Paneer in White Gravy is a creamy, rich dish where Paneer cubes are simmered in a onion cashew nut based white gravy. It is a popular dish in most Indian restaurants and goes well with Indian breads. Here is how to make Paneer in White Gravy Recipe.

Indians love Paneer or Indian cottage cheese. Paneer is their ultimate food possession and for them every celebration is just incomplete without having some soft, lip-smacking paneer cubes.
Right from Kadai Paneer to Paneer Butter Masala or Paneer Bhurji, there are many dishes in which this ingredient is a star.
But while choosing paneer dishes, we tend to roam around the orange gravy based paneer delicacies and, we literally, forget about the rich, smooth, silky, creamy and absolutely delicious white gravy, which is quite different than the orange one.
Paneer in white gravy serves to be the best during special occasions, particularly, due to its comforting gravy which is made with cashew nut and onion paste mixed nicely with some beaten yogurt and amazingly flavoured with all the relevant aromatic spices.
Soft paneer cubes coated nicely in this mouthwatering white gravy provides an absolute indulgence for our every small to big celebrations. Being a part of the Royal Mughlai Cuisine, the dish uses all rich ingredients and is topped up with some saffron strands.
The flavor of the curry can vary from being mild to a little more spicy, depending upon your taste and preferences. Now let’s get some further insights into the interesting recipe of this delicious paneer in white gravy.
What is Paneer In White Gravy?
Paneer in white gravy is a gravy based Indian curry in which soft paneer cubes are dipped in a rich and creamy white color gravy, which is prepared with onion and cashew nut paste and is flavoured with all the essential aromatic spices.
Paneer in white gravy is also known as Shahi Paneer Korma, Mughlai Shahi Paneer or Mughlai Paneer in White Gravy and it’s a slightly sweet gravy.
Adding a mix of yogurt and plain flour not only adds a nice white colour to the gravy but also thickens it to make an absolute rich indulgence.
What to serve with White Gravy Paneer?
White Gravy Paneer goes really well with some hot chapatis, naan, parathas, poori, or tandoori roti by its side. Jeera Rice and Veg Pulao also perfectly complements Paneer in white gravy.
Why do we use boiled onions in this recipe?
While preparing paneer in white gravy we boil onions along with some cashew nuts, ginger and garlic. We form a smooth paste of all these ingredients, which is then used to prepare the white gravy.
The process followed here, is in contrast to the one we generally follow in Indian cooking, which is caramalizing onions until they turn nice golden brown in color. This is because caramalizing onions would change the colour of the gravy, and, we do not want that, as we are making Paneer in WHITE Gravy.
Boiling the onion cooks them without changing the colour of the final dish.
How do we make Jain Paneer In White Gravy?
The recipe of making Jain Paneer is exactly the same as that of Mughlai Shahi Paneer, except the fact that we won’t be using any onion, ginger and garlic in its preparation. Thus, the onion and cashew nut paste used in Mughlai Shahi Paneer is replaced by only cashew nut paste while preparing Jain Paneer In White Gravy. Rest the recipe of both the dishes is exactly the same.
How to make White Gravy Paneer Step by Step
Heat 3 cups of water in a pan.
Add onion, cashew nuts, ginger and garlic in boiling water and cook for 4-5 minutes.
Drain the water and add the cooked onion and cashews in a blender.
Add some cold water and grind to make a smooth paste.
Heat oil and butter in a pan.
Add cloves, cinnamon, cardamon and bay leaf and let them crackle for a few seconds.
Add the onion and cashew paste and cook for 4-5 minutes. Cover the pan if the masala is spluttering too much.
Add khoya, ginger juliennes and green chillies and cook for another 2-3 minutes.
Add salt, sugar, yogurt whisked with flour and white pepper power and cook for 2-3 minutes.
Add paneer cubes, kasuri methi and water and bring the curry to a boil. Cook for 2-3 minutes. Add fresh cream and mix well.
Paneer in White Gravy Recipe

Paneer in white gravy
Paneer in White Gravy is a creamy, rich dish where Paneer cubes are simmered in a onion cashew nut based white gravy. It is a popular dish in most Indian restaurants and goes well with Indian breads. Here is how to make Paneer in White Gravy Recipe.
Ingredients
- 1 cup Onion Chopped
- 1/2 cup Cashew Nuts
- 1 tsp Garlic Chopped
- 1 tsp Ginger Chopped
- 2 tbsp Oil
- 2 tbsp Butter
- 3-4 Cloves
- 1 inch Cinnamon
- 2-3 Green Cardamom
- 2 Bay Leaves
- 1/4 cup Khoya Grated
- 1 tsp Ginger Juliennes
- 2-3 Green Chillies Slit into half
- Salt to taste
- 2 tsp Sugar
- 1/2 cup Yogurt
- 1 tsp All Purpose Flour
- 1/2 tsp White Pepper Powder
- 1 tsp Kasuri Methi
- 250 g Paneer Cut into cubes
- 1/4 cup Fresh Cream
Instructions
Heat 3 cups of water in a pan.
Add onion, cashew nuts, ginger and garlic in boiling water and cook for 4-5 minutes.
Drain the water and add the cooked onion and cashews in a blender.
Add some cold water and grind to make a smooth paste.
Heat oil and butter in a pan.
Add cloves, cinnamon, cardamon and bay leaf and let them crackle for a few seconds.
Add the onion and cashew paste and cook for 4-5 minutes.
Cover the pan if the masala is spluttering too much.
Add khoya, ginger juliennes and green chillies and cook for another 2-3 minutes.
Add salt, sugar, yogurt whisked with flour and white pepper powder and cook for 2-3 minutes.
Add paneer cubes and kasuri methi and water and bring the curry to a boil.
Cook for 2-3 minutes.
Add fresh cream and mix well.
Serve hot.
Recipe Notes
Pass the onion cashew nut paste through a soup strainer if you want very silky gravy.
You can use the same gravy to make malai kofta.
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Jay
looks so appetizing & hearty
irresistable cliks dear
Torviewtoronto
delicious looking flavourful curry
Vimitha Anand
Creamy n yummmy… Will try soon
faseela
it luks so delicious…..luv the creamy texture…superb
Kaveri
I too have tried this one and liked it a lot. Just added a few green peas too.
Yours looks delicious
Charu Srivastava
wow simply mouthwatering!
jeyashrisuresh
Simple and yummy paneer dish.
Aarthi
Awesome Recipe
Aarthi
Balvinder Ubi
You won’t believe this, I had left over cashew paste in my fridge.Actually I did it with milk. So I guess today’s lunch is Paneer in white gravy.
Priya
Mouthwatering here, wat a terrific and super tempting paneer dish.
khushi
rich gravy!! looks delicious
a spoonful of yumm
id love to eat this with garlic naan :)yummy !
Amina Khaleel
fabulous recipe… looks delicious..
Sobha Shyam
rich and delicious curry, looks yummy..
Deeps @ Naughty Curry
never made white gravy before, this looks so proffesional & restaurant-like 🙂
joe
I added peas. so good. thank you!
Neha Mathur
Thnx for trying 🙂
Shreya Khosla
Hi, can we give the khoya a miss?
Neha Mathur
Yes Shreya, You can.
Swastik Rai
All fake comments except the one by Joe. BTW the recipe is really good. A bit sweet but fine.
Neha Mathur
What do you mean by fake comments?