Paneer Butter Masala, a favorite at Indian restaurants, made in the Instant Pot or a traditional Pressure Cooker. This dish is also popularly known as Paneer Makhani.
Paneer Butter Masala has chunks of paneer or cottage cheese cooked in a mildly spiced onion tomato gravy. It is so smooth and creamy that you will not want to stop eating it. My daughter is a very very picky eater and has repeatedly requested this paneer dish, so I can attest that it is very kid friendly.
How to make Instant Pot Paneer Butter Masala? – A different preparation
The preparation for this paneer butter masala is very different than the usual onion-tomato gravy. Usually to make gravy, we first sauté onions and then sauté tomatoes. However this one is done in a completely different way.
Add all the ingredients, except paneer, cream and honey in the instant pot and pressure cook for 8 minutes. You don’t need to finely chop the onions and tomatoes, as we are going to blend them later. This is also the reason, I suggest to add the whole spices in a pouch made from thin cheesecloth or a spice bag. This helps to get the flavor, but you can also remove it before blending.
Then blend the cooked ingredients using an immersion blender or in a regular blender. I used my immersion blender, which I could use directly in the pot. If using a regular blender, you would have to pour the contents into the blender and may need to let them cool before blending. Then pour them back to the instant pot after blending. The gravy is now ready. Add cream, honey and paneer chunks. Stir and let the curry rest for 5 minutes.
Paneer butter masala is ready. Garnish with some kasoori methi or cilantro and enjoy with naan, roti or rice.
Isn’t it a lovely color? And the most easy dish to prepare? This is my go to dish when I have not done much preparation…and oh, perfect to serve if you have guests coming over.
Love this gravy? Make it a dip with naan and serve it as an appetizer. This used to be a complimentary appetizer served at an Indian restaurant I frequently visited in Chicago.
This gravy also freezes well. Prepare in advance and freeze. Then when needed, defrost, give a boil and add chunks of paneer. And why only paneer, you can add green peas & paneer to make matar paneer or add green peas & sliced mushrooms to make mushroom matar. See notes for variations.
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Chunks of paneer or cottage cheese cooked in a mildly spiced tomato gravy. Delicious and very easy to make in the instant pot.
- 1 lb Paneer or Cottage cheese chunks
- 2 tbsp Butter
- 1 Green chili pepper (optional)
- 1 tsp Cumin seeds (Jeera)
- 1 Onion cut in large pieces
- 1 tbsp Ginger minced
- 1 tbsp Garlic minced
- 4 Tomato cut in large pieces
- 1/4 cup Cashews
- 2 tbsp Fenugreek leaves (Kasoori Methi)
- 1/4 cup Water
- 1/4 cup Cream heavy whipping or coconut cream
- 1 tbsp Honey
- 1 tsp Salt adjust to taste
- 1/2 tsp Ground Turmeric (Haldi powder)
- 1 tsp Coriander powder (Dhaniya powder)
- 1/2 tsp Ground Cumin (Jeera powder) or Garam Masala
- 1 tsp Cayenne or Red Chili powder adjust to taste
- 2 sticks Cinnamon (Dalchini)
- 5 Green Cardamom (Elaichi)
- 2 Black Cardamom (Moti Elaichi)
- 1 tsp Black Peppercorns
- 1 tsp Cloves (Laung)
- Make a spice pouch by adding the whole spices to a cheesecloth. Tie it such that the spices cannot come out of it.
Except paneer, cream and honey, add all ingredients and spice pouch to the Instant Pot including the spices. Close lid with vent in sealing position.
Set the instant pot to manual or pressure cook mode for 8 minutes.
- After the instant pot beeps, release the pressure naturally.
Remove the spice pouch carefully. Blend the contents in the instant pot with an immersion blender or regular blender to a smooth paste. If using regular blender, you may need to cool the ingredients before blending. Get the contents back to the instant pot.
Add the cream and honey. Stir into the sauce.
Add paneer chunks. Stir them into the sauce and let it rest for 5 minutes. You can cover with a glass lid.
Paneer Butter Masala is ready to be served. Garnish with dry fenugreek leaves or cilantro.
Recipe Video
- This gravy freezes well. Skip adding the paneer and keep this sauce handy to prepare this or other curries.
- Variations:
- Matar Paneer / Mushroom Matar / Roasted Cauliflower - You can also add different veggies to this sauce and make delicious curries. All of the veggies can be added after making the sauce. Simmer for 3-4 minutes on saute mode to cook the veggies.
- Butter Chicken or Murgh Makhani - You can also cook butter chicken with this recipe. Add chicken thigh pieces on top of the other ingredients before pressure cooking. Cook for 10 minutes at high pressure. Remove chicken and cut into 2-3 inch size pieces. Add back to the sauce. Voila, butter chicken is ready! (Update: Butter Chicken Recipe here)
- Love this gravy? Make it a dip with naan and serve it as an appetizer.
- Vegan: To make this curry vegan, replace cream with coconut cream and paneer with tofu or vegetables.
- Make it a meal: Cook white basmati rice pot-in-pot (PIP) when pressure cooking the curry. Check measurements here.
- Inspired by recipe from thegirlthatmadeitall.
Note: Nutrition values are my best estimates. If you rely on them for your diet, use your preferred nutrition calculator.
If you make this curry, leave a comment, share your creation on our facebook page or on instagram with #pipingpotcurry.
Check out other Instant Pot Curries you might enjoy:
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Hey Meeta! I tried your paneer butter masala recipe and loved how easy it is. I need to prepare 3 curries for a party at my home and one is definitely going to this one. Can you point me to any other recipe to your blog which is as simple as this one? As in just throw in instant pot and done kind of?
Hey RS – Glad to hear you enjoyed the Paneer Makhani.
Saag and Pav Bhaji are great options. However I understand pav bhaji might not work as you will be having roti/naan along with the curries. Saag can be made with lightly sautéed tofu, or corn, to have a different option than paneer.
Rajma, Chole or Dal Makhani are options for lentils/beans that go well with rice. I like to make peas pulao for a party as it looks good with the little green in it.
You can make the curries the day before. Just add the paneer for the makhani on the day. Hope that helps. Let me know if you have any questions.
I made this last night and it was really tasty! Things I would do next time – add more tomatoes – this was my fault, I only had two at home (four were needed in your recipe) but I made it anyway. I would also use my Vitamix to blend it next time instead of the hand blender, I think the sauce will be smoother. Lastly, I’m going to pan fry the paneer lightly so they will hold up a bit more in the sauce. So so yummy, thanks!
thank you for sharing this recipe, Meeta. It tasted even better the next day with all the spices soaked in. My kids said I should try chick with same recipe and guess what I just checked your recipe again and you’ve already mentioned the same 🙂
Hey Radha – Thank you for sharing back your experience. I am always so happy when kids enjoy the recipes :-). I have also posted Butter Chicken recipe with similar gravy here – https://pipingpotcurry.com/butter-chicken-instant-pot/
Great recipe… since I moved to India I do the same in pressure cooker and turns out awesome…shared the recipe with my sister.. she loved it…
Hi Meeta, quick question. Don’t we need to cook the paneer with the sauce once paneer is added? Please clarify. I’m planning to make this for a dinner party tomorrow. I would like to prepare the sauce today and was just planning to cook it tomorrow along with the paneer. Any other ideas?
Hey Pari – Sorry I am late in replying before the party. The paneer does not need much cooking, hence I just add it to the sauce and let it rest in the sauce to soak the flavors. Hope it turned out well. Would love to know. Thanks!
Yes, it turned out great, everyone loved it 🙂 Thank you!!!!
Hey Pari – So happy to hear. Thank you for sharing back your review!
Absolutely loved the recipe. Easy, fast and super delicious.
Hey Khyati – Very happy to hear you enjoyed the recipe. Thanks for sharing back your review!
Hi Meeta,
I really love your blog and recipes! Especially this paneer recipe.
I keep coming back to your website because your recipes are simply the best.
There are a lot of blogs with indian recipes out there using the IP but yours are tried and true.
As a fellow indian mom who loves to cook, I tell everyone about your blog, how easy it is to follow the directions.
Love the new recipes you have posted and can’t wait to try the Usal and egg curry.
Thank you so much for the kind words. It really helps me to keep going and share more recipes. I very much appreciate that you are sharing the blog with others as well.
I would love to hear how the new recipes turn out. Thanks 🙂
Hi Meeta – great blog ! Are you by any chance Meeta Thomas ? My long lost friend in Delhi when I was in first grade ? Anyway, I stumbled over your blog looking for Kala Chana Curry and found a treasure trove of new stuff to try. Thanks !
Hello – I am Meeta Arora. Sorry not the person you are looking for, but glad you found my blog and are excited to check out the recipes. Would love to hear if you try them 🙂
Hi Meeta! I was wondering if you tried doubling, tripling or quadrupling the sauce in this recipe? I was thinking it would make a great sauce to stock up on in the freezer for quick dinners. Of course it would take longer to come to pressure but do any of the spices or cook time need to be adjusted? Have you tried this? Thanks! :0)
Hello Ben – Totally agree that this is a great sauce to stock up on, and I have tried freezing it. I have doubled the recipe, but have not tried more than that. Go with how much you can fit unto 3/4 full in the ip. The same cook time will work even if the quantity is increased. Feel free to adjust spices to your taste. Hope that helps and thank you for sharing your review!