This is the orange, slightly sweet tomato gravy you get at an Indian restaurant, built around paneer instead of chicken. Searing the paneer first firms it up so it holds its shape in the sauce instead of turning mushy. Finely chopped onion and cashews, mashed smooth against the side of the pan as they cook down, are what give the gravy its cling instead of a thin, watery curry.

Skillet Paneer Butter Masala

Scale

Method

Melt 1 tablespoon butter with the oil in a large skillet over medium-high heat. Add the paneer in a single layer and sear until golden on two sides, about 4 minutes total. Lift out onto a plate.
4 min
Add the onion to the same skillet and cook until softened and starting to brown at the edges, 6 minutes.
6 min
Stir in the garlic, ginger and green chile and cook until fragrant, about 1 minute.
1 min
Add the crushed tomatoes and the cashews. Bring to a simmer and cook, stirring often and mashing any onion lumps against the side of the pan with the back of a spoon, until the mixture thickens and the raw tomato smell is gone, 9 minutes.
9 min
Stir in the garam masala, cumin, turmeric, chili powder, salt and sugar. Cook for 2 minutes, stirring, until the gravy darkens slightly.
2 min
Pour in the water and simmer, stirring and mashing as before, until the gravy is mostly smooth and coats the back of a spoon, about 6 minutes.
6 min
Stir in the cream and the remaining 2 tablespoons butter until glossy, then return the paneer to the skillet and simmer gently until warmed through, 3 minutes. Do not let it boil hard or the cream can split.
3 min
Crush the fenugreek leaves over the top and stir through. Taste and adjust salt. Scatter with cilantro and serve.
1 min

Substitutions

Paneer — Extra-firm tofu, pressed and cubed. Sear it the same way; it takes the gravy just as well.
Heavy cream — Full-fat coconut milk or cashew cream for a dairy-free version, though the flavor shifts slightly sweeter.
Canned crushed tomatoes — An equal weight of fresh ripe tomatoes, finely chopped, if they're in season. Add 2 tablespoons water to compensate for the missing canning liquid.
Raw cashews — 2 tablespoons plain yogurt whisked in once the gravy comes off the heat, for body without nuts.
Kasuri methi — Leave it out. It adds a background bitterness that's traditional but not essential.

Storing leftovers

Keeps in an airtight container in the fridge for up to 4 days; the paneer firms up slightly but softens again on reheating. Reheat gently on the stovetop over low heat with a splash of water or cream to loosen the gravy, stirring often so it doesn't catch. Freezes well for up to 2 months without the cream; stir the cream in fresh after reheating from frozen.

Questions

Why chop everything so fine instead of using a blender?

Finely chopped onion, garlic and cashews break down on their own as they simmer, and mashing them against the pan finishes the job. It gets close to restaurant-smooth without a dirty blender jar.

My paneer turned rubbery. What happened?

It was either seared too long or boiled too hard once it went back into the gravy. Paneer firms up fast over high heat, so sear it just until golden and keep the final simmer gentle.

Can I use store-bought paneer straight from the fridge?

Yes, but soak it in warm water for 10 minutes first if it feels firm or rubbery. This softens it back up before it hits the pan.

What should I serve it with?

Warm naan or roti for scooping, or steamed basmati rice if you'd rather eat it with a spoon.