How to Make Rice with Paneer Butter Masala (Traditional & Healthy Version)

Rice with Paneer Butter Masala is a beloved North Indian vegetarian dish, celebrated for its rich flavors and creamy texture. Originating from Punjab, this classic combines soft paneer cubes simmered in a velvety tomato-based gravy, infused with aromatic spices and a hint of butter, served alongside steamed basmati rice. It's a staple in many Indian homes and featured in restaurant menus across the country. Paneer Butter Masala is known for its indulgent taste, but with a health-conscious approach, you can enjoy all the authentic flavors while keeping your meal nutritious. The subtle spices, fresh paneer, and fluffy rice create a comforting meal that is both satisfying and easy to digest. This dish is perfect for festive occasions, family gatherings, or as a hearty snack during the day. Pairing with rice makes it a wholesome option, offering energy and protein in every bite. Indian cuisine is deeply rooted in culture, and dishes like Paneer Butter Masala reflect the warmth and hospitality of North India. Enjoying this meal is not just about taste—it’s about experiencing the rich tradition and culinary artistry of the region. For those tracking calories or looking for balanced nutrition, this recipe offers a guilt-free way to savor an iconic Indian snack.

35 min total2 servingsmedium400 kcal / 100g

Ingredients

  • Basmati rice
    1 cup Basmati rice (preferably aged)
  • Paneer
    200 grams Paneer (cubed, fresh)
  • Tomato
    2 medium Tomato (finely chopped)
  • Onion
    1 medium Onion (finely chopped)
  • Ginger-garlic paste
    1 teaspoon Ginger-garlic paste
  • Low-fat yogurt
    2 tablespoons Low-fat yogurt (for creaminess)
  • Cashew nuts
    6-8 Cashew nuts (soaked and ground)
  • Butter
    1 teaspoon Butter (use unsalted for health)
  • Garam masala
    1/2 teaspoon Garam masala
  • Red chilli powder
    1/2 teaspoon Red chilli powder (adjust to taste)
  • Turmeric powder
    1/4 teaspoon Turmeric powder
  • Coriander powder
    1/2 teaspoon Coriander powder
  • Salt
    to taste Salt
  • Fresh coriander leaves
    2 tablespoons Fresh coriander leaves (chopped for garnish)

Step-by-step instructions

Step 1: Wash the basmati rice thoroughly and soak for 15 minutes
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15 min

Step 1 · Wash the basmati rice thoroughly and soak for 15 minutes

Wash the basmati rice thoroughly and soak for 15 minutes. Cook the rice with double the amount of water until fluffy. Drain and keep aside.

Step 2: Heat a nonstick pan and melt the butter
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Step 2 · Heat a nonstick pan and melt the butter

Heat a nonstick pan and melt the butter. Add chopped onions and sauté until translucent.

Step 3: Add ginger-garlic paste and sauté for another minute until aromatic
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Step 3 · Add ginger-garlic paste and sauté for another minute until aromatic

Add ginger-garlic paste and sauté for another minute until aromatic.

Step 4: Add chopped tomatoes and cook until soft
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Step 4 · Add chopped tomatoes and cook until soft

Add chopped tomatoes and cook until soft. Blend in the soaked cashew nuts to make a smooth paste.

Step 5: Add turmeric
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Step 5 · Add turmeric

Add turmeric, red chilli powder, coriander powder, and salt. Mix well and cook the masala until oil separates.

Step 6: Lower the heat
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Step 6 · Lower the heat

Lower the heat, add low-fat yogurt, and stir continuously to avoid curdling. Add paneer cubes and garam masala.

Step 7: Simmer the gravy for 3 minutes so paneer absorbs the flavors
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3 min

Step 7 · Simmer the gravy for 3 minutes so paneer absorbs the flavors

Simmer the gravy for 3 minutes so paneer absorbs the flavors. Garnish with fresh coriander leaves.

Step 8: Serve hot paneer butter masala with steamed rice on the side
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Step 8 · Serve hot paneer butter masala with steamed rice on the side

Serve hot paneer butter masala with steamed rice on the side.

Why this recipe is healthy

Rice with Paneer Butter Masala is a nutritious snack option for vegetarians, offering high-quality protein, fiber, and essential nutrients. By using minimal butter and substituting cream with yogurt, the fat content is reduced significantly, making it suitable for calorie-conscious eaters. Whole spices enhance metabolism, and fresh ingredients ensure maximum nutrient retention. This recipe fits perfectly into a balanced diet, supporting energy and satiety.

A note on tradition

Rice with Paneer Butter Masala is deeply rooted in Punjabi cuisine, often served during special occasions and family gatherings. Its rich, creamy texture and vibrant flavors make it a festive favorite, especially in North Indian households. Traditionally enjoyed with naan or roti, pairing it with rice is a lighter, everyday alternative. It’s commonly found on restaurant menus and in home kitchens, particularly during celebrations and winter months.

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