Shahi Paneer Gravy is a very rich and creamy gravy made with cottage cheese. The word 'Shahi ' means royal, and 'paneer' is cottage cheese. Indulge in a dish fit for royalty, a delightful creation that derives its name from the rich, luxurious ingredients like nuts, cream, saffron, and exquisite flavors. Once favored by the elite, this dish still tantalizes taste buds. If you're in the mood to treat yourself, it's a must-try!

Why is Shahi Paneer so loved?
Shahi Paneer gravy dates back to Mughal cuisine and gets its royal links from there. It is undoubtedly a delicious and aromatic gravy that is flavorful with all the cream, milk, nuts, and saffron in it, and a popular dish in most North Indian restaurants.
This is also a popular menu item served on special occasions and celebrations. It goes well with Rotis, naan, bhatura made with best bhatura recipe, and rice like Neychoru (Ghee rice) or Vegetable biryani. Paneer is usually loved by kids, and this recipe is a nice change from the regular paneer dishes like paneer tikka masala, easy palak paneer, and the popular vegetarian malai kofta and lauki ka kofta recipe.
Ingredients for Shahi Paneer
- Onion, preferably white onions, as they are milder and sweeter than red onions, chopped into big pieces
- Nuts - Cashews and Almonds, peel the skin after boiling.
- Garlic pods and Ginger
- Yogurt whipped well
- Spices - Coriander powder, Kashmiri chilly powder, turmeric (reduce if you want a whitish look to the gravy), cardamom powder, garam masala (how to make garam masala)
- Whole spices - bay leaf, cloves, green cardamom, black cardamom, cinnamon, shahi jeera
- Paneer (cottage cheese) cut into small cubes or triangles
- Ghee or oil
How to make Shahi Paneer Gravy?
We start by boiling the onions, ginger, garlic, and nuts. Once well-cooked, drain the water to be used later, peel the almond skins, and grind all of the boiled contents into a fine paste.
Heat oil or ghee, add the whole spices and the ground paste, and cook until it leaves oil from the sides. Next, add the spiced powders, salt, and sugar.
Add in the yogurt and stir well, followed by milk or cream. When it simmers, add paneer and mix well, and a few crushed saffron strands.

- Step 1: Boil white onions, ginger, garlic, green chillies, cashews, and almonds until well-cooked.

- Step 2: Drain the water from the cooked contents and keep aside.

- Step 3: Grind the boiled contents to a smooth paste.

- Step 4: Cut the paneer into the desired shape and place it in warm water.

- Step 5: Heat up ghee or oil and add whole spices.

- Step 6: Add the ground paste and cook on medium to high heat until it leaves oil on the sides.

- Step 7: Add the spices mentioned in the recipe and mix well

- Step 8: Add water from Step 2 to form a gravy of desired consistency. Add beaten yogurt, milk, or cream, and paneer and saffron.
If you enjoyed this dish, you may also love other paneer dishes that I have posted Tikka Masala Paneer, Palak Paneer Curry, and Paneer Tikka Masala Restaurant Style.
Recipe FAQs
Shahi refers to royalty, as this dish originated during the era of the Mughals, and the rich ingredients in this dish were befitting to serve royalty.
Soak the paneer in warm water until it is ready to be mixed in the gravy; this will ensure it is soft and remains moist.
The use of minimal spices, such as turmeric and red chili powder, and a gravy made from de-skinned almonds, cashew, white onions, cream, and milk, results in a rich, white gravy. The addition of saffron gives a subtle yellowish tinge.

Related Recipes
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Shahi Paneer Gravy
Ingredients
To Boil
- 1 onion prefer white onion chopped into big pieces
- 8-10 almonds remove skin after boiling
- 8-10 cashews
- 3-4 garlic
- 1 inch ginger
- 1-2 green chillies as tolerated
- 2 cups water
Other ingredients
- 1 pinch saffron
- 1 tsp salt or to taste
- 1 tsp sugar or to taste
- ½ cup yogurt whipped well
- 1 tsp coriander powder
- ½ tsp chilli powder
- ¼ tsp turmeric reduce if you want a whitish look to the gravy
- ¼ tsp cardamom powder
- ¼ tsp garam masala
Whole spices
- 1 bay leaf
- 2-3 cloves
- 2-3 green cardamoms
- 1 black cardamom
- 1 inch cinnamon
- ½ tsp jeera shahi
- 2 tbsp ghee or oil
- 2 - 3 cups paneer chopped ,cubed or cut into triangles
Instructions
- Boil all the ingredients mentioned in the to boil section for about 10 to 15 minutes until they are soft .
- De-skin the almonds and strain the boiled contents into a bowl .Let it cool.
- Grind the contents to a fine paste.
- Soak the cut paneer in warm water to make them soft and moist.
- Heat oil or ghee and add the whole spices.
- Add the ground paste and cook until it leaves oil from the sides.
- Add the spiced powders ,salt and sugar.
- Slowly add in the yogurt and stir continuously.
- Add milk or cream and incorporate well.
- Add paneer (squeeze them from soaked water) and mix well .
- Add crushed saffron strands.
- Simmer for a while .
- Shahi paneer is ready to be enjoyed with white rice or rotis
Notes
- Reduce the turmeric and chili powder for a smooth, white gravy. Let the green chilies provide the perfect amount of spice.
- Use blanched almonds, or you can choose to boil all the contents, fish out the almonds, and de-skin them.
- Reduce the richness of the gravy by adjusting the ghee, milk, and cream used in it.
- Use white onions as they are sweeter and milder than the red onions










Oh yum, Nisha!! I must admit, I'm a sucker for rich, creamy textures. I'm completely unfamiliar with Shahi Paneer until now. Is the cheese flavor very noticeable? Every now and then I definitely like a cheesy indulgence. 🙂
Thank you for sharing this yummy recipe. I've shared it on Pinterest. ♥
Wonderful to know ! Yes this dish is rich and creamy .The cheese or paneer that is used in this dish has a very mild and milky flavor along with a a dense crumbly texture. It goes well with strong spicy flavors as well .Thank you so much for sharing this recipe and your wonderful comments.Appreciate it!
It was perfect the first time. This is very really unique helpful information. I learn so much from you as well! Keep it up.
Thank you so much for the kind comments!
Shahi Paneer is always a hit at parties. I love your step by step recipe!
Thank you Sandhya , yes it is liked by most people at get togethers .
What a delicious curry! Rich & creamy shahi paneer is ideal for children's birthday parties.
Thank you Megala, absolutely kids love this dish!
Looks so delicious! Love the flavors you have here, and the addition of cheese in it.
Thank you Ronit , yes the flavors of this dish are unique .