Our Vegan Instant Pot Paneer Butter Masala Recipe

As a family always on the lookout for flavorful vegan dishes that everyone can enjoy, we’ve found a winner with this Instant Pot vegan paneer butter masala—also known as vegan paneer makhani.

It’s perfect for satisfying those cravings for delicious Indian food made right at home.

One of the most popular North Indian dishes is paneer butter masala, which is traditionally made with paneer cheese. But we’ve discovered a way to make it completely plant-based without losing any of the rich flavors.

You’ll be amazed at how straightforward it is, and your family will love the aromatic taste.

Our Vegan Twist on a Classic Paneer Butter Masala

To make this dish vegan, we swap out the paneer with firm tofu and use plant-based butter and cream alternatives. The result is a comforting vegan paneer butter masala that’s just as satisfying as the original.

How to Make Instant Pot Vegan Paneer Butter Masala

Making this dish in an Instant Pot saves time and reduces cleanup—a big plus for busy families like ours!

We’ll walk you through the process step by step.

Equipment

• Instant Pot or pressure cooker
• Immersion blender (or countertop blender)
• Ingredients
• 1 pound firm tofu, pressed and cut into chunks
• 2 tablespoons vegan butter
• 1 onion, chopped
• 4 tomatoes, chopped
• 1 tablespoon minced garlic
• 1 tablespoon minced ginger
• 1 green chili pepper, sliced
• 1 teaspoon cumin seeds (jeera)
• 2 tablespoons dried fenugreek leaves (kasoori methi)
• 1 tablespoon maple syrup (or agave nectar)
• 1/4 cup coconut cream (or cashew cream)
• 1/4 cup cashew nuts
• 1 teaspoon salt
• 1/4 cup water

Spices

• 1 teaspoon red chili powder (use Kashmiri red chili powder for color without too much heat)
• 1 teaspoon coriander powder (dhania powder)
• 1/2 teaspoon ground cumin (jeera powder)
• 1/2 teaspoon ground turmeric (haldi powder)
• Whole Spices (optional but recommended for depth of flavor)
• 1 tablespoon black peppercorns
• 1-inch cinnamon stick (dalchini)
• 1 teaspoon cloves (laung)
• 2 black cardamom pods (moti elaichi)
• 5 green cardamom pods (elaichi)

Step-by-Step Guide

1. Prepare the Spice Bag: Place the whole spices in a piece of cheesecloth and tie it tightly to prevent them from escaping. This makes it easy to remove them later.
2. Sauté the Spices: Set your Instant Pot to ‘Sauté’ mode. Add the vegan butter, and once it’s melted, add the cumin seeds. Sauté for about 30 seconds until they’re fragrant.
3. Add Aromatics: Stir in the chopped onion, minced garlic, minced ginger, and sliced green chili pepper. Cook for 2-3 minutes until the onions are translucent.
4. Add Tomatoes and Cashews: Add the chopped tomatoes and cashew nuts to the pot. Stir everything together.
5. Add Spices and Seasonings: Mix in the dried fenugreek leaves, red chili powder, coriander powder, ground cumin, ground turmeric, and salt. Place the spice bag into the pot.
6. Pressure Cook: Pour in the 1/4 cup of water. Close the lid, making sure the vent is in the sealing position. Set the Instant Pot to ‘Pressure Cook’ or ‘Manual’ mode for 8 minutes on high pressure.
7. Release Pressure: Once the cooking time is up, carefully release the pressure manually by moving the pressure release valve to ‘Venting.’
8. Remove Spice Bag and Blend: Open the lid and remove the spice bag. Using an immersion blender, blend the contents of the pot until smooth. If using a countertop blender, allow the mixture to cool slightly before blending.
9. Add Sweetener and Cream: Stir in the maple syrup (or agave nectar) and coconut cream (or cashew cream) until well combined.
10. Add Tofu: Gently fold in the tofu chunks, making sure they’re well coated with the sauce. Let them warm through for a few minutes. There’s no need to cook the tofu further.
11. Finish Up: Press the ‘Cancel’ button to turn off the Instant Pot. Your vegan paneer butter masala is ready to serve!
12. Garnish and Serve: Sprinkle with fresh cilantro and serve with warm naan, roti, or basmati rice.

Stove Top Method for Making Vegan Paneer Butter Masala

Don’t have an Instant Pot? No worries! You can make this recipe on the stove.

Ingredients

Same as above.

Instructions

1. Sauté Aromatics: In a large pan, melt the vegan butter over medium heat. Add the cumin seeds and sauté until fragrant.
2. Cook Vegetables and Spices: Add the onions, garlic, ginger, and green chili pepper. Cook until the onions are translucent. Stir in the tomatoes, cashews, dried fenugreek leaves, ground spices, and salt.
3. Simmer: Add the water and bring the mixture to a boil. Reduce the heat and let it simmer for about 15-20 minutes until the tomatoes are soft.
4. Blend the Sauce: Remove from heat and allow the mixture to cool slightly. Blend until smooth using an immersion blender or countertop blender.
5. Add Sweetener and Cream: Return the sauce to the pan (if you used a blender), stir in the maple syrup and coconut cream.
6. Add Tofu: Gently fold in the tofu chunks and let them warm through over low heat for 5 minutes.
7. Serve: Garnish with fresh cilantro and serve warm.

Tips For Making A Great Vegan Instant Pot Paneer Butter Masala

• Press the Tofu: Pressing the tofu helps remove excess moisture, giving it a firmer texture similar to paneer.
• Adjust the Heat: If you’re serving kids or prefer a milder dish, reduce the amount of chili powder or omit the green chili pepper.
• Enhance the Color: Using Kashmiri red chili powder adds a vibrant color without making the dish too spicy.
• Creamy Sauce: Soaking the cashews in hot water for 15 minutes before cooking can make the sauce even creamier.
• Smooth Texture: For an extra smooth sauce, you can strain it through a fine-mesh sieve after blending.

Substitutions And Variations On Our Paneer Butter Masala

• Tofu Alternatives: You can use store-bought vegan paneer substitutes if you prefer.
• Sweetener: Replace maple syrup or agave nectar with coconut sugar or your preferred sweetener.
• Cream Options: Almond cream or soy cream are great alternatives if you have allergies or preferences.
• Butter Substitute: If you don’t have vegan butter, coconut oil works well too.

Feel free to add vegetables like bell peppers or peas to boost the nutritional value.

If you have a nut allergy, replace cashews with sunflower seeds and use a nut-free cream alternative.

What to Serve with Vegan Paneer Butter Masala

We love serving this dish with homemade vegan naan or roti. It’s perfect for scooping up the delicious sauce.

You can also pair it with basmati rice or quinoa for a hearty meal. For a complete feast, add a side of vegan raita made with dairy-free yogurt and cucumber.

Final Thoughts

We hope you enjoy making and sharing this vegan paneer butter masala as much as we do.

It’s a comforting, flavorful dish that’s perfect for busy weeknights or special occasions.

Let us know how it turns out! And if you’re looking for more inspiration, try our mushroom masala.

Frequently Asked Questions