This punjabi restaurant style shahi paneer is a delicious way to introduce more vegetarian meals into your weekly rotation. With a few easy shortcuts, this shahi paneer recipe comes together in 30 minutes. This recipe is short on time, but not short on flavour!

Shahi paneer is one of the most popular dishes ordered at Indian restaurants - aside from butter chicken, of course.
If you have never had shahi paneer before, the sauce is very similar to butter chicken sauce, with a little twist. The sauce has cashews blended in it, to add an extra layer or richness and creaminess.
This recipe goes perfectly with onion pulao, plain white rice, or even your favourite store-bought naan. Round out this delicious vegetarian meal with classic kachumber salad, for an extra bite of freshness!
Jump to:
Ingredients
- Paneer: Paneer is a semi-soft cheese, with a texture like firm tofu. You can generally find it in large bricks, which you can cut to your desired shape. Alternatively, pre-cubed paneer will work.
- Onion: I recommend using a regular yellow onion, or a sweet onion.
- Ginger & garlic paste: You can purchase pre-ground ginger & garlic paste from the grocery store. If not, you can use fresh ginger and garlic, as the sauce will be blended.
- Cashews: I recommend using unsalted cashews, so you can control the salt on your own.
- Tomato passata: Tomato passata is essentially pureed and strained tomatoes. They are unseasoned, but help skip the step of cooking down fresh tomatoes and straining the skins and seeds out.
- Heavy whipping cream: Heavy whipping cream will give the sauce a silky, creamy finish.
- White sugar: Sugar cuts the acidity the tomato puree, for a balanced sauce.
- Spices and seasonings: You will need a cinnamon stick, kashmiri red chilli, garam masala, red chilli flakes, and salt.
A full list of ingredients with measurements is located on the recipe card, below.
Instructions
START WITH...
Collecting all your ingredients - This will make cooking so much easier. Gather all the spices you will need, and keep them nearby.
Cutting your ingredients - Chop your onions finely, and cut your paneer into your desired size. I did triangle pieces by sitting the paneer into slices, and then diagonally.
Saute the onions and ginger/garlic paste in a large skillet in a tablespoon of olive oil, over medium-high heat.
Once the onions are translucent, add the cashews and let them lightly toast. Add in the spices and cinnamon stick to the skillet and combine with the onions and cashews.
Once the spices are fragrant and toasted (this should take approximately 2-3 minutes), add in the tomato passata. Cook through for another 2-3 minutes.
Remove the cinnamon stick, and transfer the sauce to a blender with water. Blend until all the ingredients are smooth.
Transfer the sauce back to the skillet over medium heat, and add sugar and salt. Add the heavy whipping cream, and combine.
Add the paneer to the pan, and heat for 2-3 minutes.
Expert Tip
To avoid your paneer from crumbling, try not to cut the paneer into thin slices. You want the paneer to be sturdy enough that it does not crumble as it cooks. Alternatively, for some extra texture you can lightly fry the paneer!
Substitutions
- Paneer: You can use tofu in place of paneer.
- Heavy whipping cream: You can use half and half in place of heavy cream for a lighter twist.
- Red chilli flakes: You can use red chilli powder in place of flakes.
- Kashmiri red pepper: You can use sweet paprika
Variations
- Meat version: Swap the paneer with chicken tikka for a meat version of this dish. The sauce is almost the same as butter chicken!
Equipment
This is what I used to make this recipe - Please be mindful that different equipment and cooking utensils may yield varying results. Most of my favourite equipment can be found on my storefront.
- Large skillet
- Blender
Storage
Looking for more meal inspiration? Subscribe to our newsletter for weekly recipe roundups, straight to your inbox! Follow us on our socials, on Instagram, Pinterest and Facebook! If you try one of our recipes, let us know how it was by rating and commenting!
Restaurant Style Shahi Paneer
Ingredients
- 12 oz Paneer cut into triangles, or your desired shape
- ½ Yellow onion diced
- 1 tablespoon Ginger & garlic paste
- ¼ cup Cashew nuts
- 1 Cinnamon stick
- 2 teaspoon Garam masala
- 2 teaspoon Kashmiri red pepper
- 1 teaspoon Red chilli flakes
- 1 cup Tomato passata
- 1 cup Water
- 1 tablespoon Sugar
- ¼ cup Heavy cream
Equipment
Instructions
- Saute onions and garlic: Saute the onions and ginger/garlic paste in a large skillet in a tablespoon of olive oil, over medium-high heat for 2 minutes.½ Yellow onion, 1 tablespoon Ginger & garlic paste
- Add aromatics: Once the onions are translucent, add the cashews and let them lightly toast. Add in the spices and cinnamon stick to the skillet and combine with the onions and cashews.¼ cup Cashew nuts, 1 Cinnamon stick, 2 teaspoon Garam masala, 2 teaspoon Kashmiri red pepper, 1 teaspoon Red chilli flakes
- Make the sauce: Once the spices are fragrant and toasted (this should take approximately 2-3 minutes), add in the tomato passata. Cook through for another 2-3 minutes.1 cup Tomato passata
- Blend: Remove the cinnamon stick, and transfer the sauce to a blender with water. Blend until all the ingredients are smooth.1 cup Water
- Finish the sauce: Transfer the sauce back to the skillet over medium heat, and add sugar and salt. Add the heavy whipping cream, and combine.1 tablespoon Sugar, ¼ cup Heavy cream
- Add paneer: Add the paneer to the pan, and heat for 2-3 minutes.12 oz Paneer
Notes
- To avoid your paneer from crumbling, try not to cut the paneer into thin slices. You want the paneer to be sturdy enough that it does not crumble as it cooks. Alternatively, for some extra texture you can lightly fry the paneer!
Selena
This actually tasted just like my favorite Indian restaurant - I was so impressed with the flavor!!
Sunena Anand
Love to hear that, Selena!