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Paneer Butter Masala (Creamy Tomato & Coconut Sauce)

A rich, creamy, and comforting paneer dish made with a spiced tomato base and finished with coconut milk for a smooth, flavorful sauce. This version is simple, uses pantry-friendly ingredients, and comes together quickly for an easy weeknight meal.
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Prep Time 10 minutes
Cook Time 25 minutes
Servings: 6
Course: Main Course
Cuisine: Indian
Ingredients Method Notes

Ingredients
  

  • 500 g paneer cubed
  • 3 tbsp paneer butter masala spice mix
  • 3 tbsp tomato paste
  • 1 cup water
  • 1 cup coconut milk
  • 2 –3 tbsp butter or oil
  • Salt to taste

Method
 

  1. Heat butter or oil in a pan over medium heat.
  2. Add paneer cubes and lightly fry until golden on the edges. Remove and set aside.
  3. In the same pan, add the paneer butter masala spice mix and cook briefly (about 30 seconds) to release the flavors.
  4. Stir in the tomato paste and cook for 1–2 minutes.
  5. Add the water and mix well to create a smooth sauce.
  6. Pour in the coconut milk and stir to combine.
  7. Return the paneer to the pan and simmer for 5–10 minutes, allowing the flavors to come together.
  8. Taste and adjust salt as needed.
  9. Serve warm with rice, chapati, or naan.

Notes

  • Don’t overcook paneer — it can become tough
  • Coconut milk keeps it creamy without needing heavy cream
  • Great served with rice, chapati, or naan
  • You can add vegetables like peas or spinach if desired