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 curry recipes – Palak Paneer, Paneer Tikka Masala and Matar Paneer.
Table of Contents
Watch How to Make Paneer Butter Masala
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.
Paneer Butter Masala – Instant Pot Pressure Cooker
Ingredients
- 1 lb Paneer or Cottage cheese, chunks
- 2 tablespoon Butter
- 1 Green chili pepper , (optional)
- 1 teaspoon Cumin seeds (Jeera)
- 1 Onion, cut in large pieces
- 1 tablespoon Ginger, minced
- 1 tablespoon Garlic, minced
- 4 Tomato, cut in large pieces
- 1/4 cup Cashews
- 2 tablespoon Dried Fenugreek leaves (Kasoori Methi)
- 1/4 cup Water
- 1/4 cup Cream, heavy whipping or coconut cream
- 1 tablespoon Honey
- 1 teaspoon Salt, adjust to taste
Spices
- 1/2 teaspoon Ground Turmeric (Haldi powder)
- 1 teaspoon Coriander powder (Dhaniya powder)
- 1/2 teaspoon Ground Cumin (Jeera powder), or Garam Masala
- 1 teaspoon Cayenne or Red Chili powder, adjust to taste
Whole Spices
- 1 inch Cinnamon (Dalchini)
- 5 Green Cardamom (Elaichi)
- 2 Black Cardamom (Moti Elaichi)
- 1 teaspoon Black Peppercorns
- 1 teaspoon Cloves (Laung)
Instructions
- 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 on high pressure 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.
Video
Notes
- 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.
Nutrition
Check out other Instant Pot Curries you might enjoy:
Do you think this would work without the cashews or with a different nut? I love paneer but am allergic to cashews.
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!
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.
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!
So kind. Thank you sister. Enjoy!
I tried this today loved it….thanks
Hey Preeti – So happy to hear you enjoyed the paneer makhani recipe. Thank you for sharing your review!
This turned out delicious! Thanks so much for the recipe!
Hey Preethi – Glad to hear you enjoyed the Paneer Makhani 🙂
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
Hey Chitra – Glad to hear you and your family enjoyed paneer makhani. Let me know what else you try ????
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.
Glad to hear you liked them! Thanks for sharing your review.
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.
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 ????
I’m planning on making this for 15 people. What is the spice level of spices ( in the cheese cloth)?
and will the cook time change?
The cook time will remain the same. The instant pot will just take longer to come to pressure. Hope that helps!
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.
I really want to try this recipe but I dont have cheese cloth
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.
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!
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!