Paneer Tikka Masala is a flavorful and aromatic curry, made with marinated and grilled paneer cubes simmered in a rich onion tomato gravy along with warm spices. This restaurant quality Paneer Tikka Masala is so easy to make in the instant pot, that you will not consider take-out again.

Almost a year back, I shared my most popular paneer recipe called, Paneer Butter Masala. This recipe is similar, but has an added flavor from the marinated and grilled paneer. If you are looking for a chicken recipe, try this Chicken Tikka Masala made in the instant pot or this Salmon Tikka Masala for the seafood lovers.
Paneer Tikka Masala is one of the most popular dish ordered in Indian restaurants, as is the delicious Mango Lassi. It is also a favorite on special occasions and parties. You might think that it is hard to get the restaurant quality flavor for Paneer Tikka Masala at home. However once you have the basic Indian spices, it is fairly easy to make this curry in the pressure cooker or even on the stovetop.
What is paneer tikka masala?
Paneer tikka masala is a dish of chunks of roasted marinated paneer (paneer tikka) in a spiced curry sauce. The sauce is usually creamy and dark orange colored. We will change it up a bit to make it easy to make it in the instant pot, with the same great taste.
What is paneer?
Paneer is fresh, soft but firm cottage cheese popular in Indian cuisine. Paneer is a very versatile dairy product and used in an assortment of Indian curries, snacks and sweets.
You can find paneer at any local Indian grocery stores. Some Costco stores also carry paneer..yay! If you are unable to find paneer in a store, you can also make it from scratch in your instant pot. Just search and there are many recipes.
If you love paneer, check out this collection of 20+ Best Paneer Recipes.
What is tikka?
Tikka is small pieces of meat or vegetables marinated in a spice mixture. These pieces are then grilled or sautéed to give a wonderful flavor to the dish.
See this tandoori paneer tikka, hariyali paneer tikka and chicken tikka kebab recipe.
What is masala?
Masala means a mix of spices. In case of paneer tikka masala, Masala means a sauce with onions, tomatoes and warming spices.
You will love this Paneer Tikka Masala because:
√ It is warm, flavorful and comforting
√ It is vegetarian and gluten free. Reduce the amount of onions and it is low carb too.
√ It is easy to make in the instant pot
√ You can get a restaurant quality dinner at home!
√ The thick and creamy sauce is perfect with rice or for dipping naan

Difference between Paneer Tikka Masala and Paneer Butter Masala?
The two dishes are very similar but certainly have some subtle differences in how they are made.
Paneer Tikka Masala, has the below characteristics –
- uses paneer tikka as it’s base, which is marinated grilled paneer cooked in a tandoor or on a grill (we will modify this aspect a bit to simplify the recipe)
- has a spicier tomato based sauce
- no butter used
- very less cream used
- lemon juice added
Paneer Butter Masala has the below distinctive features –
- has a tomato based sauce, but less tomatoey than tikka masala.
- more buttery & more creamy
- very mild
- cashew, honey used to sweeten
How to make paneer tikka masala
There are 4 main steps to make Paneer Tikka Masala in the instant pot.
- Marinate the paneer
- Brown the paneer
- Make the sauce
- Pressure cook
Let’s get started with the easy step-by step paneer tikka masala recipe.
Marinate the Paneer
- For making paneer tikka, we marinate the paneer pieces with yogurt and some spices and then pan roast them before putting them in the curry. I also like to add bell peppers and onions when marinating the paneer.
- Add the yogurt, spices, ginger, garlic, lime juice to a bowl and mix them. Now add in the paneer, bell pepper and onion pieces and coat them with the marinade on all sides. Refrigerate this paneer tikka marinade for 15 to 30 minutes.

Brown the paneer
- In a flat pan, heat some oil and place the marinated pieces of paneer, peppers and onions. Slightly brown then on all sides. This adds a wonderful flavor to the paneer, and the curry!
- You can do this step while the sauce is cooking in the instant pot. Also, this step is optional. You can also add the marinated paneer and veggies directly to the sauce.

Change from the traditional Paneer Tikka Masala recipe
This is the part that is different than the traditional Paneer Tikka Masala recipe. Ideally the marinated paneer pieces would be cooked in a tandoor (or grill) or oven until they start to char and then added to the sauce.
To go the traditional route, add the marinated paneer, peppers and onions to skewers (one piece at a time in that order). Bake and broil in the oven until they start to brown on the edges.
We are simplifying the recipe by browning the paneer in a pan. The only thing we lose is a bit of the smoky flavor. But trust me, you will still love this version of paneer tikka masala and will not hesitate to enjoy it for a quick weeknight dinner.
Make the Paneer tikka masala sauce
I like to have lots of sauce in my curries, so I can enjoy them with rice or naan. We will make the sauce in the instant pot. If you are new to the instant pot, check out this Instant Pot Quick Setup Guide to get you started.
Heat some oil in the instant pot. Add onions, ginger and garlic. Sauté for about 3 minutes. Add tomato, spices, cashews and water. You can cut the tomatoes in large pieces, as we are going to puree the sauce after pressure cooking.

Pressure cook the Paneer Tikka Masala curry
- Close and pressure cook for 5 minutes, followed by 5 minute NPR (release pressure manually 5 minutes after the beep).
- 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, Kasoori methi (dried fenugreek leaves) and the browned paneer & veggies. You can also add the marinated paneer and veggies without browning, to make this recipe easier. Stir well and let the curry sauté for 2 minutes.
Garnish with cilantro and enjoy!

This Paneer Tikka Masala is so creamy & so good!
Can this Paneer Tikka Masala be made on stovetop without instant pot?
Yes, of course. The instant pot just helps to make the cooking faster with cooking food under pressure. You can cook the exact same recipe in a skillet or a stovetop pressure cooker.
For a stovetop pressure cooker, cook the sauce ingredients for 2 whistles. For a skillet, after adding the sauce ingredients, cover and simmer until the onions and tomatoes are well cooked in about 15 minutes. Then puree and add the marinated paneer.

Tips for perfect Paneer Tikka Masala
- Use ghee or butter in place of oil to enhance the flavor.
- Use plain full fat or greek yogurt for the marinade.
- I use Kashmiri chili powder which is mild, but adds a beautiful color to the curry
- I use fresh tomatoes, however canned diced tomatoes will work too.
Vegan version of Paneer Tikka Masala
I have made Vegan Tikka Masala with tofu, and here are my suggestions to make Tofu Tikka Masala.
- Use olive oil or another fav plant-based oil
- Use tofu for paneer in the marinade
- Skip the yogurt when marinating the tofu, just marinate in spices.
- Use coconut milk in place of heavy cream
What to serve with Paneer Tikka Masala
We love to enjoy this paneer tikka masala with garlic naan, paratha or roti.
Rice is another great option. You can use brown or white basmati rice. If you like flavored rice, check out my cumin/jeera rice and matar pulao recipe. It goes really well with this curry.
For healthier alternatives, use quinoa or cauliflower rice as a side with this paneer tikka masala!
Hope you enjoy this Paneer Tikka Masala!
Looking for more paneer recipes, check out my popular recipes:
📖 Recipe

Paneer Tikka Masala Recipe in Instant Pot
Equipment
Ingredients
- 12 ounces Paneer cut in small cubes
- ¾ cup Onion cubed, layers separated
- ¾ cup Bell Pepper cubed
For Marinade
- ¼ cup Yogurt thick or greek yogurt
- ½ tablespoon Ginger grated
- ½ tablespoon Garlic minced
- 2 teaspoon Kashmiri Red Chili powder mild, adjust to taste
- ½ teaspoon Ground Turmeric (Haldi powder)
- ½ teaspoon Garam masala
- ½ teaspoon Salt adjust to taste
- 1 tablespoon Lime juice
For sauce
- 3 tablespoon Oil divided
- 1 cup Onion chopped
- ½ tablespoon Ginger grated
- ½ tablespoon Garlic minced
- 4 Tomatoes medium, cut into large pieces
- 15 Cashews
- ¼ cup Water
- ¼ cup Heavy cream
- 1 tablespoon Dried Fenugreek leaves (Kasoori Methi)
- Cilantro to garnish
Spices for sauce
- ½ teaspoon Garam masala
- 1 teaspoon Kashmiri red chili powder adjust to taste
- ½ teaspoon Ground Turmeric (Haldi powder)
- ½ teaspoon Salt adjust to taste
Instructions
Marinate the Paneer
- Combine all ingredients for the marinade in a bowl and mix well. Add paneer, onions and bell pepper. Stir and coat with the marinade on all sides. Let is rest 15 to 30 minutes in the refrigerator.
Brown the marinated Paneer (optional - This step can be done while the curry is cooking in the instant pot)
- Heat a pan on stovetop on medium-high heat. Add 2 tablespoon oil. Spread the paneer, onions and bell pepper pieces and lightly brown on each side for about 2 minutes.
Prepare the sauce
- Add the remaining 1 tbsp oil to the instant pot. Add the onions, ginger, garlic and sauté for about 3 minutes.
- Add tomatoes, spices, cashews and mix well.
- Add water and deglaze the pot making sure nothing is stuck to the bottom. Press cancel and close the lid with vent in sealing position.
Pressure Cook the Curry
- Change the instant pot setting to high pressure for 5 minutes. When the instant pot beeps, let it rest for 5 minutes then manually release the pressure.
- 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 roasted paneer, onions and bell peppers. Add cream, kasoori methi and any leftover marinade. Stir well and let the curry sauté for 2 minutes.
- Garnish with cilantro. Paneer tikka masala is ready. Enjoy with basmati rice and naan.
Video
Notes
- Use olive oil or another fav plant based oil
- Use tofu for paneer in the marinade
- Skip the yogurt when marinating the tofu, just marinate in spices.
- Use coconut milk in place of heavy cream
Note: Nutrition values are my best estimates. If you rely on them for your diet, use your preferred nutrition calculator.
Sree says
I made this for dinner tonight, and it came out exceptionally tasty. Thank you. Also, I love your blog...
Sumi says
This tasted amazing ! and was so easy. Thank you 🙂
Nikita says
Tried this and it was excellent! Thank you 🙂
Jenny says
I ended up making this with tofu as the paneer I'd made didn't work. It was lovely with tofu, I did use the yoghurt and I fried the tofu and veggies before adding them to the sauce. My only problem was that the volume of the sauce was too low in my instant pot for my stick blender to work properly.
Meeta Arora says
Hi Jenny - Thank you for the feedback. Sometimes while running the hand blender, I do tilt the instant pot a bit (carefully), so the blender immerses and blends well. I am happy to hear that you enjoyed this recipe with tofu too!
Rupal says
Can I make this without the cashews? What can I use in place of the cashews? My daughter is allergic to cashews.
Meeta Arora says
Hi Rupal - If other nuts are an option, add almonds in place of cashews. Else I would say just leave them out and add some extra cream to compensate for the nuts. Hope you all enjoy the curry!
Anisha says
Has anyone tried making the recipe without cream? Can I just add in more cashew instead of cream? Not vegan but would prefer cooking without cream. Thank you!
Meeta Arora says
Hi Anisha - Yes, adding more cashews will work well. You can definitely skip cream in this recipe. Hope you enjoy it!
Meenal Iyer says
I marinated the veggies for 30 mins in refrigerator..and added them in when sauce was done, but the onion still tastes raw. I had ensured that the marinade was over all the paneer and the onion. What do I do? It's all mixed now.
Thanks so much. The sauce and the paneer taste like heaven.
Meeta Arora says
Hi Meenal - Just give the curry with the veggies a boil on sauté mode for about 3 minutes, and the onions and peppers will get cooked. I am glad you enjoyed the taste 🙂
Sowmya says
Made this Curry and it was so easy . For the sauce I used steam mode for 5 min . We enjoyed the recipe
Thank you
Meeta Arora says
Hey Sowmya - So glad to hear you enjoyed the Paneer Tikka Masala. Thank you for sharing back your experience!
Darcee says
The sauce had a good taste but it wasn’t creamy like normal tikka masala sauce. Also I’m glad I pan fried the paneer. If I didn’t it would be raw. After it sat in the sauce for 30 mins or longer it was softer but it was very raw and not what I’m used to. It wasn’t bad but I’ll probably find another recipe to compare.
Meeta Arora says
Thank you for sharing your experience, Darcee! Pan frying paneer or grilling paneer is important for a more authentic tikka masala taste. For a thicker sauce, use store bought tomato paste in place of fresh tomatoes. You can also add a cornstarch slurry to thicken the sauce (which is what most restaurants probably add to thicken the sauce).
Georgia Leon says
Made this tonight and it was fun and easy. I used my airfryer for the paneer and veggies and it turned out geat. Thank you for the recipe!
Meeta Arora says
Hey Georgia - Air fryer is a great way to cook the paneer and veggies. I have tried that too. Glad you enjoyed the recipe!
VHK says
Can this and other instant pot recipe be made 1 week ahead and refridgerated?
Meeta Arora says
Hello - I can say this tikka masala will stay good for about 3 days in the refrigerator. It may work well even longer, but I cannot confirm as refrigeration settings can vary. Hope you enjoy it!