Kaju Paneer Masala is a rich, creamy, and flavorful North Indian dish made with paneer (Indian cottage cheese) and cashews. This dish is perfect for festive occasions, family dinners, or whenever a restaurant-style meal is desired at home. The smooth and velvety gravy, infused with aromatic spices and a hint of sweetness from cashews, makes this dish a favorite among paneer lovers.
Paneer absorbs the rich flavors of the gravy, while cashews add a subtle nutty taste and creamy texture. The combination of tomatoes, aromatic spices, and a special white paste makes this dish stand out. It pairs beautifully with naan, roti, or jeera rice, making it a delightful treat for any meal.
This recipe follows a step-by-step process to help you achieve a restaurant-style dish effortlessly at home. Follow these simple instructions to create a flavorful and creamy Kaju Paneer Masala that will impress everyone at the table!
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Ingredients -
For the White Paste:
- Onions (sliced) – 2
- Cashews – 2 tbsp
- Melon seeds – 1 tbsp
- Coriander stems (finely chopped) – 1 tsp
- Green cardamoms – 2
- Water – 1 cup
For the Gravy:
- Paneer (cubed) – 200 gm
- Cashews – ¼ cup
- Oil – 3 tbsp
- Ghee – 1 tsp
- Butter – 1 tsp
- Cumin seeds – ½ tsp
- Green cardamom – 1
- Cinnamon stick (small piece) – 1
- Bay leaf – 1
- Green chilies (slit) – 2
- Ginger-garlic paste – 1 tsp
- Tomato paste – 1 cup
- Turmeric powder – ¼ tsp
- Red chili powder – ½ tsp
- Coriander powder – ½ tsp
- Cumin powder – 1/8 tsp
- Garam masala – ¼ tsp
- Kasoori methi – ½ tsp
- Salt – as per taste
- Water – as required
Method –
Step 1: Prepare the White Paste
- First, heat a pan and add 1 cup of water to it. Then, slice the onions and add them to the pan.
- After that, add 2 tbsp of cashews, 1 tbsp of melon seeds, 1 tsp of finely chopped coriander stems, and 2 green cardamoms.
- Stir everything together and cook on medium heat for about 15 minutes, or until the onions are soft.
- Once the onions are soft, turn off the heat and drain the excess water. Let the mixture cool down to room temperature.
- Once cooled, transfer it to a blender and grind it into a smooth paste. Set this paste aside.
Step 2: Fry the Cashews and Paneer
- Now, heat 3 tbsp of oil in a pan. Add ¼ cup of cashews to the hot oil and fry them until they turn light golden brown.
- Once fried, remove the cashews from the pan and set them aside.
- Next, in the same pan, add 200 gm of cubed paneer and stir-fry for 2 minutes until the paneer becomes slightly golden. After frying, place the paneer in a bowl of water to keep it soft
Step 3: Prepare the Gravy
- Next, heat 1 tsp of ghee and 1 tsp of butter in a separate pan.
- Once the ghee and butter are hot, add ½ tsp of cumin seeds, 1 green cardamom, a small piece of cinnamon stick, and 1 bay leaf. Let these ingredients sizzle for a few seconds
Then, add 2 slit green chilies and 1 tsp of ginger-garlic paste. Sauté the mixture for a few seconds until it becomes aromatic.
After that, add 1 cup of tomato paste to the pan and cook for about 7-8 minutes, until the oil starts to separate from the paste.
Step 4: Add the Spices
Once the oil separates, add ¼ tsp of turmeric powder, ½ tsp of red chili powder, ½ tsp of coriander powder, 1/8 tsp of cumin powder, and ½ tsp of kasoori methi.
- Stir everything well and sauté for 2-3 minutes to cook the spices.
- This step will help to bring out the full flavors of the spices
Step 5: Add the White Paste
- Now, add the prepared white paste to the pan. Mix it well with the other ingredients in the pan.
- Let the gravy cook for 5 minutes to blend the flavors
Step 6: Combine Cashews and Paneer
- Once the gravy is ready, add the fried cashews and paneer cubes to the pan.
- Next, add salt to taste and ¼ tsp of garam masala. Mix everything well to combine.
- After that, add hot water as needed to adjust the consistency of the gravy.
- Stir everything together, and once the gravy starts to boil, reduce the heat to low.
Cover the pan with a lid and let it simmer for 10 minutes.
- Finally, garnish the Kaju Paneer Masala with fresh coriander leaves. Serve it hot with naan, roti, or rice. Enjoy your restaurant-style Kaju Paneer Masala, made easily at home!
Tips for Best Results
- Use fresh paneer: Fresh, homemade paneer works best for a soft and rich texture. If using store-bought paneer, soak it in warm water for 10 minutes to soften it.
- Fry cashews lightly: Over-frying cashews can make them too crunchy. A light golden color is enough to enhance the flavor.
- Adjust spice levels: For a milder taste, reduce the amount of red chili powder and green chilies.
- Blend the white paste well: A smooth paste ensures a creamy and lump-free gravy.
- Simmer for a rich taste: Allowing the gravy to simmer for 10 minutes enhances its flavors and gives it a restaurant-like texture.
- Use butter and ghee: A combination of butter and ghee adds an authentic taste and aroma.
- Kasoori methi for extra flavor: Crush kasoori methi between your palms before adding it to release its aroma.
- Serve fresh and hot: This dish tastes best when served immediately with hot naan or jeera rice.

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