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Paneer makhani is the vegetarian counterpart of butter chicken, with paneer in a velvety tomato-butter sauce. Rich in protein, this vegetarian comfort food is an absolute family favorite.
Heat 2 tbsp butter in a heavy skillet over medium heat until melted but not browned. Add chopped onion and sauté for 5–7 minutes until soft and lightly golden.
Stir in minced garlic and ginger; cook for 1 minute until aromatic. Add cashews and sauté for 2 minutes to enhance their flavor and creaminess.
Pour in tomato puree, coriander powder, cumin powder, red chili powder, garam masala, and salt. Simmer, stirring occasionally, on medium-low heat for 10 minutes until the sauce thickens and oil begins to separate.
Carefully blend the mixture until very smooth using an immersion blender or countertop blender. Return to pan, add remaining 1 tbsp butter, kasuri methi, and sugar. Simmer on low heat for another 5 minutes.
Stir in heavy cream and gently fold in the paneer cubes. Simmer for another 3–5 minutes on low heat, stirring gently, so the paneer stays tender and the sauce is silky. Serve hot.
