This Shahi Paneer is a North Indian Paneer curry- creamy, smooth, and addictive gravy that goes well with roti, naan, or rice! Trust me, you won’t miss the restaurant one as my punjabi version is much better than it.

Growing up in a Punjabi family means the family dinners always have a rich and creamy paneer gravy sitting next to jeera rice or parathas. For vegetarians, Paneer is the first choice when serving guests.
It can be paneer tikka as a snack or paneer tikka masala, paneer jalfrezi, palak paneer, methi malai paneer, or saag paneer in winters.
For me personally, shifting from a non-vegetarian to a vegetarian diet at the age of 14, paneer was my savior.
This recipe of Shahi Paneer is my go-to recipe for special occasions and my family never eats it from the restaurant- Totally a no-fuss recipe, simple easy steps, and perfected over the years!
My Punjabi version of Shahi Paneer is not a sweet gravy but rather a spicy paneer gravy!
Dunked in cashew, onion, and tomato gravy, paneer slowly absorbs the flavor from the Indian whole spices and is mildly spicy. Team it with roti or jeera rice for a hearty lunch or dinner.
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Ingredients
See the recipe card for the exact measurements of the ingredients.


- Paneer
- Tomatoes
- Onion
- Cashews
- Ginger and Garlic
- Ghee
- Green Chili
- Indian Spices-Bay Leaf, whole black pepper, Cinnamon Stick, cardamom, Cloves, Red Chili Powder, paneer masala (I use GM Foods brand)
How To Make Punjabi Style Shahi Paneer
Step 1 Wash, Chop and Boil
Wash and roughly chop onions, tomatoes, ginger and garlic. In a pressure cooker, add chopped onions, tomatoes, cashews, whole spices, ginger and garlic. Add water to cover all the chopped veggies 1 inch above.
Pressure cook for 2 whistles on full flame and simmer for 5 minutes.




Step 2 Make The Gravy for Paneer
Once the cooker cools off, drain the water in a separate bowl and sieve the boiled onion tomato. Take out the bay leaf and cinnamon as they are hard to blend.
Blend everything else. Make sure they are cool and not hot. Blend to make a smooth paste.




Step 3 Temper It
In a wok or same cooker, add ghee, add the bay leaf and cinnamon stick. Pour the cashew tomato paste from the above step. Let it simmer on slow flame. Add salt and spices. Pour the water from the boiled veggies.
Cook on slow flame for 3-5 minutes till the gravy is thickened.
Add paneer cubes and cook fro another 2 minutes. You may add lemon juice or amchur and garam masala at the last.






Note: I have skipped adding cream or malai. Feel free to add the fresh cream from milk or milk at this stage.
Step 4 Serve It
The Easy Shahi Paneer is ready. Serve It with naan or jeera rice for a delicious lunch!

Expert Tips
- I have skipped adding sugar as I like the spicy flavor more. If you don’t like spicy, reduce the chili and add sugar to the gravy when cooking it.
- Make sure to cool off the boiled cashew onion tomato before blending.
- Don’t add water while blending. First, blend it without water to make a smooth paste. You may add water little by little as and when needed.
More Paneer Recipes:
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Shahi Paneer- Punjabi Style
This Shahi Paneer is a North Indian Paneer curry- creamy, smooth, and addictive gravy that goes well with roti, naan, or rice! Trust me, you won’t miss the restaurant one as my punjabi version is much better than it.
Equipment
-
1 Pressure Cooker
-
1 Blender
-
1 wok heavy bottomed
Ingredients
- 2 cups Paneer paneer cubes (300 gm paneer)
- 3 medium Tomatoes
- 2 small Onion
- 1.5 tablespoon Cashews
- 1 teaspoon grated Ginger
- 3 cloves garlic
- 1 tablespoon Ghee
- 1 small Green Chili
- 1 small bay leaf
- 4-5 piece whole black peppercorns
- 1 small cinnamon stick
- 2 pieces cloves
- 2 teaspoon red chili powder adjust the heat (add sugar and reduce chili for sweet gravy)
- 2 teaspoon Paneer masala GM Brands
- salt as taste
- 2-3 cups water
Instructions
-
Wash and roughly chop onions, tomatoes, ginger and garlic. In a pressure cooker, add chopped onions, tomatoes, cashews, whole spices, ginger and garlic. Add water to cover all the chopped veggies 1 inch above.
-
Pressure cook for 2 whistles on full flame and simmer for 5 minutes.
-
Once the cooker cools off, drain the water in a separate bowl and sieve the boiled onion tomato. Take out the bay leaf and cinnamon as they are hard to blend.
-
Blend everything else. Make sure they are cool and not hot. Blend to make a smooth paste.
-
In a wok or same cooker, add ghee, add the bay leaf and cinnamon stick. Pour the cashew tomato paste from the above step. Let it simmer on slow flame. Add salt and spices. Pour the water from the boiled veggies.
-
Cook on slow flame for 3-5 minutes till the gravy is thickened.
-
Add paneer cubes and cook fro another 2 minutes. You may add lemon juice or amchur and garam masala at the last.
-
The Easy Shahi Paneer is ready. Serve It with naan or jeera rice for a delicious lunch!
Notes
- I have skipped adding sugar as I like the spicy flavor more. If you don’t like spicy, reduce the chili and add sugar to the gravy when cooking it.
- Make sure to cool off the boiled cashew onion tomato before blending.
- Don’t add water while blending. First, blend it without water to make a smooth paste. You may add water little by little as and when needed.
-
Nutrition Facts Serving size: bowl Servings: 5 Amount per serving Calories 270 % Daily Value* Total Fat 19.1g 24% Saturated Fat 11.5g 57% Cholesterol 55mg 18% Sodium 340mg 15% Total Carbohydrate 11.2g 4% Dietary Fiber 2.6g 9% Total Sugars 3.7g Protein 15.1g Vitamin D 6mcg 32% Calcium 420mg 32% Iron 1mg 8% Potassium 314mg 7% *The % Daily Value (DV) tells you how much a nutrient in a food serving contributes to a daily diet. 2,000 calorie a day is used for general nutrition advice.