Note: doubled spices, added cayenne

Ingredients

  • 1 Tbsp Oil
  • 1 cups cubed onions, 3 medium
  • 1.5 cups finely chopped tomatoes (3 large tomatoes, remove seeds)
  • salt as needed
  • 10 to 12 cashew nuts
  • 1 tsp coriander powder
  • 1 1/2 tsp garam masala powder
  • 1 tsp kashmiri red chilli powder (adjust for best color)
  • 1⁄2 tsp sugar
  • 1 1⁄2 Tbsp Butter
  • 2 bay leaf
  • 6 green cardamom
  • 2 small cinnamon stick
  • 6 cloves
  • 1 1/2 tsp ginger paste
  • 1 1/2 tsp garlic paste
  • 16 oz paneer
  • 1 tsp kasuri methi
  • 1/4 c cream
  • pinch cayenne pepper
  • few coriander leaves for garnish

Instructions

  1. Heat a pan with oil, fry onions until they turn transparent.
  2. Fry tomatoes with salt for 3 minutes. Cook covered till the mixture turns soft and mushy.
  3. Add garam masala, coriander powder, cashews, red chili powder and sugar if using. Fry until the mix gets roasted well and it should begin to leave the sides of the pan. Switch off the heat
  4. When the mixture cools, blend it with 1 cup water in a blender to very smooth
  5. Add butter to the same pan, add dry spices and fry for one to 2 minutes
  6. Pour the blended puree, add red chili powder, if desired 1⁄4 to 1⁄2 cup of water. Cook for 4 minutes. Let the gravy reach the desired consistency before you add paneer.
  7. Add paneer kasuri methi. Stir well and cook for 3 minutes. Can add cream if desired.
  8. Transfer butter paneer to a serving bowl and garnish with cream or crushed pepper or coriander leaves.

Credit http://indianhealthyrecipes.com/paneer­butter­masala­restaurant­style/