Paneer Makhanwala Restaurant Style

Paneer Makhanwala Restaurant Style

Paneer makhanwala recipe. Cottage cheese in a buttery, creamy, tangy and little sweet sauce. This yummy paneer makhanwala recipe has a restaurant like flavor and taste.
The recipe is a type of Paneer Butter Masala, Paneer Lababdar, and Paneer Makhani. Primarily makhani gravy is added in all of these recipes. So, some people say that paneer makhani and paneer makhanwala are the same recipe and some say that paneer makhani and paneer buter masala are the same. All this confusion is due to a similar gravy and butter (makhan) which is used in the preparation of these recipes.
I will not go into this discussion because in the end what counts is the taste. Basically all of these makhani recipes taste awesome. usually makhani sauce does not have onions. However, in this recipe I added onion with whole spices. If you love the creamy taste of butter in a paneer dish, you’ll love this recipe.


For the ground Makhani paste

▢ 1 medium to large onion or 80 grams of onions or ¾ cup of coarsely chopped onions
▢ 3 to 4 medium tomatoes or 160 to 170 grams of tomatoes or 1.5 cups of coarsely chopped tomatoes
▢ ½ inch ginger – chopped
▢ 3 to 4 medium chopped garlic
▢ 2 single strands of mace
▢ 2 to 3 green cardamoms
▢ 1 inch of cinnamon
▢ 2 to 3 cloves
▢ 2 tablespoons of whole cashews or about 10 to 12 cashews
▢ 1 cup of water
Also Read: Ladies Finger Curry | Vegan Bhindi Curry

Other ingredients

▢ 250-300 grams Paneer – cut into cubes or squares (cottage cheese)
▢ 1 to 1.5 teaspoon Kashmiri red chili powder or Deghi mirch (if using a hot variety of red chili powder, add ½ to ¾ teaspoon)
▢ ¼ cup light cream (I used amul cream)
▢ 1 tej patta (Indian bay leaf)
▢ 1 green pepper – sliced
▢ 1.5 cups of water or as needed
▢ ¾ teaspoon kasuri methi – crushed (dried fenugreek leaves)
▢ ¼ teaspoon garam masala powder
▢ ½ teaspoon of sugar or 1 teaspoon of honey – or add as needed to taste
▢ 2 to 2.5 tablespoons of butter at room temperature
▢ 1 tablespoon of cream for the garnish
▢ 1 tablespoon grated paneer for garnish (optional)
▢ ½ inch ginger – julienne
▢ salt as needed
▢ a few chopped coriander leaves for garnish (cilantro leaves)


Make Makhani paste

  1. Firstly, combine the chopped onions, tomatoes, cashews, garlic, ginger, mace, cinnamon, cloves and cardamoms with 1 cup of water.
  2. Cook everything until the tomatoes and onions soften without a lid. Cook for about 14 to 15 minutes over medium heat. Let this mixture cool.
  3. Then add everything, including the broth, to a good blender or grinder. Grind into a smooth paste.
  4. Remember that there shouldn’t be any small pieces of cashews. Everything should be very well ground until smooth.

Make Paneer Makhanwala

  1. Heat the butter in the same pan. Add the tejpatta (Indian bay leaf) and brown for a few seconds. Add the ground makhani paste. Mix well.
  2. Sprinkle with red chili powder. (I used Kashmiri red chili powder which gives a good color. You can also use deghi mirch). Mix well and brown the masala over medium heat.
  3. Keep stirring often. You have to sauté the masala until you see the butter leaving the sides. It takes time, but patience is main.
  4. Takes about 20 to 22 minutes on medium to high heat. Check for consistency of how the masala paste should be before moving on to the next step.
  5. Now add the sliced green peppers, salt and water. Again, stir very well. Cook 2 to 3 min.
  6. Then add the sugar and stir again. Add the paneer cubes and simmer for 2 min.
  7. Add the cream, the crushed kasuri methi (dried fenugreek leaves) and the garam masala powder.
  8. Stir and turn off the heat. Check the taste of the sauce and add more salt, sugar or red chili powder as needed.
  9. Serve the paneer makhanwala hot garnished with cilantro leaves, cream and grated paneer with naan or roti.