Ingredients:

    Paneer - 1 packet
    Butter - 1.5 tbsp
    Oil - 1 tsp
    Onion - 1 chopped finely
    Ginger garlic paste - 1 tsp
    Tomato puree - from 2 medium sized tomatoes (comes to 1 cup)
    Milk - 1/2 cup
    Cream - 1 tbsp for granish (optional but enhances the taste)
    Salt - to taste

For mixing :

    Chilli powder - 1/2 tsp
    Coriander powder - 1 tsp
    Garam masala powder - 1/4 tsp
    Dried Kastoori methi leaves (crushed) - 1/4 tsp
    Tomato sauce - 1 heaped tsp
    Milk - 1 cup

Method:

1. Chop paneer into cubes. Take puree from 2 tomatoes and keep aside. Chop onions finely and make it ready. Now in a mixing bowl add chilli powder, coriander powder, garam masala powder, dried kasoori methi leaves, tomato sauce then add milk.
Paneer Butter Masala Recipe

2. Mix the milk spices mixture well and keep aside.In a nonstick pan add a tsp of oil, fry the paneer cubes till slightly golden brown and drain in a tissue paper and keep aside.
Paneer Butter Masala Recipe

3. Now add butter in the same pan , allow it to melt then add ginger garlic paste saute for 2mins then add onions and fry till golden browned.Then add tomato puree and fry until raw smell completely leaves, this will take atleast 5mins.
Paneer Butter Masala

4. Now add the mixed milk-spices mixture, 1/2 cup water and then simmer for 5-7 minutes.The gravy would be thick and mixed well at this stage.Add remaining 1/2 cup milk little by little stirring continuosly to prevent milk from curdling.
Paneer Butter Masala

5. Simmer again for 3mins to see like the below consistency.Then add the fried paneer cubes and mix well. Allow the paneer to sit for 2mins then switch off. Garnish with cream(optional) and Serve hot with rotis or naan.

YOUTUBE LINK : http://www.youtube.com/watch?v=LwwMjaFX510