Shahi Paneer Recipe

Prepare pan and whole spices

Heat a heavy-bottomed pan over medium heat. Add 2 tbs ghee. When hot, add bay leaf, green cardamom, cloves and cinnamon stick and fry for 30–45 seconds until fragrant.

Soak nuts and saffron

While the pan heats, place 1/3 cup cashews and 2 tbs blanched almonds in a small bowl and cover with hot water. Let soak 15–20 minutes until soft. In a separate small bowl, crush 8 saffron strands into 2 tbs warm milk and set aside to infuse.

Fry some nuts and raisins for garnish

After the whole spices have scented the ghee (from previous section), push them to the side of the pan, add the soaked cashews/almonds (drain first) and 30 g raisins and shallow-fry for 1–2 minutes until the raisins puff and the nuts are lightly golden. Remove these fried nuts and raisins to a small plate and reserve for garnish. Keep the whole spices in the pan.

Prepare paneer

Cut 400 g paneer into 2 cm cubes. Optionally, heat 1 tsp ghee in a small skillet and lightly shallow-fry the paneer cubes until the edges are golden (1–2 minutes per side). Remove and set aside. (If you prefer softer paneer, skip frying and add directly to the gravy later.)

Fry onions

To the same pan with whole spices and remaining ghee, add the chopped onions (2 cups). Fry over medium-low heat, stirring frequently, until deep golden brown and caramelized (20–25 minutes). This is important for the rich 'shahi' flavor—don’t rush; lower heat will caramelize rather than burn.

Add aromatics

Add 2 tbs ginger-garlic paste and 1 green chili (slit) to the onions and fry 2–3 minutes until raw smell disappears.

Cook tomatoes

Add 1 cup chopped tomatoes and cook until the tomatoes break down and most of the moisture has evaporated and oil or ghee begins to separate from the mixture (6–8 minutes).

Make the nut-onion-tomato paste

Transfer the fried onion-tomato mixture to a blender. Drain the soaked cashews and almonds and add them to the blender. Add about 3–4 tbs of the 200 ml milk (or enough to help blending) and blend to a very smooth, velvety paste. Scrape sides and blend until uniform. (If needed add a little more milk to achieve a smooth consistency.)

Return paste to pan and spice it

Return the paste to the pan. Add 0.5 tsp turmeric, 1 tsp red chili powder, 1 tbs coriander powder, 1 tsp cumin powder and salt to taste. Cook the paste on medium heat for 5–7 minutes, stirring occasionally so it doesn’t stick; the raw spice smell should disappear and the mixture should thicken slightly.

Build the gravy

Slowly stir in the remaining whole milk (approx 200 ml) and 150 ml heavy cream into the pan, mixing to a smooth, creamy gravy. Add 1 tbs sugar to balance acidity. Bring to a gentle simmer—do not boil vigorously, or the cream may split.

Add saffron and simmer

Stir in the saffron-infused warm milk and simmer the gravy on low heat for 6–8 minutes so the flavors meld and the gravy thickens slightly. Taste and adjust salt or sugar as needed.

Finish with paneer and spices

Gently add the reserved paneer cubes to the gravy and simmer on very low heat for 4–5 minutes so the paneer warms through and absorbs flavor. Sprinkle 1 tsp garam masala and 1 tbs crushed kasuri methi; stir gently. If the gravy is too thick, add 2–3 tbs warm milk to reach desired consistency.

Garnish

Turn off the heat. Stir in 2 tbs chopped fresh cilantro. Top the Shahi Paneer with the fried nuts and raisins reserved earlier. Drizzle a little extra cream (1–2 tbs) if desired for a glossy finish.

Rinse and cook rice

Rinse 1.5 cups basmati rice under cold water until the water runs clear. Combine rinsed rice, 3 cups water and 0.5 tsp salt in a saucepan. Bring to a boil uncovered, then reduce heat to low, cover and simmer 12–15 minutes until rice is tender and water is absorbed. Let rest 5 minutes, then fluff with a fork.

Serve

Serve the hot Shahi Paneer with steamed basmati rice. Offer extra cream or chopped cilantro at the table.