomatoes, cashews and spices
• Puree it to make gravy
• Add paneer and drizzle Cream

This curry can be made in the instant pot ,regular pressure cooker or stove top.

Jump to:

• Why we love Instant Pot Paneer Butter Masala
• What is Paneer
• Ingredients for Paneer Butter Masala
• How to make Paneer Butter Masala in Instant Pot
• Important Recipe Notes
• Serving
• Storing ,Refrigerating & Freezing
• Possible Variations
• Vegan Paneer Butter Masala
• More Indian Recipes
• Follow me on Social
• Instant Pot Paneer Butter Masala
• Ingredients 1x2x3x
• Instructions
• Notes
• Frequently Asked Questions

Why we love Instant Pot Paneer Butter Masala

Here is why we make this paneer butter masala again and again!

• It goes well with rice & flatbreads like rotis and naans
• It's family friendly- from kids to grandparents, everyone loves this one!
• Super easy to make with no sauteing or browning
• The gravy freezes beautifully!
• This is basically the recipe of the "Butter Masala" or the "Makhani Sauce".You can choose to change paneer to tofu or cooked mushrooms or cauliflower.

Vegetable side dish which is great for everyday lunch or dinner and also when you are entertaining.

If you follow the recipe to the T, you will find an almost restaurant quality dish at your table. That said, it is also a recipe that can be highly customized.

What is Paneer

Paneer is basically a type of Indian cheese. It is firm and holds its shape when heated.

If you can't find paneer, a Good alternatives for paneer is firm Tofu which will make this dish vegan too. Here are more than 10 great alternatives for paneer.

You can also use the same sauce to make mushroom, corn or any other vegetable too.

How to make Homemade Paneer

To get about 250 gms or ½ pound of paneer, Heat 1.5 litres or 1 Gallon of Milk and bring it to boil.

Add 3 tablespoon Lime juice or vinegar.Give it a mix and reduce the heat to low.You will see milk curdling.The milk solids will separate from the whey.

Line a strainer with a cloth.Strain the curds and gently squeeze the whey out of it.You have cottage cheese.At this stage, it will be soft.

To make it firm, wrap it in the same cloth used for straining. Place it over a sieve. Place a weight on top of the strained curds and let it stand for 2-3 hours. After 2 -3 hours, you will get firm panner, which you can cut into pieces.

Ingredients for Paneer Butter Masala

Here is what you need to make paneer makhani

• Paneer
• Onion
• Tomato
• Cashews
• Sugar
• Ketchup
• Spices

This curry gets its taste from tomatoes and the spices. It's a long list but I promise you, you will have most of them in your pantry( atleast in some form!).Though don't worry, I will give you swaps of these below.

Here are the spices you will need-

• Cinnamon
• Cardamom
• Dried Chilies
• Peppercorn
• Bay leaf
• Poppy seeds

Paneer

You can get paneer quite easily in indian stores. It stays well in the refrigerator for about 5-6 days.You also get frozen paneer that can be stored for 2-3 months in the freezer.

I have a trick to make my paneer soft.Except for northern parts of india, most paneer is usually older than a couple of days and can be hard.

• To make my paneer live it's best life, I always store it in a water bath with a teaspoon of vinegar in the refrigerator.
• When I want to use the paneer, I soak it in warm water with a teaspoon of vinegar to make it soft and fresh.

If you can't find paneer, then look at my paneer substitute article. You will be surprised how some local cheese are actually very close cousins of paneer!

Tomatoes

I have used fresh tomatoes. In india, fresh tomatoes are available around the year.

If you don't have fresh tomatoes, you can use the equal amount of canned diced tomatoes instead.

Another great alternative is Tomato Puree or passata( not tomato paste!!) You can use about ¼ the amount of tomato puree instead of fresh tomatoes. That's About 150 gms of tomato puree.

Spices used to make makhani gravy

Kashmiri Chilies give this makhani gravy it's orange color. I have used whole chilies here but you can also use powdered Kashmiri chili instead.

Other alternatives of local chilies that are used for color are

• Paprika
• Bydegi Chili

Other Spices that give it depth are- Cardamom, Bay leaf and Cinnamon. Try using all the spices but if you don't have one or two of them, feel free to omit them.

You can use ground cardamom & cinnamon too. Just use ¼ teaspoon of ground spices instead. So that's ¼ teaspoon of cinnamon and cardamom powder each.

You can also omit all the other spices and use Garam Masala instead.The taste will not be the same BUT it will still be good!

How to make Paneer Butter Masala in Instant Pot

Step 1: Prep

In this step, simply gather all the ingredients.

Cut up the tomatoes and onions.

Step 2:Pressure Cook

Add the Tomatoes,Onions,Cashews,Ginger & Garlic to the inner pot.

Add ½ cup of water along with the spices- Kashmiri Chillies, Cardamom, turmeric, peppercorn, bay leaf, cinnamon & Poppy Seeds.

The fresh tomatoes will release a lot of water while pressure cooking and i promise you wont see the burn message.

Close the lid and select PRESSURE COOK or MANUAL for 5 minutes.The instant pot will take 12-15 minutes to come up to pressure.

Quick Release after 5 minutes of cooking time is over.

Step 3: Puree

Blend it into a smooth puree.

You can use a stick blender or a blender blender. Though stick blender is convenient and you don't have to wait for it to cool, some don't puree the gravy properly enough.

Blending is in the jar blender is extra work but trust me, it will blend the tomatoes, cashews, onions and spices into a smooth lump free gravy. Though do remember to wait for the pressure cooked onions and tomatoes to cool a bit before you blend it.

Add Honey(or Sugar),Butter and Ketchup. Finally add the paneer that you have cut up.

Drizzle Cream on top.Add some kasoori methi and done!

Your homemade paneer butter masala made in the instant pot is ready to be devourvered.

Note- To make paneer butter masala on stove top, use a big pot to boil the ingredients instead of pressure cooking them. You can also use a traditional pressure cooker and give 2-3 whistles instead.

Important Recipe Notes

• Thickeners - Cashew & Poppy seeds are the thickeners in this makhani gravy. They give the gravy a silky smooth feel. If you cant get hold of poppy seeds, increase the cashews to ½ cup instead.
• Remove the big spices like cinnamon & Bay leaf before pureeing the gravy
• For the smoothest gravy, use a blender instead of a stick blender. You will have to wait for the gravy to cool down though.
• Keep the gravy and paneer separate till you are ready to serve. This is to increase the life of the gravy and to be able to use it in other ways too.
• Blending - Let the gravy cool a bit before you blend it in a blender. You could use a stick blender but it tends to leave the gravy a bit gritty. To get the silky smooth texture, you will have to blend it in blender.

Serving

Paneer butter masala goes the best with fresh naans. Though naans are not a regular indian home food. Instead of naans, parathas and rotis are what most indian folks eat at home.

I also love this with a steaming hot Vegetable pulav with a side of a simple raita- yogurt with spices.

This is definitely the dish to make when you are entertaining. Especially if the guests are vegan or vegetarian.

Storing ,Refrigerating & Freezing

Paneer butter masala will last till the paneer is okay. So definitely check the expiry date on the package before throwing it away.

On the counter, it will last for 7-8 hours at a room temperature less than 25C or 80F.Beyond that, the paneer can turn rancid like any dairy product.

I usually add the paneer at the end when I am ready to serve. If I have not mixed the paneer in the gravy, I keep the two separate.

The gravy can be made ahead and refrigerated for up to 9-10 days. You can also freeze the gravy for a quick mid week indulgent dinner.

Possible Variations

Mushroom Butter Masala - Add about 3 cups of sliced mushrooms in the cooked pureed gravy. Give it a boil so that the mushrooms get cooked and you are done!

Mixed vegetable Butter Masala - I often use frozen veggies to make a vegetable makhani in a jiffy. Just boil the veggies in the curry till cooked and finish with kasoori methi.

Healthy Paneer Butter Masala - To make this dish healthier, skip the butter! Yes! OR just use lesser. That's it! You can also add vegetables like zucchini in the gravy while pressure cooking it. No one will know!!

Butter Chicken - Butter chicken or murg makhani is a variation of paneer butter masala.You can find the detailed recipe of instant pot or pressure cooker butter chicken here

Vegan Paneer Butter Masala

Paneer butter masala can be easily made vegan. The swaps are very simple and the curry will be very very close to the original dairy heavy version. Here is what you need to do

• Swap Paneer for firm Tofu
• Use Vegetable oil or vegan butter instead of Dairy butter. You can also omit this completely.
• Skip using the cream to finish the curry or use Cashew cream

More Indian Recipes

Here are some recipes that can be served with the Paneer butter masala

Basmati Rice in Instant Pot
Instant Pot Pulao- Rice Pilaf

And there are some more curries and dals to make along with the paneer makhni

Instant Pot Dal Makhani
Instant Pot Butter Chicken
Instant Pot Dal Tadka
Instant Pot Matar Paneer
Instant Pot Aloo Tamatar

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Frequently Asked Questions