Paneer butter masala is a creamy, tomato-based vegetarian curry with soft paneer cubes in a luscious sauce. This high protein vegetarian dish is a beloved family favorite across India.
Heat 1 tablespoon of butter in a large skillet over medium heat. Add chopped onions, sauté until soft and translucent, about 5 minutes.
Add garlic and ginger, cooking for 1 minute until fragrant. Add tomatoes and cashews; continue to cook over medium heat for 8-10 minutes until tomatoes are soft and mixture thickens.
Remove the mixture from the heat and let it cool slightly. Transfer to a blender and blend until completely smooth and creamy.
Return the blended mixture to the pan. Stir in remaining butter, garam masala, coriander, chili powder, turmeric, salt, and sugar. Cook over medium-low heat for 5 minutes, stirring often.
Add cream and cubed paneer. Simmer gently on low heat for 7–8 minutes, stirring carefully to avoid breaking the paneer. Sprinkle kasuri methi, stir once, and cook another minute. Serve hot.