Step 1

Heat 1 tablespoon oil in a pan and add 2 green cardamoms.

Step 2

Then add 1 cup cubed onions & fry stirring often until they turn transparent to light pink.

Step 3

Next add 1½ cup tomatoes & ¾ teaspoon salt. Saute for 3 minutes.

Step 4

Cover and cook till the onion & tomatoes turns soft & completely mushy.

Step 5

Next add in ¾ to 1 teaspoon garam masala, 1 teaspoon coriander powder, 12 cashew nuts, ¾ to 1 teaspoon red chili powder & ¾ teaspoon sugar (optional).

Step 6

Fry this till the onion tomato masala turns aromatic. This takes 2 to 3 minutes.

Step 7

Turn off the stove & cool this completely.

Step 8

Transfer to a blender with 1 cup water. Blend to a really silky smooth puree. If it is not smooth, then filter it through a strainer to another bowl. Set this aside.

Step 9

Heat 1½ tablespoon butter in the same pan.

Step 10

Optional - When the butter melts, add ½ inch cinnamon, 3 cloves, 2 green cardamoms & 1 small bay leaf.

Step 11

Reduce the flame to low, saute 1½ teaspoon ginger garlic paste for 1 minute. It should begin to smell good and the raw smell should go away. Do not burn this as it will leave a bitter taste.

Step 12

Pour the blended onion tomato puree. (optional - At this step sometimes I add ¼ teaspoon more red chili powder to adjust the color).

Step 13

Pour ½ cup water & mix well. Cover & cook on a medium heat until the gravy thickens & traces of butter or oil is seen on top. Keep checking in between and give a good mix.

Step 14

When the gravy is done, it will turn thick and traces of fats will be visible on the gravy. Taste test the gravy and add more salt if needed.

Step 15

Lower the flame completely, then add 200 to 250 grams paneer. Take 1 teaspoon kasuri methi to your palm and crush it in between your palms. Sprinkle this..

Step 16

Mix & cook covered on a low heat for 2 minutes. Turn off and pour 2 to 3 tablespoons of cream & stir.

Step 17

Transfer paneer butter masala to a serving bowl. Garnish with 1 tablespoon cream & 2 tbsps chopped coriander leaves. Serve this with butter naan or jeera rice.