Shahi Paneer is a rich, creamy North Indian curry made with soft paneer cubes simmered in a luxurious, mildly spiced gravy. The word “Shahi” means royal, and the dish truly lives up to its name.
It traces its origins back to Mughlai cuisine, from the royal kitchens of the Mughal Empire, where dishes were prepared using rich ingredients like nuts, butter, cream and aromatic spices. Over time, Shahi Paneer became a beloved part of North Indian cuisine, especially known for its silky texture and indulgent flavours.
Shahi Paneer has to be one of my favourite ways to cook paneer, and it is my ultimate go-to when I want to make something fancy, rich and comforting — especially when I’m cooking for guests. There’s just something about that velvety gravy and soft paneer that makes it feel instantly special.
In my version, I’ve swapped cream with a cashew-based paste added directly into the gravy. I personally love using cashews because they create a more creamy and silky texture than cream itself, while also adding a subtle nuttiness that brings an extra layer of depth to the dish.
Why This Recipe Works
Creamy without cream:
The cashew paste creates a naturally rich, silky texture.Added depth of flavour:
Cashews add a subtle nuttiness that elevates the dish.Balanced flavours:
Warm spices and tomatoes create a mildly spiced, comforting curry.Simple yet luxurious:
No complicated steps, yet the result feels indulgent and restaurant-style.
Ingredients
For the Base Masala:
- 2 tbsp oil
- 1 bay leaf
- 1 tsp cumin seeds
- 1 tsp pepper
- 1 inch cinnamon
- 3 cardamom pods
- ½ tsp cloves
- 1 inch ginger
- 4 cloves garlic
- 2 onions, sliced
- 2 tomatoes, sliced
- ¼ cup yoghurt
For the Gravy:
- 2 tbsp butter
- 2 tbsp oil
- ½ tsp turmeric
- 1 tsp chilli powder
- 1 tsp coriander powder
- ½ tsp cumin powder
- Salt to taste
- 15 – 20 cashews (soaked & ground into a paste)
- 200–250 g paneer, cubed
- 2 tbsp kasuri methi, crushed
- 2 tbsp coriander, chopped
Instructions
Step 1: Prepare the Base
Heat oil in a pan and add bay leaf, cumin seeds, pepper, cinnamon, cloves and cardamom. Sauté until aromatic.
Step 2: Cook Aromatics
Add ginger, garlic and onions. Cook until soft and lightly golden.
Step 3: Add Tomatoes
Add tomatoes and cook until soft and mushy.
Step 4: Blend
Let the mixture cool, then blend with yoghurt into a smooth paste. Strain for a silkier texture if desired.
Step 5: Prepare the Gravy
Heat butter and oil in a pan. Add turmeric, chilli powder, coriander powder and cumin powder. Sauté on low heat.
Step 6: Cook the Masala
Add the prepared puree and cook until thick and oil starts to separate.
Step 7: Add Cashew Paste
Add the soaked cashew paste and mix well. Cook for a few minutes until the gravy turns rich, creamy and silky.
Step 8: Add Paneer
Add paneer cubes and mix gently.
Step 9: Simmer and Finish
Let the curry simmer for about 5 minutes so the paneer absorbs the flavours. Finish by adding crushed kasuri methi and fresh coriander, then mix gently and serve.
Serving Suggestion
Serve this warm and creamy Shahi Paneer with tandoori roti, chapattis, naan or a bowl of fluffy rice for a wholesome and satisfying meal.
Perfect for Special, Comforting Meals
This version of Shahi Paneer is my go-to when I want something indulgent yet homemade. The cashew-based gravy gives it that signature richness and a beautifully smooth texture, making it perfect for both everyday meals and special occasions.
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