Paneer Korma Recipe — Creamy Cashew-Onion Mughlai Gravy

The first time I ordered Paneer Korma at a restaurant, I was expecting another heavy tomato curry. What arrived was pale gold, gently sweet from onions, fragrant with cardamom, and so mild my spice-shy cousin finished a full plate. I went home determined to recreate that same quiet luxury without a mile-long ingredient list.

This paneer korma recipe is the version our kitchen makes on repeat: a cashew and onion gravy, whole spices bloomed in ghee, and paneer stirred in at the end so it stays soft. It is not the same dish as butter paneer or classic shahi paneer, though they are cousins. Korma here means mild, nutty, and creamy first, with tomato playing backup, not lead.

If you want something special enough for guests but calm enough for a Tuesday, you are in the right place. Let’s make it together.

What Makes Paneer Korma Different?

Paneer korma sits in the Mughlai-inspired family of North Indian curries where richness comes from fried onions, nuts or seeds, and yogurt or cream, rather than from a loud tomato masala.

• Butter paneer leans on tomato, butter, and kasuri methi with a brighter red gravy.
• Shahi paneer often pushes tomato and cream for a sweeter, more orange profile.
• Paneer korma (in the style below) keeps the gravy more ivory to golden, lets whole spices speak, and uses cashew paste for body.

Once you taste them side by side, the difference is obvious. On paper it looks subtle. In the bowl it is not.

Why You’ll Love This Recipe

• Mild but deeply flavoured: warm spice, not chilli heat, so kids and guests who avoid fire can enjoy it
• High protein vegetarian main: paneer carries the meal with rice or bread
• Naturally gluten-free: check asafoetida packaging if you use hing blends with wheat flour
• Clear visual cues: you will know exactly when the paste is ready
• Meal-prep friendly: the gravy base freezes well before you add paneer

Ingredients

You will need pantry whole spices, raw cashews for creaminess, and either yogurt or cream for tang and finish. If your paneer is firm from the fridge, soak the cubes in hot water for ten minutes, then drain. That one step changed how my cubes behave every time.

The full quantities are in the recipe card below.

Whole spices and aromatics

• Ghee or neutral oil
• Bay leaf (tej patta), green cardamom, a small piece of cinnamon, cloves
• Cumin seeds
• Finely chopped onion
• Ginger paste and garlic paste

For the cashew paste

• Raw cashews, soaked until soft
• Water, as needed, to blend

For the gravy

• Cashew paste
• Cooked onion mixture
• Kashmiri red chilli powder (colour, very mild heat)
• Ground coriander
• Turmeric
• Plain yogurt whisked smooth, or additional water if you prefer a lighter gravy
• Fine salt

Tomato (optional but recommended)

• One small tomato, pureed smooth, for a faint sweet tang without turning the gravy red

Finishing

• Paneer cubes
• Garam masala
• Heavy cream or a little more yogurt
• Sugar, only if your onions run sharp
• Kasuri methi, crushed between palms (optional)
• Fresh cilantro

How to Make Paneer Korma

Step 1: Prep the cashew paste

Soak the cashews in hot water for twenty to thirty minutes until plump. Drain and blend with a splash of water until completely smooth. Rub a little between your fingers: if you feel grit, blend longer. Gritty paste will never melt into the gravy the way you want.

Step 2: Cook the onion and whole spices

Heat ghee in a heavy pan. Add bay leaf, cardamom, cinnamon, and cloves. Let them puff for a few seconds until fragrant, then add cumin seeds and let them crackle.

Add the chopped onion with a pinch of salt. Cook on medium heat, stirring often, until the onion turns soft and then a deep golden colour. This is the backbone of the flavour. Pale onions give a thin taste. Well-caramelised onions give that restaurant body.

Stir in ginger and garlic pastes and cook until the raw smell fades, about one minute. Add the pureed tomato if using and cook until the oil begins to separate at the edges and the masala looks shiny, five to seven minutes.

Step 3: Build the gravy

Lower the heat. Add Kashmiri chilli powder, coriander powder, and turmeric. Stir for thirty seconds so the spices toast in the fat.

Add the cashew paste and cook, stirring constantly at first, until the mixture thickens and oil shows again at the sides. This can take six to ten minutes depending on your pan. If it sticks, splash a tablespoon of water and keep going.

Whisk yogurt with a little water until lump-free. Turn heat to low, push the masala to the side, add yogurt in a thin stream while stirring, or add in three small additions, stirring fast so it does not split. Simmer gently until the gravy looks cohesive.

Add water to your preferred consistency. Season with salt. Cover and simmer on low for eight to ten minutes so the flavours meld.

Step 4: Finish with paneer

Drain soaked paneer if you used that trick. Slide the cubes into the simmering gravy. Spoon gravy over the top. Simmer two to three minutes only. Overcooking makes paneer rubbery.

Stir in garam masala, cream, and crushed kasuri methi if using. Taste. If the onions were sharp, add a tiny pinch of sugar. Garnish with cilantro.

Serve hot with instant pot jeera rice, roti, or methi thepla. A bowl of cucumber raita on the side is the cooling contrast I always want with a creamy curry.

Tips & Variations

Restaurant-style sheen: A tablespoon of extra ghee swirled in at the end, off heat, adds gloss without making the gravy heavier.

Paneer swap: Firm tofu, pressed and cubed, works with the same timing. For another paneer-centred dinner with a completely different vibe, try my paneer tikka quinoa bowl.

Thali night: Pair smaller portions with palak dal and rice for a full spread without doubling effort. For more iron-forward mains to round out the menu, browse iron-rich vegetarian recipes.

Nut-free limitation: True korma body usually wants nuts or seeds. Melon seeds with poppy seeds (soaked and ground) is a classic alternative, but it is a different prep day. If you only need dinner tonight, a simpler creamy paneer curry may fit better than forcing a nut-free korma clone.

Serving Suggestions

• Jeera rice: the cumin aroma meets the sweet onion gravy in the best way
• Flatbread: naan, roti, or thepla for scooping
• Salad side: kachumber or a simple onion salad for crunch
• Leftovers: gently reheat with a splash of water or milk; add fresh paneer cubes if the old ones tightened in the fridge

FAQs

Is paneer korma the same as shahi paneer?

They overlap in restaurants, but classic shahi often leans more tomato-forward and deeper orange. This korma keeps tomato minimal or optional and foregrounds cashew and onion for a paler, nuttier gravy.

How do I keep paneer soft?

Buy fresh paneer if you can, soak firm cubes in hot water for ten minutes before cooking, and simmer them in the gravy only a few minutes.

Can I make paneer korma vegan?

Replace paneer with firm tofu. Swap yogurt and cream for thick coconut cream and use oil instead of ghee. The flavour profile shifts slightly but stays mild and creamy.

Can I freeze it?

Freeze the gravy without paneer for up to two months. Thaw, simmer, then add fresh paneer cubes.

Why did my yogurt split?

Heat was too high or yogurt went in cold and chunky. Use room-temperature whisked yogurt and keep the pan on low, stirring constantly during incorporation.

How spicy is this?

Mild as written. Kashmiri chilli is mainly for colour. For more heat, add green chillies with the onion or increase Kashmiri chilli within what still looks appetising to you.

A Curry Worth Keeping on Rotation

Paneer korma is the dish I make when I want dinner to feel gentle and still special. The cue I wait for every time is that second shimmer of oil at the edge of the cashew-onion paste. Once you see it, the hardest thinking part is done.

If you try this recipe, tell me in the comments what you served it with. Rice, thepla, or straight from the bowl with a spoon?

Made this? Share a photo and tag @petitepaprika on Instagram. I love seeing your kitchen creations!