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Step 1
Combine all ingredients for the marinade in a bowl and mix well. Add paneer, onions and bell pepper. Stir and coat with the marinade on all sides. Let is rest 15 to 30 minutes in the refrigerator.
Step 2
Heat a pan on stovetop on medium-high heat. Add 2 tablespoon oil. Spread the paneer, onions and bell pepper pieces and lightly brown on each side for about 2 minutes.
Step 3
Add the remaining 1 tbsp oil to the instant pot. Add the onions, ginger, garlic and sauté for about 3 minutes.
Step 4
Add tomatoes, spices, cashews and mix well.
Step 5
Add water and deglaze the pot making sure nothing is stuck to the bottom. Press cancel and close the lid with vent in sealing position.
Step 6
Change the instant pot setting to high pressure for 5 minutes. When the instant pot beeps, let it rest for 5 minutes then manually release the pressure.
Step 7
Blend the contents in the instant pot with an immersion blender or regular blender to a smooth paste. If using regular blender, you may need to cool the ingredients before blending. Get the contents back to the instant pot.
Step 8
Add roasted paneer, onions and bell peppers. Add cream, kasoori methi and any leftover marinade. Stir well and let the curry sauté for 2 minutes.
Step 9
Garnish with cilantro. Paneer tikka masala is ready. Enjoy with basmati rice and naan.