This Shahi Paneer is North Indian style recipe with soft paneer cubes in gravy made with tomatoes, cashews, and spices. It has the creaminess and richness of yogurt and cream and is full of flavors with whole and powdered Indian spices.
Creamy and Delicious Shahi Paneer
Traditionally, Shahi Paneer is a Mughlai-style recipe with white gravy and no tomatoes. It is very heavy, rich, and on the sweeter side. But the recipe I am sharing with you is North Indian-style, made with tomatoes, cashews, yogurt, and cream. It is lighter, less fatty, and absolutely delicious, using pantry staple ingredients. This Shahi Paneer recipe is rich, creamy, and flavorful but without onion and garlic. Its smooth, velvety gravy is moderately spicy with a slight hint of sweetness. I did not add a ton of cream but instead added yogurt to the gravy, which is why the gravy is rich, creamy, and still light.
Ingredients
How To Make Shahi Paneer Step-by-Step
Making The Shahi Paneer Gravy
Heat oil and butter in a pan or wok. Add cumin seeds, bay leaf, peppercorns, Cinnamon sticks, green and black cardamoms, and cloves. Stir and saute for a minute or until the spices are aromatic.
Then add chopped tomatoes, ginger, green chili, cashews, melon seeds, dried red chili, and salt.
Mix well and cook the mixture on medium heat for 8-10 minutes until the tomatoes are soft and mushy. Stir often.
Add ½ cup of water, stir well, cover the lid, and continue cooking on low-medium heat for 8-10 minutes. Stir occasionally.
Turn off the heat and let the gravy mixture cool down at room temperature. Once it is cooled, remove the bay leaf, cinnamon stick, and black cardamom.
Then, transfer the mixture to the blender jar and blend into a smooth puree; add a little water if needed. Strain the gravy using a fine sieve to make it smooth and velvety. Set it aside.
Preparing The Yogurt Mixture
In a bowl, take yogurt, turmeric powder, coriander powder, cumin powder, and Kashmiri red chili powder. Whisk until everything is combined, and the mixture is smooth.
Making The Shahi Paneer
Heat butter or oil in a pan or wok; lower the heat, and add ½ teaspoon Kashmiri red chili powder. Stir quickly and immediately pour the prepared yogurt mixture.
Stir continuously and cook the yogurt mixture on low heat until it is cooked and the oil is separated for about 4-5 minutes.
Add the prepared gravy, stir well, and add water if required to adjust the desired consistency. Cook the gravy on medium-low heat, frequently stirring, for 8-10 minutes.
Then, add Paneer cubes, sugar, garam masala, and salt to taste. Stir well and continue cooking on low-medium heat for 4-5 minutes.
Finally, add Kasoori methi, coriander leaves, and cream. Stir well and cook for a minute. Taste and adjust the seasonings if required.
Turn off the heat and transfer the Shahi Paneer into a serving bowl. Garnish with a drizzle of cream and chopped coriander leaves.
Serving Suggestions
Serve this delicious curry with any Indian flatbread of your choice. It goes well with Roti, Tandoori Roti, Naan, Kulcha, Paratha, or this Whole Wheat Kulcha (No Yeast) / Kulcha On Tawa. You can also serve it with plain rice, Jeera rice, or Pulao. If you want to make a festive meal, pair Shahi Paneer with other Dal preparations and accompaniments like Boondi Raita, Pomegranate Raita / Anar Raita, or Cucumber Raita.
More Paneer Curries
Recipe Card
How To Make My Store-Bought Paneer Soft?
Place the whole block of paneer or paneer cubes into a ziplock bag or a container. Submerge the plastic bag or container of paneer in hot water. Leave it in hot water for at least 20 minutes. Meanwhile, if the water gets cold, replace it with hot water. You can also directly place the paneer block or cubes into hot water and leave it for 20 minutes. Then, drain the water completely before adding it to the gravy.
