This Paneer Tikka Masala Restaurant Style Recipe makes a rich, creamy, and delicious gravy with Paneer or cottage cheese. This dish brings the magic of restaurant-style cooking right to your kitchen. With its irresistible gravy and perfectly spiced paneer, it's a timeless favorite that never fails to impress!

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Why is Paneer Tikka Masala so popular?
- The rich, creamy tomato-onion gravy paired with soft paneer creates a flavor that's truly irresistible and restaurant-worthy.
- Pairs beautifully with basmati rice, tandoori roti, or naan, making it a versatile addition to any meal.
- A satisfying vegetarian option that's packed with protein and keeps you full and nourished.
- Made with simple pantry ingredients and easy steps, so you can recreate this classic favorite right at home.
Ingredients
- Paneer Store-bought cut into squares. Soaked in warm water so they remain soft after grilling.
- Onions, tomatoes, and coriander leaves.
- Yogurt, ginger-garlic paste.
- Spices and condiments- red chili powder, garam masala powder, dried fenugreek leaves, salt, and sugar (optional).
- Cashews, Fresh cream (optional).
How to make paneer tikka masala restaurant style?
Restaurant-style Paneer Tikka Masala is a true indulgence, with its luscious gravy and tender paneer. It pairs perfectly with naan, roti, or even fragrant basmati rice. Because of its richness, this dish is often reserved for special occasions or when you're craving something extra special.
We start by grilling the marinated paneer, followed by preparing the rich, spiced gravy, and finally bringing everything together for a perfectly balanced and flavorful dish.
Grilling the Paneer
Marinate the paneer in yogurt, ginger and garlic paste, spices, with bell pepper, onions, and lemon. Grill on a grill pan, like in the recipe Paneer Tikka Pan Grilled, or in the oven or air fryer.

- Step 1: Marinate the Paneer along with bell pepper and onions.

- Step 2: Grill them on a pan, air fryer, or oven.
How to make Paneer Tikka Masala Gravy?
Keep the grilled paneer from step two above aside. Sautee the onions, tomato, and cashews with the spices and grind them to a smooth paste.

- Step 3: Grilled Paneer set aside to go into the gravy in a later step.

- Step 4: Heat butter. Sautee tomatoes, onions, and cashews, let it wilt and cook well, grind to a paste when cool.
In the same pan, add some butter and ginger-garlic paste and saute till the raw smell goes away. Add the tomato, onion, and cashew paste.
Once cooked, adjust any spices needed, like red chili powder or garam masala, salt, and add sugar if using. Adjust the consistency. Next, add the grilled paneer, bell pepper, and onions. Add dried fenugreek leaves and fresh cream. Garnish with chopped coriander leaves.

- Step 5: Heat butter, add ginger-garlic paste, and wait until the raw taste goes away. Add the tomato onion paste. Adjust spices and consistency if required.

- Step 6: Add the grilled paneer and veggies, add powdered fenugreek leaves, and drizzle with fresh cream.

Useful Tips
- Sauté the onions and tomatoes thoroughly before grinding to eliminate any raw taste and bring out their natural sweetness.
- Adding a little sugar is optional, but it helps balance the tanginess of the tomatoes and the warmth of the spices for a more rounded flavor.
- For a richer gravy, drizzle in some cream at the end, or use a smooth paste made from cashews and milk as a substitute.
- Stir in a teaspoon of tomato paste (like the one used in tomato-onion chutney) to enhance both the depth of flavor and the vibrant color.
- Soak paneer cubes in warm water for a few minutes, then gently squeeze out the excess moisture, as this keeps them soft and tender even after grilling.
If you loved this dish, do check out other dishes made with paneer, like Palak Paneer, Malai Kofta, made with the best Malai Kofta recipe, and the recipe for lauki kofta curry
Paneer is high in protein and a great choice for vegetarians. If you are looking for more Paneer dishes, you may like the Shahi Paneer gravy recipe and Easy Palak Paneer.
Recipe FAQs
There's often confusion between Paneer Butter Masala and Paneer Tikka Masala, as both feature rich, creamy gravies made with onions and tomatoes. The main difference lies in how the paneer is prepared. In Paneer Tikka Masala, the paneer is first marinated in a spiced yogurt mixture and then grilled or roasted before being added to the gravy, giving it a smoky, robust flavor. In my version, I also include bell peppers and onions, which add extra texture and a unique depth of flavor.
Paneer Butter Masala, on the other hand, uses plain or lightly fried paneer cubes that are directly simmered in the gravy, resulting in a milder, slightly sweeter dish. For a more restaurant-style appearance, you can optionally add a touch of red food coloring to enhance the vibrant color.
This exact recipe can also be used to make 'Chicken Tikka masala', where the paneer is replaced with cubed boneless chicken pieces. Please read on for the full recipe, and I would highly recommend you try this awesome recipe
Soak the paneer cubes in hot water for 15 minutes before marination, squeeze out all the water, and make sure not to overcook the paneer.
The paneer tikka masala can be stored in a refrigerator in an airtight container for 2 to 3 days.
Related Recipes
If you tried this Paneer Tikka Masala Restaurant Style Recipe or any other recipe on my blog, please leave a 🌟 star rating and a 📝 comment below. I love hearing from you!

Paneer Tikka Masala Restaurant Style Recipe
Ingredients
For Marinating Paneer
- 1 block paneer about 250 gms and cut into small rectangles
- 1 tsp ginger garlic paste
- ½ tsp turmeric powder
- ½ tsp red chili powder
- ¼ tsp garam masala powder
- 1 -2 tbsp Shaan Tandoori masala powder optional
- ½ cup yogurt Greek yogurt can also be used .The yogurt should be completely drained of water.
- ½ green bell pepper diced into big triangles
- ½ onion diced into big triangles
- ½ lemon juice squeezed
- 1 tsp salt or to taste
For Roasting and Grinding
- 1 large onion
- 3 large tomatoes
- 10-12 cashews
- 1 tsp Red chilli powder Kashmiri
- ¼ tsp garam masala
- ¼ tsp salt
For Gravy
- 2 tbsp butter
- 1 tbsp ginger garlic paste
- 1 tsp sugar
- 1 tsp salt or to taste
- 3 tbsp cream
- ½ tsp kasuri methi (dry fenugreek leaves) crushed with your palms
- ½ cup coriander leaves finely chopped
- 2 tbsp fresh cream optional
Instructions
Paneer Marination
- Make a mixture of ingredients in the "For Marinating Paneer" section in a medium bowl.
- Add the cut paneer pieces into it .
- Marinate for 15 to 20 minutes ,the longer the better.
- Grill the paneer and veggies and keep them aside.
Roasting and Grinding for Gravy
- In a medium sized pan , heat up some butter .
- Add the cashews, chopped onions and tomatoes .
- Sautee and fry till it is wilted, browned and cooked well.
- Add red chilly powder and garam masala spice blend.
- Add salt to taste , cool and grind to a smooth paste.
To Make the Gravy
- Heat some butter or oil in the same pan used to roast the tomatoes and onion gravy.
- Add ginger garlic paste .
- Sautee till the raw taste goes away.
- Add the onion tomato gravy and mix well.
- Add red chilly powder ,sugar, salt and garam masala.
- Cook till the oil is released from the sides .
- Add water as required to loosen up the gravy and adjust the consistency.
- Add paneer pieces and cook for a while.
- Add cream and adjust salt as required.
- Add the dried fenugreek leaves and mix well.
- Add some fresh cream if using.
- Switch off flame and add the chopped coriander leaves.
- Paneer Tikka Masala is ready to be served .
Notes
- Sauté the onions and tomatoes thoroughly before grinding to eliminate any raw taste and bring out their natural sweetness.
- Adding a little sugar is optional, but it helps balance the tanginess of the tomatoes and the warmth of the spices for a more rounded flavor.
- For a richer gravy, drizzle in some cream at the end, or use a smooth paste made from cashews and milk as a substitute.
- Stir in a teaspoon of tomato paste (like the one used in tomato-onion chutney) to enhance both the depth of flavor and the vibrant color.
- Soak paneer cubes in warm water for a few minutes, then gently squeeze out the excess moisture, as this keeps them soft and tender even after grilling.










Love how creamy and spiced this is without being too heavy. The paneer adds a great texture to it.
This paneer tikka masala is a rich, creamy, and flavor-packed Indian classic that’s perfect for a comforting meal.
This was wonderful! Felt like we were getting take out!
This was so creamy and full of deep, savory flavor. The paneer held its texture beautifully in the sauce, and it was a huge hit served with some warm naan on the side.
The recipe worked exactly as written, thanks for sharing it. It's my first time making panner tikka masala and it turned out amazing!
This sounds and looks so delicious! Thank you for sharing this recipe!
Many Thanks Leah, it sure is a wonderful recipe and I get compliments every time I make it!
This Paneer tikka is a good alternative for vegetarian and your pictures looks so good. Thank you for sharing this post.
Yes indeed Paneer is a great option for vegetarians . Glad you liked the pictures .Thank you so much for stopping by!
Mmmm this looks so good! I've never tried making tikka masala at all myself, unless you count something out of a jar (it's bad, I know). I've never tried the paneer version though, sounds delish and now my tummy's growling 😄
Caz xx
You are absolutely right Caz, the gravy out of the jar is unfortunately not comparable to the one made at home . It's really worth trying and hope you get a chance to try it out! Thank you so much for stopping by.
Looks Absolutely delicious Nisha!
Thank you Smitha, indeed a very delicious dish.