Make Easy Paneer Peshawari at home in just 30 minutes for a restaurant-style dinner on a weeknight. Made with paneer (Indian cottage cheese) in a rich gravy with tomato, onion, cream, nuts, and spices, it’s creamy and super delicious.
Visit an Indian restaurant and you’ll almost always spot Paneer Peshawari on the menu. I’d always wanted to try making it at home instead of waiting for a restaurant visit to enjoy it.
As it happened, when we moved to the UK, a local Indian dabba catering service sent us a meal that included Paneer Peshawari with fluffy white basmati rice, soft plain naan bread, boondi raita, and a crunchy kachumber salad.
It was so delicious, I couldn’t resist asking how they made it—almost like the universe was sending me a sign! Ever since, this easy paneer curry has been a regular on our weeknight dinner table.
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💛This Paneer Peshawari Tastes Better than Restaurant!
Yes, you read that right! This homemade version is creamy, nutty, and perfectly spiced, you might not feel the need to order it at a restaurant.
It’s become one of the most loved recipes on my blog—right alongside Crispy Onion Bhaji—and I absolutely love seeing your recreations on Pinterest.
👩🏻🍳Sandhya’s Top Tips
- My number 1# tip Always Soak the paneer cubes (Indian cottage cheese) in hot water for at least 10 minutes for extra soft paneer.
- Soak cashews in warm water for at least 15 minutes before blending. It gives a super smooth paste.
- Cook the tomato base well until it leaves oil at the edges—this is key to avoiding raw flavors.
- Add paneer at the end to keep it soft and tender. Overcooking can make it rubbery.
- Always crush kasuri methi between your palms to release its aroma before adding.
- Make it vegan by using tofu and cashew cream instead of paneer and dairy cream.
What is Peshawari Cuisine?
Peshawari cuisine comes from Peshawar, Pakistan, and has had a big influence on Punjabi cooking.
The flavors are really indulgent with creamy gravies made with nuts, cream, and aromatic spices. The curries are often cooked in ghee or oils and finished with kasuri methi.
Our homemade Paneer Peshawari has got all flavors—making it perfect to enjoy with Indian breads or rice.
📋 Ingredients
Complete list of ingredients and amounts can be found in the recipe card below.
- Bay leaf & cumin seeds – For tempering and extra aroma.
- Paneer – Use store-bought or homemade paneer. Both work well. For a vegan version, swap paneer with tofu.
- Tomato puree – Blend fresh tomatoes into a smooth puree. You can also use passata or canned tomatoes.
- Onion – Finely chopped; forms the base of the curry.
- Ginger garlic – I like using fresh paste, but jarred ones work just fine.
- Cashew nuts – Soaked and blended into a smooth paste for that creamy nutty gravy.
- Cream – I use double cream for richness. For vegan, use cashew cream.
- Spices – The usual Indian spice cupboard essentials: turmeric, chilli powder, cumin powder, coriander powder, and garam masala.
- Kasuri methi – also known as Dried fenugreek leaves. Lightly roast and crush them between your palms before adding. Don’t substitute with fenugreek powder.
- Oil & unsalted butter – I use a mix of the two for that restaurant-style flavor.
Peshawari Curry Variations
If love the flavors of Peshawari cuisine? You don’t have to stop at paneer—try these delicious variations for a change:
- Dal Peshawari – Make the peshawari gravy and stir it through cooked red lentils or black lentils for a comforting, creamy dal.
- Chicken Karahi Peshawari – A classic version made with chicken pieces cooked in the same rich, nutty gravy.
- Peshawari Paneer Chole – Add chickpeas along with paneer for a hearty and protein-packed curry.
- Peshawari Chole – Skip the paneer and make a creamy chickpea curry with the Peshawari-style gravy.
- Gobi Peshawari – Swap paneer for air fried cauliflower florets for a lighter vegetarian option.
🍽️ What to Serve With Paneer Peshawari?
Create your own Indian fakeaway night with these tasty sides:
- fresh kachumber salad or sliced onions salad with lemon
- homemade yogurt flatbread or plain paratha for scooping the curry
- vegetable pulao rice or yellow pilau rice
- vegan cucumber raita or plain yogurt
- homemade poppadoms
🧂Storing Leftover Paneer Peshawari Curry
- In the fridge – Store in an airtight container for up to 3 days. Reheat in a microwave or saucepan with a splash of water.
- In the freezer – Paneer curries freeze extremely well. Portion into containers and freeze for up to 6 months. Thaw overnight in the fridge and reheat before serving.
❓Recipe FAQs
It’s really simple! Swap the paneer for firm tofu and use plant-based cream instead of dairy cream. The rest of the recipe remains the same, and you’ll have a creamy, delicious vegan Peshawari curry.
Peshawari gravy is a rich, creamy curry base made with tomatoes, onions, cashews (or almonds), cream, and aromatic spices. It has its roots in Peshawar cuisine, which is known for using nuts and dairy to create luxurious, mildly spiced curries.
More Easy Indian Vegetarian Curries
Ingredients
- 250 g paneer cubes
- 1 medium red onion
- 1 Cup tomato puree Roughly 2 tomatoes blended
- 1 teaspoon ginger paste
- 1 teaspoon garlic Paste
- 12 cashew nuts soaked in ¼ cup hot water
- ½ Cup cream
- ½-¾ Cup water
- 2 teaspoon Kasuri Methi (Dried Fenugreek Leaves)
- 1 tablespoon Oil any neutral flavored oil
- 1 tablespoon unsalted butter
- 1 teaspoon cumin seeds
- 1 bay leaf
- ¾ teaspoon turmeric
- 1 ½ teaspoon Kashmiri Chilli Powder
- ¾ teaspoon garam Masala
- 2 teaspoon coriander powder
- 1 teaspoon cumin Powder
- ¾ Salt to Taste
Instructions
- Heat Oil + Unsalted Butter in a Pan, add Bayleaf & Cumin Seeds. Once Cumin Seeds splutter add chopped onions. Saute until they begin to change color to light brown. I often add a pinch of salt along with onions so they let out water and speeds up the process.
- Stir in ginger garlic paste and cook until the raw smell disappears.
- Next, add Tomato Puree, spice powders and saute until the mixture begins to leave oil.
- Meanwhile, grind the soaked cashewnuts and set them aside.
- Once onion tomato mixture has begun to form a lump, add the cashew paste and saute for 2 minutes. The gravy tends to thicken after adding cashew nut paste. Adjust the consistency by adding ½ -¾ Cup of water to the mixture.
- Stir in Paneer Cubes, cream, crushed Kasturi methi and a sprinkle of garam masala.
- Cook for another a minute and turn off the flame.
- Adjust the spices, by adding more if required and check for salt too.
- Serve Paneer Peshawari along with warm roti or vegetable pulao.
Notes
- If you like it bit sweeter, finish with a teaspoon of honey.
- When you add cashew nut paste, the gravy tends to thicken. So adjust with ½ -¾ cup of water accordingly.
Top Tips
- My number 1# tip Soak the paneer cubes (Indian cottage cheese) in hot water for at least 10 minutes for extra soft paneer.
- Soak cashews in warm water for at least 15 minutes before blending. It gives a super smooth paste.
- Cook the tomato base well until it leaves oil at the edges—this is key to avoiding raw flavors.
- Add paneer at the end to keep it soft and tender. Overcooking can make it rubbery.
- Always crush kasuri methi between your palms to release its aroma before adding.
- You can also make it vegan by using tofu and cashew cream instead of paneer and dairy cream.
Sneha Fathima says
Tried the recipe today.Loved it.Its a great dish Thank You
Sandhya Hariharan says
Thanks so much Sneha:)
shyam says
do I need to fry paneer prior to adding in the gravvy and dish without onion ginger and garlic during spl puja days.
recipe is xcelent
Sandhya Hariharan says
Thank you Shyam. I haven't fried the Paneer. Also I am not sure if preparing this dish without ginger garlic would still impart the same flavors. You may as wel lcheck out my Paneer Makhani Recipe that can be prepared without Onion and Garlic.
Val says
I am interested in making this. Sounds delicious although I am interested in knowing if the 2 tsp of kasthi methi/fenugreek is powder not leaves or what the equivalent would be? Thanks Val
Sandhya Hariharan says
I have added 2 tsp dried Methi Leaves (kasuri methi).. Instead of adding powder, I might as well omit it. Please do let me know after you make it.
Angela says
First off I want to say this is an amazing recipe as is. I'm making it again tonight and I just made it yesterday. But when is the butter in the ingredients to be added to the recipe?
Sandhya Hariharan says
Thank you for asking.. I usually add it along with oil in the first step. Just realised, I haven't mentioned it.
I am so glad you loved it.
Silky khanuja says
Thank you for sharing your receipe.....I cooked it and it was yumm...
Namrata thapa says
Easy n look yummy will surely try ur receipe 🙂
Janece says
Hi. This looks so yummy, however could you tell me what kasthuri methi is?
Sandhya Hariharan says
Hi Janece, Kasthuri Methi is dried Fenugreek Leaves that you can easily find in an Asian grocery store.
Philomena says
I do not understand what is meant by "12 Nos of cashew nuts". Can you clarify the amount of cashews needed? Thank you!
Sandhya Hariharan says
Please use 12 Cashewnuts .
Meeta says
One of my favorite Paneer dishes! Love the creamyness the nuts give the sauce. Also love the color scheme of these series. Now you have be craving for a good curry!
Sandhya Hariharan says
Thanks Meeta for your lovely comments on the color scheme. Its means a lot to me. Yes .. its a creamy delicious curry, that can get one finger licking!