Paneer in Cashew Sauce ( Shahi Paneer)

The literal translation of Shahi Paneer is ‘Royal Paneer’ which is very appropriate name for this dish, fit for a king. Paneer, a home made cheese, is accompanied with a rich and creamy sauce made from cashews. Try this delectable and flavorful Indian dish which is a restaurant favorite.

Shahi Paneer

Paneer – 14oz block (home-made or store bought), cubed
Oil – 3 tbsp
Onions – 2 small, finely copped
Tomato Sauce – 1, 8oz can
Garlic – 3 cloves, finely chopped
Ginger – 1 tbsp, grated
Green Chili – to taste, finely chopped
Cumin Powder – 2 tsp
Coriander Powder – 2 tsp
Garam Masala – 2 tsp
Cashew Pieces – ¾ cup
Milk- 1 cup
Water – 1 1/2 cup
Sugar – 1 tbsp
Salt – to taste
Cilantro – 5 sprigs, finely chopped for garnishing


1. Soak cashews in milk for about 15 min or until ready to use.
2. Heat 2 tbsp Oil in a medium size non-stick wok on medium to high heat.
3. Add Onions and fry until they start to dry out.
4. Add Ginger, Garlic and Green Chili and cook for 2 to 3 minutes.
5. Add Tomato Sauce, stir well and cook until oil separates..
6. While Onions/Tomato Sauce is cooking, blend soaked Cashews and Milk in a blender until smooth.
7. Once Onion/Tomato mixture is ready, add Cumin Powder, Coriander Powder and GaramMasala – mix well.
8. Add Cashew and Milk mixture and mix well. There should be no lumps in the gravy.
9. Add Water, Salt and Sugar and bring to boil.
10. While waiting for the gravy to boil, sauté cubed Paneer in 1 tbsp oil, on medium to high heat in a non-stick pan.
11. Once Paneer is light gold/brown in color, take it out on a paper towel to drain excess oil.
12. Once gravy comes to a boil, add in Paneer and mix.
13. Garnish with fresh cilantro or with additional broken cashews.
14. Serves 6.


1. Paneer is very delicate. Take care to handle it gently or it will break up very easily.
2. If you like thicker or thinner gravy, adjust the amount of water.

Watch and Learn:

Print Friendly, PDF & Email

0 thoughts on “Paneer in Cashew Sauce ( Shahi Paneer)

  1. Hi Ladies!

    Yummy recipe! Just had a small issue while grinding the cashews and milk, they don’t grind enough to give a smooth enough texture. I believe there are suppose to be little pieces in it but when I tried it was hard to get to that point! Any suggestions?

    Thank you! 🙂

    I look forward to your recipes, all the time!

  2. Hi you girls! Such a great site to look for interesting (and yummy!) new stuff to try out :)I have lots of fun here!

    Just a cautonary note about the tomato puree: In our part of Europe tomato puree is actually what we call the really concentrated stuff, so it’s possible that some european readers may get some really really really intense tomato taste experiences with the recipes that actually ask for the puree 🙂 Sauce is our word for mushed up tomatoes, cooked with onions, garlic, oregano and the like which you can then eat with spaghetti or so.

  3. I made this using chicken and it came out amazing. I marinated the cubed chicken in yogurt, cumin, coriander, garam masala, salt, turmeric, and a little tandoori masala for a few hours. I then cooked the chicken in the tomato/onion mixture and added the cashew milk and let it simmer for a few minutes.

  4. This recipe looks wonderful, though in the written steps, you left out that you have to grind/blend the cashews and milk. I just recently made korma (my first) so I was looking at this and wondering if somehow you didn’t have to grind them, then I watched the video where you do.

    Probably going to make this, it will give me something else to make with the big bag of cashews. Looks yummy. I love your site!

    1. Hi Mary,

      Maybe you missed step 6…
      6. While Onions/Tomato Sauce is cooking, blend soaked Cashews and Milk in a blender until smooth.

  5. Hello ladies,

    I have been a silent show-me-the-curry reader for four years now; today that’s going to change 🙂
    I have tried a couple of your recipes till date. My first one was cocunut burfi rated as “delicious/ feels like home” by my Indian friends becoming one of our standard desserts. Today, I made shahi paneer with home-made paneer and chappati – all by your recipes. It was really good – and neither difficult nor time-consuming at all!
    Thanks for your great website and many greetings from Germany,

    1. Hi Andrea,

      Thanks for writing! We’re so glad that you are able to follow along with our videos and impress your Indian friends :).

  6. I made your recipe and it was very delicious! I used Almond milk because I do not drink cow’s milk..Thank you for the recipe.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.