Paneer in Cashew Nut Sauce is one of those recipes that feels fancy but comes together without much fuss. The paneer gets a quick fry until the edges turn golden, then settles into a sauce that combines cashew paste, yogurt, and khoya for a texture that clings without feeling heavy. Roasted coriander seeds and white pepper add warmth without overwhelming heat, while the grated tomato melts into the gravy.
I usually make a batch of cashew paste ahead of time and keep it in the fridge, which cuts down on prep considerably. The result is a dish that looks restaurant quality but uses straightforward techniques you can manage even on a busy evening.
About the Recipe
This recipe deserves a spot in your rotation because it delivers rich flavor without asking for complicated steps or hard to find ingredients. The cashew paste creates a naturally thick base, so you do not need to rely on cream or excessive butter. The combination of khoya and drained yogurt adds body and a subtle tang that keeps the sauce from feeling one note.
Roasting the coriander seeds before grinding them releases their aroma, and that small step makes a noticeable difference. Shallow frying the paneer until golden gives each cube a bit of texture, which contrasts nicely with the silky gravy.
Why you will love this recipe
The sauce in this dish has just enough richness to feel indulgent, yet the yogurt and tomato keep it from being too heavy. White pepper powder adds a gentle warmth that sits in the background, while red chilli flakes bring a hint of color and mild heat. I like how the roasted coriander seeds deepen the overall flavor without making the dish taste overly spiced.
The paneer stays tender because you add it at the end, letting it soak up the gravy without becoming rubbery. Garnishing with capsicum strips gives a fresh crunch and a pop of green that brightens the plate. Because the gravy thickens as it simmers, you get a consistency that coats each piece of paneer evenly.
Paneer in Cashew Nut Sauce
Cooking Tips
Soak the cashew nuts in hot water for at least ten minutes before blending. This softens them enough to create a smooth paste without leaving gritty bits. Drain the yogurt for fifteen minutes in a fine mesh strainer so it does not make the gravy too watery. When you fry the paneer, keep the heat at medium and use a non stick pan to prevent sticking.
Stir the gravy gently once you add the yogurt and cashew paste to avoid curdling. If the sauce feels too thick, add water a tablespoon at a time until you reach your preferred consistency.
Serving and Storing Suggestions
This recipe serves four people and takes about forty minutes from start to finish, including prep. Serve it hot with naan, roti, or basmati rice. You can also pair it with jeera rice or a simple cucumber raita. Store leftovers in an airtight container in the refrigerator for up to three days.
Reheat gently on the stovetop over low heat, adding a splash of water if the gravy has thickened. The paneer may firm up slightly after refrigeration, but the texture softens again once warmed through.
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Paneer in Cashew Nut Sauce
Ingredients
- 350 gms Paneer (cubed)
- 2 tbsp Oil (to shallow fry)
For the Gravy:
- 1 tbsp Oil
- 1 tbsp Butter
- 1/2 tsp Cumin Seeds
- 1 tsp Coriander Seeds (roasted and coarsely ground)
- 1 tsp Ginger-Garlic Paste
- 1/2 cup Tomatoes (grated)
- 1/2 cup Drained Yogurt
- 1/2 cup Cashew Nut Paste
- 1/2 cup Khoya
- 1/2 tsp Red Chilli Flakes
- 1/2 tsp White Pepper Powder
- Salt to taste
- 1/2 cup Water
- Capsicum (cut into strips, to garnish)
Instructions
- To make the cashew nut paste, soak the cashew nuts in 3/4 cup of hot water for 10 minutes.
- Grind in a blender to make a thick paste.
- Heat the oil in a shallow non-stick pan and stir-fry the paneer till it turns golden brown. Remove and reserve.
- Heat the oil and butter in a kadai.
- Add the onion and coriander seeds.
- Add the ginger-garlic paste and saute briefly.
- Stir in the tomatoes and cook for 1 minute.
- Blend the yogurt, cashew nut paste and khoya into the gravy.
- Season with chilli flakes, white pepper powder and salt.
- Add the water and bring to a boil.
- Then simmer for 2 to 3 minutes or until the gravy is thick and smooth.
- Add the paneer.
- Cook for 1 more minute and then transfer to a serving dish.
- Garnish with the capsicum strips and serve hot.
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Frequently Asked Questions
Can I skip frying the paneer?
Yes, you can add the paneer cubes directly to the gravy without frying them. However, frying gives the paneer a golden exterior and helps it hold its shape better in the sauce.
What can I use instead of khoya?
You can substitute khoya with an equal amount of heavy cream or evaporated milk. Another option is to use milk powder mixed with a little warm milk to form a thick paste.
How do I prevent the yogurt from splitting in the gravy?
Make sure the yogurt is at room temperature and well drained. Add it after you remove the kadai from direct high heat, then stir continuously while you bring the gravy back to a gentle simmer.
Can I make the cashew paste in advance?
Yes, you can prepare the cashew paste up to three days ahead and store it in an airtight container in the refrigerator. This saves time when you are ready to cook.
Is this dish very spicy?
No, it has a mild heat level. The white pepper and red chilli flakes add warmth rather than intense spice. You can adjust the amount of chilli flakes to suit your taste.
