
Paneer Mushroom Masala is a rich and flavorful Indian dish that combines the creaminess of paneer (Indian cottage cheese) with the earthy texture of mushrooms, all simmered in a spicy and tangy tomato-based gravy. Preparing this dish involves a few key steps: first, marinating and pan-frying the paneer and mushrooms to enhance their flavors and textures, then creating a robust masala base by sautéing onions, tomatoes, and a blend of aromatic spices like cumin, coriander, turmeric, and garam masala. The final step is combining the fried paneer and mushrooms with the masala, allowing them to meld together in a thick, flavorful gravy. This dish pairs perfectly with naan, roti, or steamed rice, making it a hearty and satisfying meal for any occasion.
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What You'll Learn
- Ingredients: Gather paneer, mushrooms, onions, tomatoes, spices, oil, ginger-garlic paste, and fresh coriander
- Marinate Paneer: Soak paneer cubes in turmeric, chili powder, and salt for 10 minutes
- Sauté Mushrooms: Cook mushrooms in oil until golden brown; set aside for later use
- Make Masala: Sauté onions, tomatoes, and spices until oil separates; blend into a smooth paste
- Combine & Simmer: Add paneer, mushrooms, and masala; simmer for 5-7 minutes. Garnish and serve

Ingredients: Gather paneer, mushrooms, onions, tomatoes, spices, oil, ginger-garlic paste, and fresh coriander
To begin preparing paneer mushroom masala, the first step is to gather all the essential ingredients. Start with the main components: paneer and mushrooms. Paneer, a firm Indian cottage cheese, adds a rich, creamy texture, while mushrooms provide a hearty, earthy flavor. Ensure the paneer is fresh and the mushrooms are button or cremini varieties, cleaned and sliced evenly. These two ingredients form the core of the dish, so their quality is crucial.
Next, focus on the vegetables: onions and tomatoes. Onions are the base for the masala, adding depth and sweetness when sautéed, so choose medium-sized ones and slice them finely. Tomatoes contribute tanginess and help create the gravy; opt for ripe, red tomatoes and chop them into small pieces. These vegetables will be the foundation of your spice-infused gravy, so prepare them carefully.
The spices are the heart of paneer mushroom masala, bringing warmth and complexity. Gather turmeric powder, red chili powder, coriander powder, garam masala, and kasuri methi (dried fenugreek leaves). Each spice plays a unique role: turmeric for color, chili powder for heat, coriander for earthiness, garam masala for aroma, and kasuri methi for a distinct, slightly bitter finish. Having these spices measured out beforehand ensures a smooth cooking process.
In addition to spices, you’ll need oil (preferably mustard or vegetable oil) for cooking, as it helps in sautéing the ingredients and prevents them from sticking to the pan. Another key ingredient is ginger-garlic paste, which adds a pungent, aromatic base to the masala. You can use store-bought paste or prepare it fresh by grinding equal parts ginger and garlic into a smooth mixture. This paste is a cornerstone of many Indian dishes, infusing the dish with its signature flavor.
Finally, don’t forget fresh coriander for garnishing. Chop a handful of coriander leaves finely to sprinkle over the finished dish. It not only adds a pop of color but also a fresh, herbal note that balances the richness of the paneer and mushrooms. With all these ingredients gathered—paneer, mushrooms, onions, tomatoes, spices, oil, ginger-garlic paste, and fresh coriander—you’re ready to embark on creating a flavorful paneer mushroom masala.
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Marinate Paneer: Soak paneer cubes in turmeric, chili powder, and salt for 10 minutes
To begin the process of preparing paneer mushroom masala, marinating the paneer is a crucial step that infuses the cubes with flavor and color. Start by cutting the paneer into uniform cubes, typically around 1-inch in size, to ensure even cooking and absorption of the marinade. Place these paneer cubes in a shallow bowl or plate, making sure they are in a single layer to allow the marinade to coat each piece effectively.
Next, prepare the marinade by mixing turmeric powder, chili powder, and salt in a small bowl. The turmeric not only adds a vibrant yellow color but also imparts a subtle earthy flavor, while the chili powder brings a mild to moderate heat, depending on its variety. The salt enhances the overall taste and helps the paneer absorb the flavors better. Use approximately ½ teaspoon of turmeric, 1 teaspoon of chili powder, and ¼ teaspoon of salt for every 200 grams of paneer, adjusting the quantities based on your preference for spiciness and saltiness.
Once the marinade is ready, sprinkle it evenly over the paneer cubes, ensuring each piece is well-coated. Gently toss the paneer using a spoon or your hands (if they are clean) to distribute the spices uniformly. The goal is to create a thin, even layer of the marinade on all sides of the paneer cubes. This step is essential for achieving consistent flavor and color throughout the dish.
Allow the marinated paneer to sit for exactly 10 minutes. This brief resting period is sufficient for the paneer to absorb the flavors without becoming too soft or losing its texture. While the paneer is marinating, you can prepare the other ingredients for the mushroom masala, such as chopping onions, tomatoes, and mushrooms, or heating the oil in the pan. This multitasking ensures that your cooking process remains efficient and streamlined.
After 10 minutes, the paneer cubes will have a slightly stained appearance, indicating that the marinade has been absorbed. They are now ready to be added to the pan for cooking. The marination process not only enhances the taste of the paneer but also helps it hold up better during the cooking process, preventing it from becoming crumbly or dry. This simple yet effective step sets the foundation for a flavorful and well-balanced paneer mushroom masala.
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Sauté Mushrooms: Cook mushrooms in oil until golden brown; set aside for later use
To begin the process of sautéing mushrooms for your paneer mushroom masala, start by selecting fresh, firm mushrooms. Button mushrooms or cremini mushrooms work exceptionally well for this dish due to their earthy flavor and ability to hold up during cooking. Clean the mushrooms gently with a damp cloth or brush to remove any dirt, as washing them can make them soggy. Once cleaned, slice the mushrooms uniformly to ensure even cooking. Aim for slices about ¼ inch thick, which will allow them to cook through without becoming mushy.
Next, heat a large skillet or pan over medium-high heat. Add 2-3 tablespoons of oil—preferably a neutral oil like vegetable or canola oil—and allow it to heat until it shimmers slightly. This ensures the mushrooms will sear properly instead of steaming. Carefully add the sliced mushrooms to the pan in a single layer, avoiding overcrowding, as this can release excess moisture and prevent browning. If necessary, sauté the mushrooms in batches to maintain the desired texture and color.
As the mushrooms cook, resist the urge to stir them immediately. Let them sit for 2-3 minutes to allow one side to develop a golden-brown crust. Once browned, flip the mushrooms using a spatula and cook the other side for another 2-3 minutes. Proper browning enhances the umami flavor of the mushrooms, adding depth to your paneer mushroom masala. Sprinkle a pinch of salt over the mushrooms while they cook to draw out moisture and intensify their flavor.
Once both sides of the mushrooms are golden brown, reduce the heat to medium and continue cooking for an additional minute to ensure they are cooked through. The mushrooms should be tender but still retain a slight bite. At this stage, you can optionally add minced garlic or a pinch of dried herbs like thyme or oregano to infuse extra flavor, though this step is purely for customization. Stir the mushrooms gently to combine any added ingredients.
Finally, transfer the sautéed mushrooms to a plate or bowl lined with a paper towel to absorb any excess oil. Set them aside while you prepare the remaining components of the paneer mushroom masala. These sautéed mushrooms will be added back into the dish later, contributing their rich, earthy flavor and perfectly browned texture to the final recipe. This step ensures they remain distinct and don’t lose their integrity in the masala gravy.
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Make Masala: Sauté onions, tomatoes, and spices until oil separates; blend into a smooth paste
To begin making the masala for your paneer mushroom dish, start by heating a couple of tablespoons of oil in a large pan over medium heat. Once the oil is hot, add a teaspoon of cumin seeds and let them sizzle for a few seconds until they release their aroma. This step is crucial as it forms the flavor base of your masala. Next, add finely chopped onions to the pan. You’ll want to sauté the onions until they turn translucent and slightly golden brown, which usually takes about 5-7 minutes. Stir occasionally to ensure even cooking and prevent burning. The onions should soften and caramelize slightly, adding a natural sweetness to the masala.
Once the onions are ready, add the chopped tomatoes to the pan. Mix well and continue to sauté until the tomatoes become soft and mushy, and the oil starts to separate from the mixture. This process typically takes another 5-7 minutes. At this stage, add your spices: 1 teaspoon of turmeric powder, 1 teaspoon of coriander powder, 1 teaspoon of cumin powder, 1 teaspoon of Kashmiri red chili powder (or to taste), and 1 teaspoon of garam masala. Stir the spices into the onion-tomato mixture, ensuring they are well combined. Cook this mixture for another 2-3 minutes, allowing the spices to release their flavors and the oil to separate further. The oil separating is a key indicator that your masala is ready for the next step.
After the spices are well incorporated and the oil has separated, it’s time to blend the mixture into a smooth paste. Allow the masala to cool slightly before transferring it to a blender or food processor. Add a splash of water if needed to help the blending process, but be cautious not to make the mixture too runny. Blend until you achieve a smooth, consistent paste. This paste will serve as the rich, flavorful base for your paneer mushroom masala. If you prefer a finer texture, you can strain the paste through a sieve to remove any remaining chunks of onion or tomato.
The blended masala should have a vibrant color and a thick, gravy-like consistency. Set this aside while you prepare the paneer and mushrooms, as it will be added back into the pan later to coat the ingredients. This masala is the heart of your dish, infusing it with depth and complexity. Its smooth texture ensures that it will cling beautifully to the paneer and mushrooms, creating a cohesive and delicious curry.
Remember, the key to a perfect masala lies in patience—allowing the onions and tomatoes to cook thoroughly and the spices to meld together. The blending step ensures that all the flavors are evenly distributed, creating a harmonious base for your paneer mushroom masala. With this masala ready, you’re well on your way to crafting a mouthwatering dish that’s sure to impress.
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Combine & Simmer: Add paneer, mushrooms, and masala; simmer for 5-7 minutes. Garnish and serve
Once your masala base is ready, it’s time to bring all the elements together. Gently add the paneer cubes into the gravy, ensuring they are coated evenly with the rich masala. Paneer tends to absorb flavors quickly, so this step is crucial for infusing it with the spices. Next, add the sliced mushrooms to the mix. Mushrooms release moisture as they cook, which helps balance the thickness of the gravy. Stir the paneer and mushrooms lightly to avoid breaking the paneer, as it can become crumbly if handled roughly.
Now, add the prepared masala (the spiced onion-tomato mixture) to the pan. Combine everything carefully, allowing the paneer and mushrooms to mingle with the masala. The masala should envelop the ingredients, creating a cohesive dish. At this stage, the kitchen will fill with the aromatic blend of spices, signaling that the dish is coming together beautifully.
Place the pan on medium heat and let the mixture simmer for 5-7 minutes. Simmering allows the flavors to meld, ensuring the paneer and mushrooms absorb the richness of the masala. Keep an eye on the consistency of the gravy; it should be thick but not dry. If it appears too thick, add a splash of water or warm milk to adjust. Stir occasionally, but gently, to prevent the paneer from breaking apart.
As the dish simmers, the mushrooms will soften, and the paneer will become tender, soaking up the spicy and tangy flavors of the masala. The gravy will also deepen in color and develop a glossy sheen, indicating that it’s perfectly cooked. After 5-7 minutes, turn off the heat and give the dish a final stir to ensure everything is well combined.
Finally, garnish and serve the paneer mushroom masala. Sprinkle freshly chopped coriander leaves or cilantro on top for a burst of freshness and color. You can also add a teaspoon of cream or a dollop of butter for an extra indulgent touch. Serve the dish hot, paired with roti, naan, or steamed rice. The creamy paneer, earthy mushrooms, and robust masala create a harmonious blend that’s sure to delight your taste buds. Enjoy this flavorful, restaurant-style dish in the comfort of your home!
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Frequently asked questions
The key ingredients include paneer, mushrooms, onions, tomatoes, ginger-garlic paste, spices (turmeric, coriander powder, cumin powder, garam masala, red chili powder), yogurt, cream, oil, and fresh coriander for garnish.
Paneer should be cut into cubes and soaked in warm water to keep it soft. Mushrooms should be cleaned, washed, and sliced or quartered, then sautéed lightly to remove excess moisture.
Blend onions, tomatoes, and ginger-garlic paste into a smooth paste. Add yogurt and cream to the gravy while cooking, and simmer on low heat to thicken and enrich the texture.
Yes, you can skip cream and use tomato puree or cashew paste to achieve a creamy texture. Alternatively, rely on yogurt and simmer the gravy longer to reduce and thicken naturally.
It stays fresh in the refrigerator for 2-3 days when stored in an airtight container. Yes, it can be frozen for up to a month; thaw and reheat on the stovetop before serving.

























