Butter Paneer Masala in Instant Pot

This paneer butter masala made in an instant pot features a creamy, luscious, aromatic, and buttery gravy that is used to carry the soft and tender paneer. Packed with the flavor of whole spices, this paneer recipe is by far the most decadent of all paneer recipes.

Jump to:

• What makes this Instant pot paneer butter masala recipe special?
• 🥘 Ingredients for making paneer butter masala in an instant pot
• 🔪 How to make paneer butter masala in an instant pot
• 🍽 How to serve paneer butter masala?
• 🫙 Storage notes
• 💭 Recipe tips
• ❓Frequently Asked Questions
• 📝 Recipe Card
• Paneer Butter Masala in Instant Pot
• 📋Nutrition Facts

Usually, butter paneer masala is made on a stovetop, but today I am bringing you a quick method to make it in an instant pot. If you have tried my instant pot recipes like aloo tamatar sabzi, kala chana, and daal palak you will enjoy this recipe also.

What makes this Instant pot paneer butter masala recipe special?

• This is a quick and easy recipe. The instant pot allows you to cook this recipe faster and more efficiently.
• This is the best recipe among all paneer recipes. It is packed with tons of flavor and lusciousness.
• It is an authentic restaurant style paneer butter masala recipe that will be made in an instant pot.
• It is a very flexible recipe, you can use whatever you have and omit what you don’t. You can also replace whole spices with powdered spices (see ingredient notes).
• Customizable. You can customize this recipe as per your diet and taste. If you want to make this recipe vegan, replace ghee and butter with vegan substitutes and paneer with extra firm tofu, you can also use coconut cream.

It is easy to confuse this recipe with paneer tikka masala ( uses tandoori paneer), Shahi paneer ( more sweet and creamy), and paneer makhani recipe (very sweet and tomato-based paneer recipe). But our today's recipe is at par with all these paneer recipes. Just give it a try you will know for yourself.

🥘 Ingredients for making paneer butter masala in an instant pot

Paneer

For non-Indian readers, paneer is the Indian cottage cheese that can be simply made at home by curdling whole milk. You can use store-bought paneer. I like to use homemade paneer. Check out the paneer recipe if you are interested in making paneer at home.  

Ghee

Ghee is the clarified butter that has the most amazing flavor. You can easily make it at home using creamery butter. Check out the ghee recipe.

If you want to make this recipe vegan, substitute it with the vegan butter of your choice.

Curry leaves

One of my favorite spices, curry leaves adds a unique aroma to this instant pot paneer butter masala. You can replace a tablespoon of whole cumin seeds in the recipe.

Tomatoes

 Use fresh ripe tomatoes for achieving the tangy curry masala. I like to use Roma tomatoes. Choose ripe tomatoes. You can also use canned tomatoes. Just ensure you do not use the ones with added sugars.

Onion

You will need a large onion for making the gravy of the instant pot paneer butter masala. But the only onion that will give the best taste is the red onion. You can also use shallots or yellow onion.

Garlic and ginger

You have o use fresh ginger and garlic in this recipe. But if for some reason you do not have them you can substitute them with ginger garlic paste. But you will add it in the end while you give a butter tadka to the creamy paneer curry.

Cashew nuts

All the creaminess that this recipe has, comes from the cashew nuts. Cashews are the backbone of this recipe. You need 14-16 whole raw cashews for this recipe. No need to soak them or anything. We will be sauteing them with the onions to make them tender.

Curd/ Yogurt

For making this instant pot paneer butter masala, I have used a little bit of curd to mix the powdered spices. This prevents the spices from burning when added to the hot oil.

Curd also balances the sweetness due to tomatoes and cashews and imparts another flavor layer to this paneer curry recipe.

You can substitute curd with an equal quantity of yogurt.

Butter

How can you make paneer butter masala without adding butter? You can use salted or unsalted butter. But reduce the salt in the recipe if you use salted butter.

To make vegan butter paneer masala you can use margarine or the vegan butter of your choice.

Dry fenugreek leaves

Dried fenugreek leaves or the Kasuri methi give a very earthy flavor to this paneer butter masala made in an instant pot. If you do not have it, use finely chopped fresh coriander leaves.

Whole spices

Following whole spices are going to be added to the masala for paneer to give their aroma and flavor:

• Green chilis: Green chilis not only give heat but also add freshness to the taste of the gravy. They are optional.

• Dry Red chilis: I have used sun-dried red chilis. You can reduce or increase their number based on your heat tolerance.

• Green Cardamom: These super aromatic pods of green cardamom will add a sweet fragrant flavor to your curry gravy.

• Cloves: Use just 2 cloves and remove them before blending the masala.

• Cinnamon sticks: I used two small pieces of cinnamon bark. You can use one large cinnamon stick. But if you want to use cinnamon powder, use a pinch of it while cooking the masala in the butter.

• Mace: Use a few mace sticks. Mace is the outer covering of the nutmeg. They are very fragrant and strong. Just use it a little bit. It is optional though.

Powdered spices

Coriander powder: A fine powder of the cry coriander seeds.

Red Chili powder: It is best to use Kashmiri red chili powder. It has more color and flavor and less heat. Use as per your taste.

Turmeric: Use good quality turmeric for the best color and flavor.

Garam masala: A teaspoon garam masala will be enough to add a whole lot of flavor to the paneer butter masala.

Salt: As per taste.

🔪 How to make paneer butter masala in an instant pot

Step 1 Prepping the ingredients

It is important to gather and assemble all the spices and ingredients when you are attempting a recipe like a paneer butter masala, especially when you are making it in an instant pot. Instant pots heat faster and you cannot instantly put off the flame and reduce the heat. So, prepping all the ingredients ahead will ensure the success of your recipe.

Start by cutting the paneer into small cubes and place them in a bowl of warm water with a little bit of salt. Paneer is usually refrigerated and hence is very firm. We do not cook it too much in the butter masala also. So, it is best to put it in salted warm water, to make it soft and add some flavor.

Then chop onions and tomatoes. Peel garlic and ginger and coarsely cut them.

In a small bowl, add curd and add powdered spices, i.e., turmeric, coriander powder, garam masala, chili powder, and salt. Mix, and set aside.

Step 2 Making masala for butter paneer

The masala is onion tomato gravy enriched with cashews.

Set the instant pot on Sauté mode at high temperature for 7 minutes. First, add ghee. As the ghee melts, add curry leaves, chilis, cardamom, cloves, and mace. Stay back as the curry leaves make the oil sputter.

Once the sputtering stops add garlic, ginger, and onion. Sauté the onions just up to a point where they start sweating. Now add the curd and spices mixture. Give it a quick mix and cook for about 30-40 seconds. Now add the chopped tomatoes. Mix and add ¼ cup water. Close the lid of the instant pot and cancel the sauté mode.

Step 3 Pressure cook the tomatoes

Now set the instant pot in pressure cooker mode for 3 minutes. After it's done, let the pressure release naturally.

Step 4 Blending and sieving the masala

Carefully use a ladle or spoon to remove all the dry spices like cinnamon sticks, curry leaves, cloves, cardamom, etc.

Transfer the contents to a blender and blend to form a smooth paste. Now use a metal sieve and sieve the blended masala through it. Use the back of a spoon or something similar to push it through the sieve.

In the end, you will receive a super luscious masala for the butter paneer. Set it aside and get ready for the final step.

Step 5 Cooking butter masala and paneer

Now use the same pot as the instant pot and set the instant pot at sauté mode for 10 minutes at high temperature. First, add butter to it. Now add the fenugreek leaves.

As they start to sizzle, add the sieved masala. Stir it and do a taste test. Add more salt if needed. Now let it cook for 5-7 minutes until it starts to leave the oil on the sides.

Keep stirring it regularly else it can stick to the bottom of the pan. Now add the paneer cubes. Give everything a mix and cook for 3-4 more minutes. Turn off the instant pot. Remove the paneer butter masala into a serving bowl.

🍽 How to serve paneer butter masala?

This instant pot paneer butter masala makes a great dinner as well as a lunch meal.

Serve it warm as an entree alongside flatbreads like naan, pita bread, roti, or paratha. It can also be served with basmati rice. Alongside serve some salad and raita.

🫙 Storage notes

Store the leftover paneer butter masala in an airtight container and refrigerate for 3-4 days. For prolonged storage, freeze it in a freezer-safe container. Just ensure that it is fully cooled before freezing. It will freeze well for months if stored properly.

💭 Recipe tips

• Instant pots heat faster and you cannot instantly put off the flame and reduce the heat. So, prepping all the ingredients ahead will ensure the success of your recipe.
  
• As you will add curry leaves, the oil will kind of sputter, which can be hazardous. So, stay away until it stops sputtering.
  
• Remove any excess liquid from the masala before putting it for blending. You should retain this water and add it back to the masala white sifting.
  
• Take time to shift the masala, as this step is crucial to obtain smooth and luscious gravy for the paneer.
• Substitution Notes:
  * Substitute ghee with vegetable oil or butter.
  * Replace red onions with shallots.
  * You can use canned tomatoes instead of fresh tomatoes.
  * To replace cinnamon sticks, use cinnamon powder while giving butter tempering to the masala in the end.
  * Replace fresh ginger and garlic with the ginger garlic paste. But add it with the final tempering.

❓Frequently Asked Questions

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• Chana Dal in Instant Pot: No-soak Split Chickpea Lentil Curry
  
• Daal Palak | How to make Indian Palak dal recipe?
  
• Dal Makhani: No soak pressure cook recipe
  
• Toor Dal in Instant Pot: No Soak Arhar Dal Recipe
  
• Aloo Tamatar in Instant pot
  

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• Shimla Mirch ki sabzi (Pepper curry)
  
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Till then,

Make it delicious and quick!

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