Vegan Butter Chicken — Tofu in Cashew-Tomato Gravy

There is a specific craving that hits when you smell tomato and butter warming in a pan: restaurant butter chicken energy, but your table might be all plant-based, or split between vegan and vegetarian eaters. I wanted one gravy that everyone could share, then a simple choice at the end for what goes into the bowl.

This recipe is how I make vegan butter chicken at home without losing that slow-simmer comfort. I still call the dish Vegan Butter Chicken with Tofu because the eating experience is the point: tomato and cashew body, coconut cream for silkiness, then the usual makhani finish with kasuri methi, a little sweetness, and warmth from garam masala. If you eat dairy, you can swap the protein for paneer and keep the same steps. Let’s make a pot and see what you pick.

Why You’ll Love This Curry

• Dairy-free gravy that still tastes rich and “restaurant”
• Choose extra-firm tofu (vegan) or paneer (vegetarian) without changing the sauce
• Mostly pantry spices plus tomatoes; cashews do the heavy lifting for creaminess
• Satisfying protein from tofu or paneer; cashews add minerals and richness without dairy cream. For portion numbers I sometimes check USDA FoodData Central
• Freezes well if you double the gravy
• Perfect for mixed vegan-and-vegetarian tables: one gravy, two protein choices
• Pairs beautifully with Instant Pot jeera rice or a simple salad night alongside palak dal

Ingredients

Serves 4

At a glance: about 25 minutes active prep, 35 minutes cooking, 4 servings. The gravy is dairy-free end to end; you only choose tofu (fully vegan) or paneer (vegetarian) for the sear.

Protein (pick one)

• 400 g extra-firm tofu, pressed and cut into 1-inch cubes (vegan), or
• 350–400 g paneer, cut into 1-inch cubes (vegetarian)

Marinade

• 3 tablespoons thick unsweetened plant yogurt (soy or coconut), or dairy yogurt if using paneer only
• 1 teaspoon ginger-garlic paste
• 1/2 teaspoon turmeric
• 1/2 teaspoon Kashmiri red chili powder (mild color, adjust to taste)
• 1/2 teaspoon salt

Gravy

• 1 cup raw cashews, soaked in hot water 20–30 minutes, drained
• 400 g canned tomato puree (or very smooth passata)
• 1 tablespoon neutral oil + 1 tablespoon vegan butter (or oil only)
• 1 large onion, finely chopped
• 1 tablespoon ginger-garlic paste
• 1 green chili, slit (optional)
• 1 teaspoon cumin seeds
• 2 teaspoons coriander powder
• 1 teaspoon Kashmiri red chili powder
• 1 teaspoon garam masala
• 1/2 teaspoon turmeric
• 1 teaspoon sugar or maple syrup (balances tomatoes)
• 3/4–1 cup water or vegetable stock, to loosen
• 1/2–2/3 cup coconut cream (thick scoop from a chilled can), or more for extra richness
• 1 tablespoon kasuri methi (dried fenugreek leaves), crushed between palms
• Salt, to taste
• Fresh coriander, for serving

Pressing tofu: Wrap in a clean towel, set a board and a heavy pan on top for 20 minutes. Dry surface = better sear.

How to Make Vegan Butter Chicken

Step 1: Marinate and sear the protein

Toss tofu or paneer with yogurt, ginger-garlic paste, turmeric, Kashmiri chili, and salt. Rest 15–20 minutes.

Heat a wide pan with a thin layer of oil on medium-high. Shake off excess marinade (keep it; you will use the remainder). Sear tofu or paneer in a single layer until golden on at least two sides. Remove to a plate. Tofu should look crisp at the edges but still tender inside.

Mistake I made once: I crowded the pan and the tofu steamed instead of searing. Half batch, more patience, better color.

Step 2: Build the tomato-cashew base

In the same pan, reduce heat to medium. Add 1 tablespoon oil. Add cumin seeds; when they sizzle, add onion and cook until soft and lightly golden. Add ginger-garlic paste and green chili; cook 1–2 minutes until the raw smell fades.

While that cooks, blend soaked cashews with tomato puree until completely smooth (add a splash of water if needed).

Step 3: Simmer the gravy

Add coriander powder, Kashmiri chili, garam masala, and turmeric to the onions. Stir 30 seconds. Pour in the tomato-cashew puree. Rinse the blender with a little water and add that too.

Stir in sugar or maple syrup, remaining marinade (if any), and 3/4 cup water or stock. Simmer gently 12–15 minutes, stirring often, until the oil begins to separate a little at the edges and the gravy tastes cohesive.

Step 4: Finish

Lower heat. Stir in coconut cream. Crush kasuri methi over the pan and stir. Add vegan butter if you want that classic sheen. Taste: you want a mild sweetness, gentle heat, and clear fenugreek aroma. Adjust salt and chili.

Return tofu or paneer to the gravy; simmer 3–5 minutes to heat through. Do not boil hard after adding coconut cream.

Serving Ideas

• Instant Pot jeera rice or plain basmati
• Whole wheat roti or store-bought paratha
• Another protein-forward night: Paneer Tikka Quinoa Bowl or a grain-bowl night with Tandoori Cauliflower Quinoa Bowl
• A simple kachumber salad on the side
• If you are building a nourishing veg plate, browse iron rich vegetarian recipes for ideas that round out the meal

Leftovers keep 3 days refrigerated in an airtight container. The gravy thickens; loosen with a splash of water when reheating.

What Is Butter Chicken-Style Gravy?

Butter chicken (murgh makhani) is a North Indian restaurant classic: grilled or tandoori chicken finishes in a mild, slightly sweet tomato gravy finished with butter and cream. This version keeps that tomato-first comfort and warmth, but uses blended cashews and coconut cream so the base stays vegan. The spice level here is family-friendly; you can always add chili at the table.

Vegan butter chicken vs butter paneer

Butter paneer (paneer makhani) uses the same style of tomato cream gravy with paneer cubes. Here the gravy stays plant-based, so vegan butter chicken with tofu is the default plate. If you use paneer, you get a vegetarian butter-paneer-style curry with the same sauce, which is useful when one person wants dairy protein and another wants tofu in the same meal.

FAQs

Q1. Can I skip cashews?

You can try sunflower seeds or soaked white beans for body, but flavor and richness will change. Cashew-tomato is the most reliable swap for cream here.

Q2. Is this nut-free?

No as written (cashews). For nut-free, you would need a different gravy architecture (e.g., seeds or coconut-only with a longer reduce). That is a separate recipe test.

Q3. Can I make it ahead?

Yes. Make the gravy through Step 3, cool, and refrigerate up to 2 days or freeze. Finish with coconut cream, kasuri methi, and butter when reheating; then add freshly seared protein.

Q4. Why is my gravy grainy?

Usually under-blended cashews or acidic tomatoes. Blend longer and simmer the full time; a quick blitz with an immersion blender after simmering fixes most batches.

Q5. Can I use store-bought garam masala?

Yes. Quality varies; if yours is very strong, start with 3/4 teaspoon and add more after tasting.

Q6. Paneer feels rubbery. What went wrong?

Often overcooking after adding to the sauce, or searing on too low heat for too long. Sear quickly for color, then let the gentle simmer at the end warm it through.

Q7. What is vegan butter chicken made of?

A tomato-based gravy blended with soaked cashews, aromatics, and spices, finished with coconut cream, kasuri methi, and optional vegan butter. Protein is usually extra-firm tofu (pressed and seared). Paneer is an optional swap in the same steps.

Q8. How long does vegan butter chicken take?

Budget about 25 minutes of prep (soaking cashews, pressing tofu, chopping, blending) and 35 minutes on the stove from sear through simmer and finish. The gravy alone can be made ahead; add coconut cream and protein when you serve.

A Curry That Fits Mixed Tables

Vegan butter chicken (and the butter tofu version you get when you lean into the sear) does not have to mean compromise on comfort. This pot is what I make when I want that slow-restaurant aroma in our kitchen, whether tonight’s protein is tofu or paneer.

If you try it, tell me in the comments: are you team tofu or team paneer in this gravy?

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