panner butter masala 🧈🌶️🥘
For Gravy
3–4 tbsp ghee
2 cloves
1 black cardamom
2 green cardamom
7–8 black peppercorns
1 inch ginger, peeled & chopped
1 green chili, diagonally cut
3 large onions, roughly chopped
1 heaped tbsp degi red chili powder
2–3 tbsp coriander powder
½ tsp turmeric powder
3 large tomatoes, roughly diced
Salt to taste
1 cup curd, beaten
8–10 cashews
2 cups water
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For Sauteed Paneer Masala
2–3 tbsp mustard oil
½ tsp cumin seeds
1 green chili, slit
1 medium onion, finely chopped
1 large capsicum, finely chopped
1 medium tomato, finely chopped
1 tbsp tender coriander stems, finely chopped
1 tsp degi red chili powder
1 tbsp prepared dry masala
800 g paneer, cut into cubes
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For Final Dhaba Paneer Masala
1½–2 cups water
Prepared gravy
Sauteed paneer masala
Remaining paneer, grated
Salt to taste
1 tsp sugar (optional)
1–2 tbsp fresh coriander leaves, finely chopped
1 tbsp ghee
Paneer Butter Masala is a beloved North Indian dish, famously served at roadside dhabas and restaurants. One of the unique aspects of this recipe is the use of ghee and whole spices such as cloves, black and green cardamom, and black peppercorns which create a warm, inviting aroma and complex flavor. Preparing the gravy with roasted onions, tomatoes, and a blend of spices like degi red chili powder, coriander powder, and turmeric results in a rich, thick sauce that perfectly coats the paneer. In my experience cooking Dhaba Paneer Masala at home, mustard oil adds a distinct smoky element during the sautéing of paneer with cumin seeds, green chili, and capsicum, which boosts the taste profile beyond just traditional butter or cream. Adding beaten curd helps balance the acidity and gives a slight tanginess that complements the spices well. Cashews blended into the gravy add a creamy texture without relying solely on cream, giving a wholesome consistency. I find that the key to the perfect dhaba-style paneer is cooking the paneer cubes until lightly golden before combining them with the gravy — this locks in their softness and enhances flavor absorption. Finishing off with fresh coriander and a dollop of ghee intensifies the richness making it a soul-satisfying dish. For those who want to customize, adjusting the amount of red chili powder or adding some sugar helps balance heat and sweetness according to personal taste. Serving this with butter naan or steamed basmati rice completes the meal beautifully. This recipe showcases how simple ingredients transformed through layering techniques and spices yield an authentic taste of Indian dhaba cuisine in your own kitchen.