Paneer butter masala is one of those dishes that feels like a celebration on the plate. Tender cubes of paneer are pan-fried until golden, then simmered in a luscious tomato-butter-cream sauce spiced with garam masala, kasuri methi, and a touch of ginger. At only 7g net carbs per generous serving, this is vegetarian keto comfort food at its finest. The sauce gets its signature richness from a combination of butter and heavy cream, which also keeps the fat content high and the carbs low. Serve it alongside cauliflower rice or enjoy it straight from the bowl with a spoon — no naan required when the sauce is this good.

Why This Works on Keto

This classic Indian dish is naturally keto-friendly thanks to its butter-and-cream-based sauce. Paneer provides 22g of protein per serving without any carbohydrate load, while the generous use of cooking fat ensures you hit your daily fat macro targets. By skipping sugar (a common addition in restaurant versions) and using fresh tomatoes in moderation, the total carbs stay remarkably low at just 10g with 3g of fiber.

Ingredients

  • 400g paneer, cut into 2cm cubes
  • 30g butter (for frying paneer)
  • 40g butter (for the sauce)
  • 15g fresh ginger, grated
  • 3 cloves garlic, minced
  • 1 green chili, slit lengthwise
  • 400g ripe tomatoes, roughly chopped
  • 5g kashmiri red chili powder
  • 3g garam masala
  • 2g ground turmeric
  • 2g ground cumin
  • 120ml heavy cream
  • 5g dried fenugreek leaves (kasuri methi)
  • Salt to taste
  • Fresh cilantro for garnish

Instructions

  1. Heat 30g butter in a non-stick pan over medium-high heat. Pan-fry the paneer cubes until golden on all sides, about 3-4 minutes. Remove and set aside on a plate.
  2. In the same pan, melt 40g butter over medium heat. Add the grated ginger, minced garlic, and green chili. Saute for 1 minute until fragrant.
  3. Add the chopped tomatoes, red chili powder, turmeric, and cumin. Cook for 12-15 minutes, stirring occasionally, until the tomatoes break down completely and the oil separates from the sauce.
  4. Let the mixture cool slightly, then blend until smooth using an immersion blender or countertop blender.
  5. Return the sauce to the pan over medium heat. Stir in the garam masala and heavy cream. Simmer gently for 5 minutes.
  6. Add the pan-fried paneer cubes and stir to coat. Simmer for another 5 minutes so the paneer absorbs the flavours.
  7. Crush the kasuri methi between your palms and sprinkle it over the dish. Stir through, adjust salt, and garnish with fresh cilantro before serving.

Tips & Variations

  • Smoky flavour: Drop a small piece of lit charcoal into a steel bowl placed in the centre of the dish, add a teaspoon of ghee on top, and cover for 2 minutes. This dhungar technique adds an authentic smoky aroma.
  • Extra creamy: Swap half the tomatoes for 60ml of tomato paste and add an extra 30ml of cream.
  • Spice level: Remove the seeds from the green chili for a milder version, or add a second chili for more heat.
  • Meal prep: This dish keeps well in the fridge for up to 4 days. The sauce actually deepens in flavour overnight.
Can I use store-bought paneer?
Absolutely. Store-bought paneer works perfectly well. Just make sure to pat it dry before frying so it gets a nice golden crust. If the paneer is very firm, you can soak the cubes in warm water for 10 minutes before frying to soften them slightly.
Is paneer butter masala really keto-friendly?
Yes, when made without added sugar. Restaurant versions often include sugar or honey to balance acidity, which raises the carb count significantly. This homemade version relies on the natural sweetness of tomatoes and the richness of butter and cream, keeping net carbs at just 7g per serving.
What can I serve this with on keto?
Cauliflower rice is the most popular low-carb side. You could also serve it with keto naan made from almond flour and psyllium husk, or simply enjoy the curry on its own — the sauce is rich enough to be satisfying without a side.