Shahi Paneer Recipe

Soak nuts & saffron

Place cashews in warm water for 15 minutes to soften. If using saffron, put threads in 1 tablespoon warm milk and set aside.

Blend onion-tomato-cashew paste

Drain cashews. In a blender, combine chopped onion, chopped tomato, drained cashews, ginger, garlic and green chili (if using). Add about 1/4 cup water and blend to a smooth, fine paste. Scrape down sides and add up to another 2 tablespoons water if needed; aim for a smooth, lump-free consistency.

Cube paneer if not pre-cut. If you prefer softer paneer, soak cubes in warm milk for 10 minutes then drain before using.

Temper whole spices

Heat ghee or oil in a deep skillet over medium heat. Add bay leaf, cardamom pods, cloves and peppercorns. Sauté 30-40 seconds until fragrant but not browned.

Cook paste

Add the onion-tomato-cashew paste to the pan. Cook on medium-low, stirring frequently, for 8–10 minutes until the raw smell disappears and the mixture thickens and leaves the sides of the pan. Stir to avoid sticking; reduce heat if it browns too quickly.

Spice it

Add ground coriander, turmeric, red chili powder and salt. Cook 1–2 minutes, stirring, to toast the spices and remove any raw edge.

Add liquids

Pour in milk and water (about 1/2 cup each combined as listed) and stir to combine. Bring to a gentle simmer and cook 3–4 minutes to meld flavors and slightly thicken the gravy.

Add cream & paneer

Reduce heat to low. Stir in fresh cream and soaked saffron with its milk (if using). Gently add paneer cubes and combine, taking care not to break them. Simmer on very low for 4–5 minutes so paneer heats through and absorbs flavors.

Adjust seasoning & texture

If the gravy is too thick, add up to 2–3 tablespoons warm water or milk to reach desired consistency. Stir in sugar, garam masala and crushed kasuri methi. Taste and adjust salt, sugar or chili as needed. Finish with butter for shine and richness.

Rest & garnish

Turn off heat and let the curry rest 2–3 minutes so flavors meld. Sprinkle chopped coriander and a squeeze of lemon if using. Remove bay leaf and whole spices if desired.

For a light golden crust, quickly shallow-fry paneer cubes in 1 tablespoon oil or butter for 1–2 minutes per side before adding to the gravy. Drain on paper towel.