This Easy Paneer Makhani is a lighter take on the North Indian favorite—made without cashews and finished with coconut milk for a rich, creamy texture. It still delivers buttery comfort and bold tomato-spice flavor while cutting back on dairy. Use store-bought paneer or make my simple 2-ingredient homemade paneer instead.
If you prefer an even richer version, try a traditional Butter Paneer made with cashew cream. For a dairy-free alternative, a tofu tikka masala offers similar cozy curry flavors without dairy.
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Keys to Success:
PRO TIP: Don’t skip dried fenugreek leaves (kasuri methi). Their slightly bitter, earthy aroma lifts the sauce and is difficult to replace. A little goes a long way and they dramatically improve the final flavor.
PRO TIP: Use canned crushed tomatoes rather than fresh. Canned tomatoes are more concentrated and slightly sweeter, which gives the curry a deeper tomato flavor and a smoother finish.
Difference Between Paneer Makhani, Paneer Tikka Masala, and Butter Paneer
These dishes are closely related but differ in preparation and flavor:
Paneer Tikka Masala features paneer that’s marinated in spiced yogurt and grilled or broiled before being added to the tomato-cream gravy. The grilling adds a smoky char and it’s often a bit spicier.
Butter Paneer (common in restaurants) is milder and richer due to butter, cream, and often a cashew paste. The paneer is usually cooked directly in the sauce rather than grilled.
Paneer Makhani essentially means paneer cooked in a buttery tomato gravy—“makhan” means butter in Hindi—so it’s very similar to butter paneer. In this recipe, coconut milk replaces cashew cream for a lighter yet creamy and slightly sweet finish.
Garnish & Finishing Touches
I like to finish Paneer Makhani with a drizzle of thick coconut cream for a glossy, indulgent look. Use canned coconut milk and shake the can to incorporate the cream with the thinner milk, or scoop the thick cream from the top. To help it hold on the surface, mix a small spoonful of sour cream or yogurt into the coconut milk before drizzling. A sprinkle of fresh cilantro adds color and brightness, if desired.
Looking For More Recipes? Check These Out!
- Paneer Butter Masala
- Gulab Jamun
- Golden Milk
Paneer Makhani is a popular North Indian dish of paneer (Indian cottage cheese) cooked in a rich, creamy, mildly sweet tomato-based gravy. The sauce traditionally includes butter, tomatoes, cream, and warm spices for a smooth, luxurious texture.
Easy Paneer Makhani Recipe (with Coconut Milk)
Ingredients
- 1 c Yellow Onions, (finely chopped)
- 1 tbsp Crushed Ginger
- 2 tbsp Garlic, (finely chopped)
- 1 c Canned Tomatoes, (crushed)
- 1 tbsp Butter
- 1 tsp Cumin Seeds
- 1 tsp Coriander Powder
- 1/2 tsp Garam Masala
- 1/4 tsp Turmeric
- 1/8 tsp Cayenne
- 1 tsp Kashmiri Red Chili Powder
- 3/4 tsp Salt
- 1 tsp Fenugreek Leaves
- 1 can Coconut Milk
- 1 tsp Sugar
- 300 g paneer, (cubed)
Instructions
- Add 1 tbsp oil to a pot and lightly roast 1 tsp cumin seeds over medium heat until fragrant.
- Add 1 cup finely chopped onions and sauté until translucent.
- Stir in 1 tbsp crushed ginger and 2 tbsp chopped garlic; cook for about a minute.
- Add 1 tsp coriander powder, 1/2 tsp garam masala, 1/4 tsp turmeric, 1/8 tsp cayenne, 1 tsp Kashmiri red chili powder, and 1 tsp fenugreek leaves. Cook for another minute to bloom the spices.
- Pour in 1 cup crushed canned tomatoes and 3/4 tsp salt. Simmer for 5–7 minutes, stirring occasionally.
- Stir in 1 can coconut milk, 1 tsp sugar, and the cubed paneer. Simmer over low–medium heat for 15 minutes to meld flavors.
- Optional: If the sauce is too thick, add water a little at a time (start with 1/4 cup) to reach desired consistency.
Notes
Nutrition
Carbohydrates: 16 g
Protein: 15 g
Fat: 43 g
Nutrition information is an approximation.