Paneer Butter Masala – Instant Pot Pressure Cooker

Paneer Butter Masala Instant Pot Pressure Cooker

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.

Paneer Butter Masala Instant Pot Pressure Cooker

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.

Paneer Butter Masala Instant Pot Pressure Cooker

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.

A quick video to prepare Instant Pot Paneer Butter Masala
5 from 7 votes
Paneer Butter Masala Instant Pot Pressure Cooker
Paneer Butter Masala - Instant Pot Pressure Cooker
Prep Time
5 mins
Cook Time
25 mins
Total Time
30 mins

Chunks of paneer or cottage cheese cooked in a mildly spiced tomato gravy. Delicious and very easy to make in the instant pot. 

Course: Main Course
Cuisine: North Indian
Servings: 4
Calories: 302 kcal
Author: Piping Pot Curry
  1. Make a spice pouch by adding the whole spices to a cheesecloth. Tie it such that the spices cannot come out of it.
  2. 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. 

  3. Set the instant pot to manual or pressure cook mode for 8 minutes.

  4. After the instant pot beeps, release the pressure naturally.
  5. 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. 

  6. Add the cream and honey. Stir into the sauce. 

  7. Add paneer chunks. Stir them into the sauce and let it rest for 5 minutes. You can cover with a glass lid. 

  8. Paneer Butter Masala is ready to be served. Garnish with dry fenugreek leaves or cilantro.

Recipe Notes
  • 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!  
    • 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
Nutrition Facts
Paneer Butter Masala - Instant Pot Pressure Cooker
Amount Per Serving (331 g)
Calories 302 Calories from Fat 149
% Daily Value*
Total Fat 16.57g 25%
Saturated Fat 6.987g 35%
Cholesterol 37mg 12%
Sodium 1041mg 43%
Potassium 655mg 19%
Total Carbohydrates 24.69g 8%
Dietary Fiber 4.5g 18%
Sugars 13.2g
Protein 17.16g 34%
Vitamin A 76%
Vitamin C 63%
Calcium 18%
Iron 16%
* Percent Daily Values are based on a 2000 calorie diet.

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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Paneer Butter Masala Instant Pot Pressure Cooker


Disclosure: This post contains affiliate links, which means I can earn a small commission if you purchase through the link at no additional cost to you. Thank you for your support! 

34 thoughts on “Paneer Butter Masala – Instant Pot Pressure Cooker

    1. Hey Elyse – Sure, you can use oil in place of butter in this recipe. I am myself so happy with this discovery of dump and ready sauce, and make it almost every week now. Yesterday we had paneer & green peas curry with this sauce 🙂

    1. Hey Rachna – I think it should work in a regular pressure cooker too, however I have not tried it. I suggest to try 3 whistles and then let the pressure release naturally. Please share if you try it!

    1. Hey Rachna – I think it should work in a regular pressure cooker too, however I have not tried it. I suggest to try 3 whistles and then let the pressure release naturally. Please share if you try it!

  1. Thanks for the wonderful recipe. I tried this on my adventure to learn cooking and it turned out to be the best Panner Butter Masala I ever tasted in my entire life. Thanks so much!

    1. Hi JP – So happy to hear that you thought this was the best Paneer Butter Masala you ever had. Thank you for sharing back your review!

  2. I like how your recipes are always so easy to follow and quick. I was wondering how I should modify this recipe if I have to add chicken/other meat. Could you help with that please? thanks!

      1. Hey Devki – Thank you. I am happy to hear that you are finding the recipes easy and quick, which is definitely my goal with sharing these recipes. I would love to hear how the makhani turns out with chicken for you.

    1. Hey Michelle – Sure, you can add almonds in place of cashews. The taste may be slightly different, but still great. I hope you enjoy it!

  3. Thank you so much for this recipe. I am a skeptic but I do like to try a lot of different things and this one was a hit. I lived in a boarding school all my life and am a foodie….so do plenty cooking myself. I always make some variation or two and it turned out perfect. I replaced honey with pitted dates. And instead of using the thin cloth, put all the spices except cumin in the pot as well and mixed it as per steps. The only issue I had was that the cream had separated when I opened the pot which is not good. It does so under heat so might need to add it separately when the pot is done. Also, in the latter part I put the chunks of paneer first with some cumin to sauté before putting in the curry. This gave it a tadka seasoning. Perfect, thank you again.

    1. Hi Manas – Love the detailed feedback, and I always learn from the variations that readers make. You are spot on that it is better to add the cream after pressure cooking. I was reworking and re-photographing the recipe just yesterday and made that change. See the updated video on the recipe. Thank you!

  4. I have tried this recipe today ,Came out super delicious ! My family loved it !! Thank you so much for sharing this recipe ..! Going to try my hand on all your instant pot recipes

  5. I just made this and my first curry after rice kheer(from here) using instant pot and both turned out perfect and amazing. Just made one change added extra chilli.

  6. Tried paneer butter masala as my first receipe in instapot today. Came out really well. Thanks for creating this instapot receipe link.
    Will try your other vegetarian receipes for my family in the next few weeks.

    1. Hey Seema – So happy you tried this as your first recipe and liked it. Thanks for reporting back. Do let me know how the others turn out 😊

    1. Sounds great! I am sure they will love it. The spices in the cheese cloth are mainly for flavor and aroma, they will not increase the spice level of the curry. Do adjust the Garam Masala and red chili powder to your taste.

    1. Hey Radha…you can add in any thin cloth. Another option is skip adding the whole spices initially. Then add them after you pressure cook. The only reason I add the whole spices in the cheese cloth is so I can remove them before using the hand mixer.

  7. i made this and it was DELICIOUS. i usually don’t like recipes that don’t saute onion and spices first, but that was not a problem in this recipe. it was great. and SO QUICK. thanks!

    1. Thanks Dharia for sharing your experience. I also always think about not getting the raw onion smell when not sautéing onions, but this recipe does not need that.
      I am glad you enjoyed the recipe!

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