Easy Shahi Paneer Recipe (Instant Pot)

Name: Shahi Paneer in Instant Pot
Prep time: 5 min
Cook time: 15 min
Total time: 20 min
Ingredients: 2 cups paneer ((16 oz)); 2 tbsp ghee ((use store-bought or homemade ghee)); 2 medium onions (roughly chopped); 1 tsp ginger paste; 1 tsp garlic paste; ¼ cup cashew; ½ cup yogurt; 1-2 green chili (slit); 1 cup water; 1 bay leaf; 1 inch cinnamon; 5 cloves; ½ tsp black pepper; ¾-1 tsp salt ((adjust as per taste)); ½ cup cream; ½ tsp garam masala ((use store-bought or homemade garam masala)); ¼ tsp ground cardamom

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5 from 18 votes

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Enjoy the richness of this creamy and exotic shahi paneer made effortlessly in the Instant Pot. Serve it with naan bread or saffron rice for a delightful dining experience.

The recipe I am sharing here is the easiest Mughlai shahi paneer you will ever make. Made in the Instant Pot, it is ready in under 30 minutes with very minimal monitoring.

Shahi paneer placed on a black and silver surface along with rose petals.

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.

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 Instant Pot to pressure cook mode for 3 minutes (image 9). Do a natural release of pressure for 5 minutes, then do a quick pressure release. Open the lid and set the Instant Pot to saute mode - Low.

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).

Shahi paneer in instant pot. — Rich and delicious shahi panner made in the Instant Pot

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

Is Shahi Paneer the same as Paneer Makhani?

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.

Can I make shahi paneer nut-free?

Traditionally, the curry is made using nuts. However, for a nut-free version, replace cashews with melon seeds or white poppy seeds.

How to store Instant Pot shahi paneer?

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 Instant Pot, cool it completely, and freeze it. When you are ready, just follow the last two steps of this recipe.