Nawabi Paneer Recipe (Restaurant-Style White Curry)
This post may contain affiliate links. Please read our privacy policy.
Nawabi Paneer is a restaurant-style Indian paneer curry in which paneer pieces are simmered in a rich, creamy white sauce. Make this Mughlai-inspired dish at home with my easy recipe, and serve it with soft butter naan or crispy lachha paratha for an indulgent meal.
Here are some more paneer recipes that you may like – Kadai Paneer, Paneer Lababdar, Palak Paneer Bhurji, Paneer Ghee Roast, and Paneer Tikka Masala.

Table of Contents
My son is home for his spring break, and all he wants to do is eat home-cooked food. He is not particularly fond of Indian food, but he does enjoy paneer dishes, such as Palak Paneer and Paneer Butter Masala. I made this Nawabi Paneer recipe for his lunch today, and he loved it. Sharing the recipe in detail with you all!
What Is Nawabi Paneer?
Nawabi Paneer (also known as Paneer Nawabi) is a Mughlai-inspired curry where paneer cubes are cooked in a white-colored sauce made with onions, nuts, fresh coconut, and spices.
The word nawabi translates to “royal” or “belonging to a nawab”, an aristocratic title from the Mughal era. The name perfectly captures what this dish is: indulgent, complex, fit for a feast.
Traditionally served at North Indian and Hyderabadi restaurants during weddings, festivals, and special occasions, it now makes an extraordinary weekend dinner at home.
The Nawabi Paneer Curry Recipe is distinct in both taste and appearance compared to other popular paneer curries. It is not your everyday curry as it is very rich, but it is a great and unique addition to your festive and special meals.
Tomatoes and spices, such as turmeric powder and red chili powder, are not used in this recipe, which keeps the gravy white. The sourness comes from yogurt, and the heat from green chilies. Nuts and cream add to the richness.
I learned to make it from a chef at one of the restaurants in Bangalore and adapted the recipe as per my taste. Do give it a try!
Ingredients
All the ingredients for this Nawabi paneer recipe are easily available at Indian grocery stores.
For The Masala Paste
- Oil – Use any neutral-flavored oil.
- Whole Spices – You will need green cardamoms (hari elaichi), cinnamon (dalchini), black cardamom (badi elaichi), cloves (laung), black peppercorns (kali mirch), and cumin seeds.
- Cashew Nuts make the gravy very rich and creamy. You can replace them with almonds or melon seeds. If using almonds, then soak them in water for 30 minutes before blending.
- Others – You will also need onions, fresh coconut, ginger-garlic paste, and green chilies.
To Fry The Paneer
- Paneer (Indian Cottage Cheese) – You can use homemade paneer or store-bought. If using store-bought paneer, soak it in a bowl of warm water for about 5 minutes to soften it.
For The Curry
- Ghee and Butter – This nawabi curry recipe is made in a mixture of ghee and butter. Ghee brings depth and a nutty aroma; butter adds a silky mouthfeel.
- Green peas – If using fresh green peas, boil them with a small amount of sugar until tender. Adding a little sugar helps them retain their lovely green color. If using frozen peas, simply rinse and use them.
- Kewra essence gives the curry a typical Mughlai flavor. Be very careful while using it. Just 2-3 drops are good enough. If added more, it can make the curry bitter. Replace it with rose water if it’s not available.
- Others – You will also need plain yogurt (dahi, curd), coriander powder, milk, Kasuri methi, unsweetened heavy cream (or fresh cream, malai), and garam masala powder.
Adding 1 tablespoon sugar or honey at the end balances the flavors really well. Try it too.
You can also add some coconut milk at the end of cooking to change the taste.
How To Make Paneer Nawabi Curry
Make The Masala Paste
Step 1: Heat 1 tablespoon of oil in a pan over medium-high heat.

Step 2: When the oil is hot, add the following ingredients and let them crackle for 5-6 seconds.
- 2-3 whole green cardamoms
- 1-inch piece of cinnamon
- 1 whole black cardamom
- 2-3 cloves
- 4-5 whole black peppercorns
- 1 teaspoon cumin seeds

Step 3: Add ยฝ cup of chopped onions and cook until they turn a light brown color (4-5 minutes).

Step 4: Add ยฝ cup grated fresh coconut and cook for 2 minutes. Stir frequently.

Step 5: Now add 1 teaspoon ginger-garlic paste and cook for another minute.

Step 6: Add whole 2-3 green chilies and cook for 3-4 minutes.

Step 7: Now, add 15-20 cashew nuts and cook for an additional minute. Stir frequently.

Step 8: Remove the pan from the heat and let the mixture cool down.

Step 9: Transfer the mixture to a blender along with ยฝ cup of water.

Step 10: Blend until a fine paste forms. Scrape the sides of the blender a few times.

If you want an extra smooth curry, you can pass this paste through a fine-mesh strainer.

Fry The Paneer
Step 11: Cut 300 g paneer into 1-inch pieces. Heat 1 tablespoon of oil in a flat pan or skillet over medium heat.

Step 12: Arrange the paneer pieces on the pan and sprinkle them with salt and pepper.

Step 13: Cook from both sides until lightly browned. Remove them from the pan and add them to a bowl filled with hot water to keep the cubes plump and soft while you make the gravy.

Do not over-fry; you want a light crust, not a hard shell.

Make The Curry
Step 14: Heat 2 tablespoons of ghee and 1 tablespoon of butter in a pan over medium-high heat.

Step 15: Once hot, add the masala paste and fry for 8-10 minutes. Stir frequently to prevent the masala from sticking to the bottom of the pan.

This is the most important step: the masala paste deepens slightly in color, and you see ghee separating cleanly at the edges. This “bhunao” stage eliminates raw flavors. Rushing this step is the most common reason home versions taste flat or starchy.

Step 16: Add 2 tablespoon plain yogurt and cook for 2 minutes.

Step 17: Add 1 teaspoon coriander powder and cook for another minute.

Step 18: Now add 1 cup of milk and cook for 4-5 minutes. Stir frequently.

Step 19: Add the following ingredients to the pan and mix well.
- ยฝ cup green peas
- fried paneer cubes
- 1 teaspoon Kauri methi
- ยฝ teaspoon salt
- ยผ cup unsweetened heavy cream
Cook for 3-4 minutes.

Step 20: Finally, add ยฝ teaspoon garam masala powder and 2-3 drops of kewra essence and mix well. Check for salt and add more if required.

You can add a tablespoon of honey if you prefer the gravy to be slightly sweet.

Step 21: Nawabi paneer is ready, serve hot.

Paneer Nawabi FAQs
Yes. Replace paneer with firm tofu (pressed and pan-fried). Use coconut cream instead of dairy cream, and thick coconut yogurt in place of regular yogurt. Skip the ghee and butter and use only oil or vegan butter.
You can prepare the masala paste up to 2 days in advance and refrigerate it in a sealed jar. On the day of serving, start from Step 11 (Frying the paneer). This saves about 15 minutes, and the paste actually develops a slightly deeper flavor overnight.
Due to the use of ingredients such as cream, milk, yogurt, and fresh coconut, Nawabi paneer curry doesn’t last long. Leftovers can be stored for 1-2 days in an airtight container in the fridge and reheated in a pan or microwave.
It is not freezer-friendly! The gravy will split while thawing, which won’t taste great.
Serving Suggestions
It is a dish to serve on special occasions and festivals. I like to garnish it with dried rose petals and sometimes with some chopped fresh coriander. (cilantro) for a pop of color.
Serve Nawabi Paneer with Indian bread, such as butter naan, lachha paratha, phulka, tandoori roti, or any other bread you prefer. It can also be served with lightly spiced pulao recipes, such as jeera rice or ghee rice.
Other Indian Vegetarian Curry Recipes We Recommend
Craving more? Subscribe to Whisk Affair to get new recipes and a newsletter delivered straight to your inbox! And stay in touch on Facebook, Pinterest, and Instagram for all of the latest updates.

Nawabi Paneer Recipe (Restaurant-Style White Curry)
Ingredients
For The Masala Paste
- 1 tablespoon oil (use any neutral-flavored oil)
- 2-3 whole green cardamoms (hari elaichi)
- 1 inch piece of cinnamon (dalchini)
- 1 whole black cardamom (badi elaichi)
- 2-3 cloves (laung)
- 4-5 whole black peppercorns (kali mirch)
- 1 teaspoon cumin seeds
- ½ cup chopped onions
- ½ cup grated fresh coconut
- 1 teaspoon ginger garlic paste
- 2-3 whole green chilies
- 15-20 whole cashew nuts
- ½ cup water
For The Paneer
- 1 tablespoon oil
- 300 grams paneer (cut into 1-inch pieces)
- salt (to taste)
- pepper (to taste)
For The Curry
- 2 tablespoons ghee
- 1 tablespoon butter (salted or unsalted)
- 2 tablespoons plain yogurt (dahi, curd)
- 1 teaspoon coriander powder
- 1 cup milk
- ½ cup green peas
- 1 teaspoon Kasuri methi
- ½ teaspoon salt (or to taste)
- ¼ cup unsweetened heavy cream
- ½ teaspoon garam masala powder
- 2-3 drops kewra essence
- 1 teaspoon sugar or honey (optional)
Instructions
Make The Masala Paste
- Heat oil in a pan over medium-high heat.
- When the oil is hot, add green cardamoms, cinnamon, black cardamom, cloves, black peppercorns, and cumin seeds and let them crackle for 5-6 seconds.
- Add onions and cook until they turn a light brown color (4-5 minutes).
- Add coconut and cook for 2 minutes. Stir frequently.
- Now add ginger-garlic paste and cook for another minute.
- Add green chilies and cook for 3-4 minutes.
- Now add cashew nuts and cook for another minute. Stir frequently.
- Remove the pan from the heat and let the mixture cool down.
- Transfer it to a blender along with ½ cup of water and blend to make a smooth paste. Scrape the sides of the blender a few times.
Fry The Paneer
- Heat oil in a flat pan or a skillet over medium heat.
- Arrange the paneer pieces on the pan and sprinkle them with salt and pepper.
- Cook from both sides until lightly browned. Remove them from the pan and add them to a bowl filled with hot water to keep the cubes plump and soft while you make the gravy.
Make The Curry
- Heat ghee and butter in a pan over medium-high heat.
- Once hot, add the masala paste and fry for 8-10 minutes. Stir frequently to prevent the masala from sticking to the bottom of the pan.
- Add plain yogurt and cook for 2 minutes.
- Add coriander powder and cook for another minute.
- Now add milk and cook for 4-5 minutes. Stir frequently.
- Add green peas, fried paneer cubes, Kauri methi, salt, and heavy cream, and mix well. Cook for 3-4 minutes.
- Finally, add garam masala powder and kewra essence and mix well. Check for salt and add more if required. Nawabi paneer is ready, serve hot.























