This Easy Paneer Makhani recipe is a lighter version of the North Indian favorite — prepared without cashews and finished with coconut milk for a smooth, creamy texture. It remains buttery and comforting, bursting with tomato and warm spice notes while being a bit lighter on dairy. You can buy paneer at the store or make a simple 2-ingredient homemade paneer if you prefer.
If you want an even richer option, try a traditional Butter Paneer that uses cashew cream for extra decadence. For a dairy-free alternative, a tofu tikka masala delivers the same cozy curry flavors without dairy.
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Keys to Success:
PRO TIP: Don’t skip the fenugreek leaves. They contribute an earthy, slightly bitter note that deepens the sauce’s flavor in a way that’s hard to replicate with other spices. Fenugreek elevates this dish and many other Indian recipes — it’s a small ingredient with big impact.
PRO TIP: Use canned crushed tomatoes rather than fresh tomatoes for this recipe. Canned tomatoes are more concentrated and slightly sweeter, giving the gravy a robust tomato flavor and a consistent texture that works well in creamy curries.
What is the difference between Paneer Makhani, Paneer Tikka Masala, and Butter Paneer?
These three dishes share similar roots — paneer served in a spiced, creamy tomato gravy — but they differ in preparation and flavor profile.
Paneer Tikka Masala: Paneer is first marinated in spiced yogurt and then grilled or roasted to make paneer tikka. The smoky, charred flavors are added to the creamy tomato sauce, and the dish is often spicier.
Butter Paneer: This version is common in restaurants and tends to be milder and richer because of butter, cream, and cashew paste. Paneer is usually cooked directly in the sauce rather than grilled first. If you enjoy butter chicken, butter paneer will be the closest paneer alternative.
Paneer Makhani: The term “makhani” means “made with butter.” Paneer makhani is essentially the same as butter paneer: paneer simmered in a creamy, buttery, spiced tomato gravy. In this recipe, cashew paste and heavy cream are replaced with coconut milk to lighten the dairy while adding a gentle sweetness and subtle coconut flavor that complements the spices.
Garnish + Finishing Touches
I like to finish paneer makhani with a splash of extra coconut cream. Use canned coconut milk and shake the can well first — the thick cream often separates and rises to the top. Shaking emulsifies it so you can spoon a little cream over the curry for a glossy finish. If you want the cream to sit nicely on the surface, stir a small amount of sour cream into the coconut milk to thicken it slightly. A sprinkle of fresh cilantro brightens the dish but is optional.
Looking For More Recipes? Check These Out!
- Paneer Butter Masala
- Gulab Jamun
- Golden Milk
Paneer Makhani is a beloved North Indian curry in which paneer (Indian cottage cheese) is simmered in a rich, creamy tomato-based sauce. The gravy combines butter or a buttery substitute, tomatoes, cream or coconut milk, and warming spices to create a smooth, mildly sweet, and aromatic dish.
Easy Paneer Makhani Recipe (with Coconut Milk)
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Ingredients
- 1 c Yellow Onions, (finely chopped)
- 1 tbsp Crushed Ginger
- 2 tbsp Garlic, (finely chopped)
- 1 c Canned Tomatoes, (crushed)
- 1 tbsp Butter
- 1 tsp Cumin Seeds
- 1 tsp Coriander Powder
- 1/2 tsp Garam Masala
- 1/4 tsp Turmeric
- 1/8 tsp Cayenne
- 1 tsp Kashmiri Red Chili Powder
- 3/4 tsp Salt
- 1 tsp Fenugreek Leaves
- 1 can Coconut Milk
- 1 tsp Sugar
- 300 g paneer, (cubed)
Instructions
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Heat oil in a pot and lightly roast cumin seeds over medium heat until fragrant.
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Add the chopped onions and sauté until they turn translucent.
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Stir in the crushed ginger and chopped garlic and cook for another minute.
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Add coriander powder, garam masala, turmeric, cayenne, Kashmiri red chili powder, and fenugreek leaves. Cook for about one minute to bloom the spices.
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Pour in the crushed tomatoes and add salt. Simmer for 5–7 minutes, stirring occasionally, until the sauce thickens slightly.
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Stir in the coconut milk, sugar, and paneer cubes. Simmer on low to medium heat for about 15 minutes to allow the flavors to meld.
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Optional: If the curry is too thick, add water a little at a time — start with 1/4 cup — until you reach the desired consistency.
Notes
For extra richness, stir in an additional tablespoon of butter just before serving.
Nutrition
Nutrition information is automatically calculated and should be used as an approximation.