Paneer Makhani is a classic Punjabi dish. Paneer Makhani is also known as Paneer Butter Masala, and it is essentially Indian cheese in a creamy tomato gravy. My version is made with no butter and no cream.
Every Diwali, my entire family gets together at my mom’s home, even if it’s on a weekday. We start Diwali off with a puja (prayer) and take turns singing a variety of bhajans (religious songs). Once done, my mom gives each one of us prasad (an offering) which is usually wheat halwa prepared with ghee, sugar, flour, and water.
Are Paneer Makhani and Paneer Butter Masala the same?
Yes! Makhani or Makhni translates to “butter”, so essentially, Paneer Makhani (aka Paneer Makhni) is paneer cooked in a butter sauce. So yes, Paneer Makhani and Paneer Butter Masala can be used interchangeably. This is also a Paneer Butter Masala recipe. Furthermore, Paneer Makhani is also known as Paneer Makhan Masala and Paneer Makhanwala.And then the best part, dinner! Every year my mom makes a paneer dish, poori (deep-fried bread), and Dahi Vada (fried dumplings soaked in yogurt). For this reason, I always associate paneer with Diwali because it’s something I’ve usually eaten on a special occasion, whether it’s during the holidays, or at a party/wedding. Essentially, paneer is festival food or even celebration food. This Diwali I won’t be with my family, however I’ll be thinking of them as I start my own tradition.
Didi’s Best Paneer Makhani
Today’s Paneer Makhani recipe doesn’t come from my mom, but rather my eldest sister who is the best cook I know. My sister has the ability to take an ordinary dish and whip it into something gourmet. She really is that good. I love watching her cook and I’m always picking her brain for ideas.
On my last trip to NJ, I watched my sister make a Healthy Paneer Makhani without butter or cream, and to my surprise, it tasted amazing. What’s even more surprising is she made this paneer dish with 1% low-fat milk, however I used whole milk to be on the safe side.
I had numerous requests for this recipe so I decided to share it with you guys after some experimenting. My husband and I both loved this dish, and thus, I’m confident you will too. So this Diwali, hope you make my Didi’s Lightened Up Paneer Makhani recipe. I wish you all a prosperous and healthy new year! ❤️
How to make Paneer Makhani healthy?
Instead of using butter and cream in this dish, I simply soaked some cashews and blended them with onions, ginger, garlic, green chilies, and a few aromatic spices. Instead of cream, I used whole milk, and you can totally use 2% reduced-fat or even 1% low-fat milk. On some occasions, I’ve even skipped milk and used water, and it works!
Trust me when I say that you won’t miss the butter and cream in this dish because it’s just that good!
Does this taste like restaurant style Paneer Makhani?
Despite this dish not having any butter and cream, I can assure you it tastes just as good as restaurant-style Paneer Makhani – just check out the reviews below. If you truly want to add butter, add a butter tadka at the end. Here’s how:
Heat up two tablespoons of butter and add 1/2 tsp of Kashmiri red chili powder (aka similar to paprika). Add the heated butter tadka to the dish and serve.
Allergic to nuts? What can I substitute for nuts?
If you are allergic to nuts or simply don’t want to use nuts in this recipe, you will need to use cream.
Here’s how to do it:
- Blend the onions along with the ginger, garlic, green chilies, and a few spices.
- Cook down the onion mixture, then add the tomato paste as the recipe states.
- Instead of water, add cream next – anywhere from 1/2 cup to 1 cup.
- Now add either water or milk-based on the consistency you desire. If you want to thin out the sauce, add water or even 1% low-fat milk, if you want a rich and creamy consistency, then add whole milk. You will need 1 cup to 1 1/2 cups of liquid either in the form of water or milk or a combo of both.
Can I make Paneer Butter Masala (Paneer Makhani) vegan?
Well, sort of. There is no substitute for paneer, but if you really must go vegan, use tofu instead of paneer. I would lightly saute the tofu before adding it to the creamy gravy. Additionally, instead of milk, use water or even cashew milk.
Paneer Makhani recipe is:
Rich & Creamy
Made with NO BUTTER, NO CREAM
Perfect on Diwali
How to make Paneer Makhani recipe step by step?
Soak Paneer & Make a Paste
1. Soak paneer in warm water for 20 minutes.
2. Grind cashews and water in a NutriBullet until smooth paste forms.
3. Then add onion, ginger, garlic, green chiles, and cardamom.
4. Blend until smooth paste forms.
1. Heat a wok on medium heat. Use a nonstick preferably, I like Ballarini Granite. Once hot, add hing, turmeric powder, cinnamon stick, cloves, and cumin seeds. Saute for a minute.
2. Pour the cashew onion paste. Saute on low-medium heat for 10 minutes. Season with salt.
3. Stir often.
4. Eventually you’ll end up with this.. notice the color will darken slightly.
5. Add tomato paste. Cook for a couple of minutes on low-medium heat.
6. Add water. Gently stir until everything combines.
7. Add milk SLOWLY. We want to temper the milk so add it SLOW to avoid curdling.
8. Once all the ingredients are combined, add coriander powder and salt. Cook for a couple of minutes.
9. Cube the paneer into small or large pieces of cubes or even triangles.
10. Add the paneer to the sauce. Season with red chili powder. Stir. Cook for about 4-5 minutes on low-medium heat.
11. Now add kasoori methi and a touch of garam masala.
12. Stir well. Turn off the heat.
1. Garnish with lots of fresh cilantro. Serve with garlic naan, roti, or rice.
Pin & Enjoy!
More Indian Dishes!
- Malai Kofta (no fry, no butter, no cream)
- Paneer Makhani (no butter, no cream)
- Mughlai Shahi Paneer (no butter, no ghee, no cream)
- Matar Paneer
- Aloo Tikki Chaat
Paneer Makhani (no butter, no cream, gluten-free)
- 400 grams paneer Haldiram's is best, Gopi is good
Make a Paste
- 1 tbsp avocado oil
- 1/8 tsp hing (asafetida) gluten-free hing
- 1 tsp cumin seeds
- 1/2 tsp turmeric powder
- 2 cloves
- 1 inch piece cinnamon stick
- paste from above
- 1/4 cup + 2 tbsp tomato paste
- 1 cup water
- 1 1/2 cups whole milk 1% or 2% will work too
- 1 tsp coriander powder
- salt to taste
- 1/4 tsp red chili powder
- 2 tbsp kasoori methi I like MDH
- 1/4 tsp garam masala
- handful fresh cilantro leaves chopped
Soak Paneer & Make a Paste
- Soak paneer in warm water for 20 minutes.
- Grind cashews and water in a NutriBullet until a smooth paste forms.
- Then add onion, ginger, garlic, green chiles, and cardamom.
- Blend until a smooth paste forms.
- Heat a wok on medium heat. Use a nonstick preferably, I like Ballarini Granite. Once hot, add hing, turmeric powder, cinnamon stick, cloves, and cumin seeds. Saute for a minute.
- Pour the cashew onion paste. Saute on low-medium heat for 10 minutes. Season with salt.
- Stir often.
- Eventually you'll end up with this.. notice the color will darken slightly.
- Add tomato paste. Cook for a couple minutes on low-medium heat.
- Add water. Gently stir until everything combines.
- Add milk SLOWLY. We want to temper the milk so add it SLOW to avoid curdling.
- Once all the ingredients are combined, add coriander powder and salt. Cook for a couple minutes.
- Cube the paneer into small or large pieces of cubes, or even triangles.
- Add the paneer to the sauce. Season with red chili powder. Stir. Cook for about 4-5 minutes on low-medium heat.
- Now add kasoori methi and a touch of garam masala.
- Stir well. Turn off the heat.
- Garnish with lots of fresh cilantro. Serve with garlic naan, roti, or rice.17. Garnish with lots of fresh cilantro. Serve with garlic naan, roti, or rice.