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.

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

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.

Chunks of paneer or cottage cheese cooked in a mildly spiced tomato gravy. Delicious and very easy to make Paneer Butter Masala in the instant pot. Great to dip naan.

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

4.90 from 183 votes

Paneer Butter Masala – Instant Pot Pressure Cooker

Chunks of paneer or cottage cheese cooked in a mildly spiced tomato gravy. This Paneer Butter Masala is so delicious and very easy to make in the instant pot. 
Prep Time: 5 minutes
Cook Time: 25 minutes
Total Time: 30 minutes
Servings: 4

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

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

Don’t have a spice bag: If you dont have a spice bag, you can skip the whole spices, and add about a teaspoon of Garam Masala (adjust to taste) at the end. 
Freezing: 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

Nutrition

Serving: 331gCalories: 302kcalCarbohydrates: 24.69gProtein: 17.16gFat: 16.57gSaturated Fat: 6.987gCholesterol: 37mgSodium: 1041mgPotassium: 655mgFiber: 4.5gSugar: 13.2gVitamin A: 3800IUVitamin C: 52mgCalcium: 180mgIron: 2.9mg

Additional Info

Course: Main Course
Cuisine: North Indian
Diet: Gluten-free, Vegetarian
Tried this recipe?Mention @pipingpotcurry or tag #pipingpotcurry!

Check out other Instant Pot Curries you might enjoy:

About Meeta

I strongly believe that each one of us has a chef inside us, we just need to explore the ingredients and create great food. My passion is to share easy, healthy, and wholesome recipes made using Instant Pot & Air Fryer, that are well tested, so you can cook with confidence.

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184 Comments

  1. Most easiest yet tastiest recipe for paneer butter masala .Making it in a traditional way on stovetop takes more than an hour to me . Using hand blender for this recipe made the procedure more easier .Today I have made it and believe me , it is the most tastiest paneer butter masala I have ever made . Thank you Meeta 🙂 keep posting 🙂 😀 .

  2. Thanks for this super awesome and really simple recipe. Everyone at home loved it! I am new to instant pot and have been following all your recipes.

  3. I was skeptical at first because of the lack of liquid ingredients. But it comes out amazing! We have made it many times and it does not disappoint! I also find this actually makes enough sauce for two meals for my family, so I divide and freeze half of it for a quick meal on another night.

    1. Thanks Amanda. I am glad you have enjoyed the paneer butter masala many times. Using fresh tomatoes helps with not needing much water in this recipe 🙂

  4. This recipe is so easy and mouth watering. Thank you so much. Cooked dinner in less than 20 minutes.

    1. Hey Shweta – So glad to hear you enjoyed the paneer makhani. Thank you for sharing back your review!

  5. This was incredibly delicious!! Thank you for your amazing recipes, they always turn out so well 🙂

    1. Hey Charlotte – So glad you enjoyed the paneer butter masala. Thank you for sharing back your review!

  6. This recipe has become a staple in our family! We are going to make it for some guests who can’t eat nuts- what would you substitute for cashews? More cream/coconut milk?

    1. Hey Mia РSo glad to hear you all are enjoying the paneer butter masala. I would say just skip the cashews and add a bit more cream/coconut milk as needed at the end. You might want to reduce down the curry to make it thicker by just putting on saut̩ for few minutes. Hope the guests enjoy it!

  7. Oh boy…this was going great and then I made the mistake of substituting ground fenugreek (2 teaspoons, eeeeek) for seeds. It smelled and looked wonderful, but tasted awful! My mistake as it’s been a while since I’ve used fenugreek, so I’m trying again this week…wow, and I just went back to check the amount of seeds and noticed it said LEAVES. Facepalm.

    1. Hey BenRad – Yes, fenugreek seeds will not work in this recipe. The leaves have a very nice aroma and taste. The seeds have a very strong flavor and can be bitter when added in such curries. Do add the fenugreek leaves in your next try. Hope you enjoy it 🙂

      1. Everything went as planned last night and everyone loved it. Excellent recipe and I will make again. I’ve used seeds in the past but remembered it’s typically a very small amount, so once I realized my mistake I found a box of leaves. Great recipe, my daughter had 3 servings.

    1. Hiya, hoping to attempt this recipe tomorrow. My daughter is allergic to cashews. Wondering if i can use almonds instead? Not sure if that would work…
      Thanks.

      1. Hey BAV – Almonds will work. I would just suggest to grind them before adding them, as they don’t get as soft as cashews and might not blend well along with the gravy.

    1. Hey Dhvani – Can you use another nut or no nuts at all? You can skip them, just that the gravy won’t be as thick. If you have tried any seeds that have worked in the past, you can add a paste of the seeds.