Shahi Paneer Masala

  • Author: Kavitha
  • Prep Time: 20 mins
  • Cook Time: 20 mins
  • Total Time: 40 mins
  • Yield: 4 1x


Shahi Paneer Masala



  • 1 and 1/2 cups Paneer, cut into small cubes (cottage cheese)
  • 1 cup finely chopped Onions
  • 1 cup finely chopped Tomatoes
  • 3 finely chopped Green Chilli (use any chilli)
  • 2 cloves Garlic (small)
  • 1 teaspoon grated Ginger
  • 6 Cashew nuts (or blanched almonds)
  • 1 Black Cardamom (moti elaichi), broken to get the seeds out
  • a small stick of Cinnamon
  • 1 teaspoon Red Chilli Powder
  • 2 teaspoons Garam Masala Powder
  • 1 teaspoon Ground Black Pepper
  • 3 teaspoons Salt (adjust to taste)
  • a pinch of Sugar
  • 1 Tablespoon Tomato sauce (or 1 teaspoon tomato paste)
  • 1 cup WARM Milk (or cream) {*important – use fresh, warm milk}
  • Cilantro / Parsley / Coriander leaves for garnish


  1. Heat 2 Tablespoons of oil in a pan with high sides. Add the onions, garlic, ginger, black cardamom (moti elaichi), cinnamon, green chilli.
  2. Sauté (Fry) for 1-2 minutes until the onions start to turn pink
  3. Add in the cashew nuts. (break them roughly)
  4. Fry for a further 3-4 minutes till the onions turn slightly brown and cashews have some color on them
  5. Add the finely chopped tomatoes
  6. Cook (mix & stir occasionally) for 8-10 minutes or until the mixture is reduced to a mush and oil starts to come out from the sides of the onion-tomato mixture.
  7. Switch off the flame. Let it cool for about 5 minutes (or until you can handle the heat). Add the entire veggie mixture to a blender / grinder / food processor. Grind to a smooth paste
  8. In the same pan, heat 2 Tablespoons of Oil and add the paste to the oil. (If there’s some paste in the blender that doesn’t come out, add some water to the blender, swirl it around and pour into the pan)
  9. Let it cook for 6-9 minutes on medium heat stirring frequently to avoid burning. Cook / Fry till the mixture reduces and turns a bit dry and oil starts coming out from the sides.
  10. Add all the spices : Red Chilli Powder, Garam Masala, Tomato Suace, Black Pepper Powder, Salt and a pinch of sugar
  11. Mix well and cook on low for 2-3 minutes
  12. Add warm milk (or cream). Gently incorporate the milk into the paste to form a smooth gravy. Taste and adjust for seasoning
  13. Add the chopped up Paneer cubes. Mix well and let that simmer for 5-6 minutes
  14. Switch off, garnish with cilantro leaves & serve with any kind of bread or rice

Important Tip

  1. When you add milk to the mixture you may notice that it splits. To avoid splitting, use fresh milk. Make sure to use warm milk. Incorporate the milk in batches instead of all at once.

  • Category: Side Dish
  • Cuisine: Indian, Mughlai