When our kitchen smells like toasted kasuri methi and butter, my kids materialize before I can even call dinner. Paneer butter masala is that kind of aroma. This paneer butter masala with Amul cheese is the weeknight version we repeat: a few cubes of Amul cheese melted into the gravy at the finish. It adds body and a familiar salty edge, so the sauce reads closer to the mild, sweet-tomato creamy paneer butter masala bowls we order out, without a long simmer or a shopping list of specialty cheese.
I learned the hard way that processed cheese needs respect. Add it too early on high heat and the gravy can look split or grainy. Add it gently, off the heat or on the lowest flame, and it melts into silk. Taste salt after, because Amul is already seasoned. That one test note saved a whole pot the second time I tried it.
If you want another paneer main with a different vibe, our Paneer Tikka Quinoa Bowl is a fun fusion dinner. When I am planning a lighter dal-heavy week, I skim our Iron Rich Vegetarian Recipes roundup for ideas that balance richer mains like this one.

Paneer butter masala with Amul cheese at a glance
- Makes: about four servings with rice or naan
- Time: roughly forty-five minutes active (plus soaking cashews if you forget ahead; see FAQ)
- Heat level: mild to medium; Kashmiri chili gives color without much fire
- Diet: vegetarian (paneer + dairy); not vegan as written
- Protein: paneer plus dairy makes this a satisfying vegetarian main when you add bread or rice
What goes in paneer butter masala
Think tomato, dairy, warmth, and a little nutty body. Onions and tomatoes cook down into a sweet base. Cashew paste (or extra cream if you skip nuts) gives the gravy that rounded mouthfeel. Butter and a little sugar balance acidity. Garam masala and kasuri methi do the restaurant-style aroma at the end.
Amul cheese is the wildcard. It is processed cheese, so it melts differently than paneer. You are not replacing paneer with it. You are using a small amount to enrich the sauce and echo the mild salt you taste in shop-style gravies.
Cashew path vs cream-only path
If you can soak cashews for twenty to thirty minutes, blend them smooth with a little water for the silkiest tomato cashew gravy. If you are out of cashews, use heavy cream and simmer gently until the sauce looks cohesive. The Amul cheese still works in either version; just adjust salt last.
Amul cheese in curry: how much and when
For a vegetarian paneer curry this mild, I stay near forty to fifty grams of Amul cheese for a full batch, grated or in tiny dice so it melts fast. You want the cheese to dissolve into the sauce, not float as rubbery blobs. If you only have slices, chop them fine. Never walk away once it hits the pan: stir, melt, taste salt, then call it done.
Why this paneer butter masala tastes restaurant-style
Restaurant butter masala gravies lean sweet, buttery, and faintly nutty, with kasuri methi at the end for that signature whiff. Home cooks often stop short on cook-down time, so the tomato still tastes sharp. Here, the onion-tomato cook until oil separation matters as much as the dairy finish. Amul cheese nudges the salt and umami so you need less guesswork. If you want a second north Indian paneer night with a different texture, Tandoori Cauliflower Quinoa Bowl is another fun route when you still want a bowl format.
How to make paneer butter masala with Amul cheese

Blanch or soak paneer (optional but nice)
If your paneer is firm and store-bought, soak cubes in hot salted water ten minutes, then drain. This helps them stay softer in the gravy. If your paneer is very soft, skip soaking and add it later so it does not crumble.
Build the masala base
Cook cumin seeds in oil until fragrant. Add finely chopped onion and cook until golden, not rushed. Stir in ginger-garlic paste and cook until the raw smell fades. Add tomato puree or very ripe chopped tomatoes and cook until the oil separates at the edges. That separation is your cue that the base is sweet enough to carry butter and cream later.
Simmer with spices and cashew cream
Add turmeric, coriander powder, and Kashmiri red chili powder. Cook briefly, then add cashew paste (or a splash of water if the pan looks tight). Simmer with a lid ajar until the gravy looks thick and cohesive. Add a little water if it catches.
Finish with butter, cream, paneer, and Amul cheese
Lower the heat. Stir in butter, then cream. Add paneer cubes and simmer very gently three to five minutes until heated through. Turn heat to the lowest setting or off. Add grated or very small diced Amul cheese and fold until it disappears into the sauce. Crush kasuri methi between your palms and sprinkle in. Add garam masala, taste, then adjust salt and sugar.
Tip from my kitchen: if the sauce looks oily after adding butter and cream, whisk once off heat and add a tablespoon of hot water. It often comes back together without losing richness.
Tips for smooth paneer butter masala gravy
- Heat: keep the finish gentle when dairy and cheese go in. Boiling hard can break emulsions.
- Cheese timing: Amul last, not with the raw spices.
- Salt last: processed cheese carries salt.
- Paneer: if you like a light crust, shallow-fry cubes first; if you like pillowy paneer, skip frying and use the soak method above.
What to serve with this vegetarian paneer curry
Butter naan is the classic move. Laccha paratha feels special on weekends. On busy nights we do Instant Pot Jeera Rice and a simple salad on the side. If you want a lighter dal on the same menu, Palak Dal balances the richness without competing. For Gujarati comfort on another night, Mag Ni Chutti Dal is a gentle counterpoint to a restaurant style paneer main like this.

Storage and reheating
Store leftovers in the fridge up to two days in a glass container. Reheat on low with a splash of water and stir often so the paneer does not toughen. I do not love freezing this one; dairy-heavy gravies can separate when thawed. If you freeze anyway, reheat slowly and whisk gently.
All measurements, grouped ingredients, and step timing are in the printable recipe card below.

Paneer Butter Masala with Amul Cheese (Creamy Restaurant-Style Gravy)
Equipment
- Heavy kadai or deep skillet
- Blender or small grinder (for cashew paste)
Ingredients
For the base
- 2 tablespoons neutral oil
- 1 teaspoon cumin seeds
- 1 large onion about 200 g; finely chopped
- 1 tablespoon ginger-garlic paste
- 3 medium ripe tomatoes about 350 g; pureed, or 1 cup passata
- 1 teaspoon Kashmiri red chili powder
- 1 teaspoon coriander powder
- 1/4 teaspoon turmeric powder
For the gravy body
- 1/4 cup raw cashews soaked 20 to 30 minutes in warm water, drained and blended smooth with 2 to 3 tablespoons water
- 1/2 to 3/4 cup water as needed to simmer
For finishing
- 2 tablespoons butter
- 1/4 cup heavy cream
- 250 g paneer cubed
- 40 to 50 g Amul processed cheese about two small cubes; grated or finely diced
- 1 teaspoon kasuri methi crushed between palms
- 1/2 to 3/4 teaspoon garam masala to taste
- 1/2 to 1 teaspoon sugar optional, to balance tomatoes
- Salt, to taste (add after cheese)
Instructions
Prep (optional)
- If paneer is firm, soak cubes in hot salted water 10 minutes, then drain.
Cook the masala base
- Heat oil in a kadai. Add cumin seeds; when they splutter, add onion and cook until golden.
- Add ginger-garlic paste; cook until raw aroma fades.
- Add tomato puree, turmeric, coriander powder, and Kashmiri chili. Cook on medium heat, stirring, until oil begins to separate at the sides.
Simmer and finish
- Stir in cashew paste and 1/2 cup water. Simmer 8 to 12 minutes with lid ajar until thick, adding more water if sticking.
- Lower heat. Add butter, then cream; simmer gently 2 minutes. Add paneer; simmer 3 to 5 minutes until hot.
- Turn heat to lowest or off. Fold in Amul cheese until melted. Add kasuri methi and garam masala. Taste; adjust salt and optional sugar. Serve warm with naan or rice.
Notes
FAQs
Q1. Can I skip cashews?
Yes. Use extra cream and simmer until the gravy is thick. You can add a teaspoon of white poppy seed paste if you keep it on hand for body.
Q2. Is this very spicy?
As written it is mild to medium. Kashmiri chili is more for color. Add green chilies with the onion if your household likes heat.
Q3. Can I use tofu instead of paneer?
Firm tofu can stand in for paneer, but the bite will be different. Skip Amul or use a plant-based cheese that melts reliably for you, and adjust salt.
Q4. Why Amul and not mozzarella?
Amul is what many of us already buy in India for sandwiches and maggi nights. It melts into this gravy in a familiar way. Mozzarella can work but reads more stretchy and mild; taste salt carefully.
Q5. Can I make this ahead for guests?
Make the gravy base a day ahead without paneer, cheese, or cream finish. Before serving, reheat gently, then finish with cream, paneer, and Amul cheese so the texture stays fresh.
Q6. Can I freeze paneer butter masala?
I do not recommend it for the best texture. If you must, freeze only the tomato-onion base before dairy finish.
Q7. Is paneer butter masala the same as paneer makhani?
They are cousins. Both use a tomato-butter-cream idea. Makhani often leans more cream-forward; this paneer butter masala keeps a clearer tomato spine and uses Amul cheese for the salty finish instead of leaning only on cream.
Q8. Can I use only grated Amul cheese and skip paneer?
I would not. Paneer gives the chew and protein center. Amul cheese is a flavor and texture booster for the gravy, not a full swap for paneer in this recipe.
If you try paneer butter masala with Amul cheese, tell me in the comments: do you like your gravy sweeter like restaurant bowls, or more tomato-forward? I read every note.
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