How to Make Paneer Tikka Masala at Home – Restaurant-Style Recipe 2025

If you’ve ever been to an Indian restaurant and fallen in (Paneer Tikka Masala)love with that smoky, creamy, slightly spicy Paneer Tikka Masala, you’ll be happy to know it’s actually pretty easy to recreate at home – and it tastes even better when you make it fresh!

This North Indian classic combines two of our favorite things: tandoor-grilled paneer tikka cubes and a rich, buttery tomato-onion gravy. Don’t worry if you don’t have a tandoor – your regular oven, grill pan, or even a non-stick frying pan works perfectly.

Let’s make the best paneer tikka masala recipe you’ve ever tasted.

Credit: Ai genarated image

Ingredients (Serves 4–5) (How to Make Paneer Tikka Masala at Home)

For the Paneer Tikka

• 400 grams paneer, cut into 1.5-inch cubes
• 1 large capsicum (bell pepper), cut into squares
• 1 large onion, cut into squares
• 1 large tomato, deseeded and cut into squares (optional)

For the Marinade

• ¾ cup thick curd (Greek yogurt or hung curd)
• 1 tbsp ginger-garlic paste
• 1 tsp Kashmiri red chilli powder (for color & mild heat)
• ½ tsp turmeric powder
• 1 tsp garam masala
• 1 tsp coriander powder
• ½ tsp cumin powder
• 1 tsp chaat masala
• 1 tbsp kasuri methi (dried fenugreek leaves), crushed
• 1 tbsp lemon juice
• 1–2 tbsp besan (gram flour) – this helps the marinade stick & gives crispiness
• 1 tbsp mustard oil (or any oil)
• Salt to taste

For the Gravy (Masala)

• 3 large ripe tomatoes, pureed
• 1 large onion, finely chopped or ground to paste
• 2 tbsp cashews (soaked in warm water for 15 mins & made into paste) – this is the secret to restaurant-style creaminess
• 1 tbsp ginger-garlic paste
• 2–3 green cardamoms, 1-inch cinnamon, 2 cloves (whole garam masala)
• 1 tsp Kashmiri red chilli powder
• ½ tsp turmeric
• 1 tsp coriander powder
• 1 tsp garam masala
• 1 tsp kasuri methi
• 2–3 tbsp fresh cream (malai)
• 2 tbsp butter + 1 tbsp oil
• Salt & sugar (a pinch) to balance
• Fresh coriander for garnishing

Credit: Ai genarated image

Step-by-Step Method

Step 1: Marinate the Paneer

1. In a large bowl, whisk the thick curd until smooth.
2. Add all the marinade spices, ginger-garlic paste, lemon juice, kasuri methi, besan, mustard oil, and salt.
3. Taste the marinade – it should be slightly salty and tangy.
4. Gently fold in paneer cubes, capsicum, and onion layers. Coat everything well.
5. Cover and let it rest in the fridge for at least 1 hour (2–4 hours is even better).

Step 2: Grill the Paneer Tikka

• Oven method: Preheat to 220°C (430°F). Thread paneer and veggies on skewers or spread on a lined baking tray. Grill for 12–15 minutes, turning once, until you get slight char marks.
• Stovetop: Heat a grill pan or non-stick pan, brush with oil, and cook on medium-high flame till edges are golden.

Keep the grilled pieces aside.

Credit: Ai genarated image

Step 3: Make the Silky Gravy

1. Heat butter + oil in a heavy-bottomed pan or kadhai.
2. Add whole garam masala (cardamom, cinnamon, cloves) and let it crackle.
3. Add onion paste and sauté until golden brown.
4. Add ginger-garlic paste and cook for a minute.
5. Now add fresh tomato puree, Kashmiri chilli powder, turmeric, and coriander powder. Cook on medium flame until the masala releases oil on the sides (this takes 8–10 minutes).
6. Add cashew paste + ½ cup water. Simmer for 5 minutes – the gravy will become creamy.
7. Add garam masala, crushed kasuri methi, salt, and a pinch of sugar.
8. Finally, stir in fresh cream and turn off the flame.

Step 4: Combine

• Add the grilled paneer tikka and veggies into the gravy.
• Simmer on low heat for 4–5 minutes so the smoky flavor infuses beautifully.
• Garnish with fresh coriander and an extra swirl of cream.

| Step | What to Do | |

1 | Whisk curd smoothly → add all marinade spices → taste (should be slightly salty) → coat paneer & veggies → refrigerate 1–4 hours | |

2 | Grill paneer & veggies: Oven 220°C for 12–15 min OR grill pan on stove till charred edges → keep aside | |

3 | Heat butter + oil → add whole spices → fry onion paste till golden → add ginger-garlic paste | |

4 | Add tomato puree + dry spices → cook till oil separates (8–10 min) | |

5 | Add cashew paste + ½ cup water → simmer 5 min → add garam masala, kasuri methi, salt, sugar, cream | |

6 | Add grilled paneer tikka → simmer 4–5 minutes on low flame | |

7 | Garnish with coriander & extra cream swirl

Credit: Ai genarated image

Serving Suggestions

Serve hot with butter naan, lachha paratha, tandoori roti, or jeera rice. A side of onion rings with lemon never hurts!

Read More Recipes: Palak Paneer Recipe – The Ultimate Creamy Spinach and Paneer Curry Everyone Loves

Pro Tips for Restaurant-Style Paneer Tikka Masala

• Use fresh, soft paneer – homemade is best.
• Don’t skip mustard oil and besan in the marinade; they give the authentic smoky crust.
• Kashmiri red chilli powder gives vibrant color without too much heat.
• Cashew paste + cream = that signature velvety texture.
• Charred edges on the paneer make all the difference.

There you have it – creamy, smoky, restaurant-style Paneer Tikka Masala made right in your kitchen. Once you try this version, you’ll never order it outside again!

Happy cooking! – Vaskar ❤️