Name: Paneer Butter Masala - Instant Pot Pressure Cooker
Prep time: 5 min
Cook time: 25 min
Total time: 30 min
Yield: 4
Ingredients: 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 Dried 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)

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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.

If you like paneer, check out other instant pot recipes – Palak Paneer, Paneer Tikka Masala and Matar Paneer.

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.

Don’t forget to check out my post on 23 Best Instant Pot Indian Recipes.

Recipe Video

Instant Pot Paneer Butter Masala topped with cilantro and cream with naan bread on the side

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