Enjoy the richness of this creamy and exotic shahi paneer made effortlessly in the
The recipe I am sharing here is the easiest Mughlai shahi paneer you will ever make. Made in the

Shahi paneer is a popular dish from Mughlai cuisine where Indian cottage cheese is cooked in a creamy white curry sauce made with onion, yogurt, cashew, and cream. Succulent paneer in a luscious and silky curry sauce is perfect for an indulgent meal.
This restaurant-style shahi paneer recipe pairs perfectly with tandoori roti, garlic naan, butter naan, or jeera rice. This is one of the best paneer recipes you will make and is also great for parties, special occasions, and celebrations.
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Why you will love this recipe?
- This shahi paneer recipe ensures that the flavors of the creamy gravy and tender paneer shine through. It strikes a perfect balance, making it suitable for those who prefer milder dishes.
- This
Instant Pot shahi paneer recipe is easy to make and requires minimal monitoring. - With its royal and luxurious appeal, this
Instant Pot shahi paneer gravy is perfect for special gatherings, parties, or celebratory occasions, impressing your guests with its exquisite flavors.
Ingredients
Paneer: Use store-bought paneer or homemade paneer.
Spices: The whole spices used are bay leaf, cinnamon stick, cloves, and black pepper. The powdered spices used are garam masala powder and ground cardamom. Optionally, you can add ½ teaspoon of cumin seeds and black cardamom, along with other aromatic spices.
Cashew, cream, and yogurt: Cashew nuts and heavy cream add richness to this royal dish. This paneer curry has white gravy and does not use tomatoes. Yogurt is used instead in this recipe.
See the recipe card for full information on ingredients and quantities.
Step-by-step instructions
Step 1: Grind the onion into a smooth and thick paste using ¼ cup of water (image 1). Grind together the soaked cashew and yogurt into a fine paste (image 2).
Step 2: Heat ghee and add the whole spices - bay leaf, cinnamon, cloves, and black pepper. Saute for a few seconds. Add the onion puree and green chili. Saute for 2-3 minutes (images 3 and 4).
Step 3: Add ginger paste and garlic paste. Saute for one more minute (image 5).
Step 4: Add the yogurt-cashew paste. Saute for 3-4 minutes (images 6 and 7).
Step 5: Add 1½ cups of water. Mix well and deglaze the bottom of the pan (image 8).
Step 6: Cancel saute mode and secure the IP lid. Set the
Step 7: Add the soft paneer cubes, cream, garam masala, and salt. Mix gently (images 10 and 11).
Step 8: Simmer for 5 minutes. Cancel saute mode and add the cardamom powder (image 12).
Expert Tips
It is important to add the salt only after pressure cooking. This is to prevent the yogurt from splitting.
Traditionally, onions are boiled before using them in this dish. However, since we are pressure-cooking the curry base, it is not needed in this recipe. If you prefer a milder taste, you can boil the onions before grinding them.
You can also use almonds instead of cashew nuts in this recipe. In that case, soak them in water and peel the skin before grinding them. To make this dish nut-free, use melon seeds or white poppy seeds.
I use green chili peppers here to retain the white color of the curry. You can replace the green chilies with red chili powder, although this may change the color of the dish.
What to serve with shahi paneer?
Shahi paneer pairs perfectly with various Indian bread and rice dishes. Classic choices include soft naan, fragrant jeera rice, or basmati rice biryani. To add freshness and balance, serve it with a side salad like kachumber or a cooling raita made with cucumber and mint.
Recipe FAQs
No. While both are rich and creamy paneer dishes, the curry base is different. Paneer makhani (butter paneer) is made in a tomato curry base and does not use onions.
Traditionally, the curry is made using nuts. However, for a nut-free version, replace cashews with melon seeds or white poppy seeds.
The white curry sauce itself can be stored in the refrigerator for up to five days. It can also be frozen for up to two months. The final dish itself can be stored in the refrigerator for up to three days. If you are planning to freeze it, I recommend freezing the curry base and not the final dish. Make the curry sauce in the
You may also like these popular paneer dishes:
If you tried this Instant Pot Shahi Paneer Recipe or any other recipe on my website, please leave a 🌟 star rating and let me know how it went in the 📝 comments below.
Recipe card
Shahi Paneer in Instant Pot
Equipment
Ingredients
- 2 cups paneer (16 oz)
- 2 tablespoon ghee (use store-bought or homemade ghee)
- 2 medium onions roughly chopped
- 1 teaspoon ginger paste
- 1 teaspoon garlic paste
- ¼ cup cashew
- ½ cup yogurt
- 1-2 green chili slit
- 1 cup water
Finish with:
- ¾-1 teaspoon salt (adjust as per taste)
- ½ cup cream
- ½ teaspoon garam masala (use store-bought or homemade garam masala)
- ¼ teaspoon ground cardamom
Instructions
Prep:
- Soak cashew in warm water for 10 minutes.
- Cut the paneer into cubes and place them in warm water.
- Grind the onion into a smooth paste using ¼ cup of water (make sure there are no big chunks of onion). Set it aside.
- Grind together the soaked cashew and yogurt into a smooth paste.
Making the curry:
- Set the Instant Pot in saute mode and add ghee.
- Once it heats, add the whole spices - bay leaf, cinnamon, cloves, and black pepper. Saute for a few seconds.
- Add the onion paste and green chili. Saute for 3 minutes, taking care the onion does not change color.
- Add ginger paste and garlic paste. Saute for one more minute.
- Add the yogurt-cashew paste. Saute for 3-4 minutes.
- Add 1½ cups of water. Mix well and deglaze the pot.
- Cancel saute mode and secure the IP lid. Set the Instant Pot to pressure cook mode for 3 minutes.
- Do a natural release of pressure for 5 minutes, then do a quick release.
- Open the lid and set the Instant Pot to saute mode - Low.
- Add the paneer cubes, cream, garam masala, and salt. Simmer for 5 minutes.
- Cancel saute mode and add the cardamom powder.
- Serve hot with naan.
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