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Restaurant Style Tofu Butter Masala Recipe – Easy Indian Butter Tofu “Paneer”. Dairy-free Tofu Paneer Butter Masala. Tofu is marinated and baked then simmered in tomato ginger cashew sauce. Vegan Butter Tofu Gluten-free Recipe. Jump to Recipe

You have got to make this Butter Tofu! Butter Tofu, Butter Masala or butter curry or whatever you want to call it. Red butter sauce for everything. Butter masala sauce is a popular sauce used with meats, paneer cheese or vegetables in Indian restaurants (that have a mostly North Indian Menu). It can be called makhani sauce (translates to “buttery” sauce) or butter sauce. Each restaurant can have its own version of sauce. I generally use my makhani sauce to make butter masala with veggies, tofu,chickpeas or fake meat. That makhani sauce is a rich creamy general masala sauce that makes everything taste amazing.
This butter sauce is a simpler and more restaurant like variation and can be used with veggies, chickpeas or any other additions. I use baked tofu to work as “paneer” to make a Butter Paneer. Serve with flatbread, rice, Roti or Vegan Naan. No Butter in this sauce. Feel free to use vegan butter instead of oil.
Video:

More restaurant style Indian Mains from the blog
- Mushroom Matar Masala
- Bombay Potato and Peas
- Tofu Pasanda
- Tofu Matar Masala
- Tofu in Spinach Curry – Saag Tofu
- Vegetable Jalfrezi – Veggies in smoky tangy curry
- Gobi Broccoli Makhani
- Tempeh Tikka Masala with Kale
Like this recipe? Then there are 20 more options in my Indian Kitchen book.
Tips and Troubleshooting:
- Troubleshoot: If the sauce flavor has a bitter after taste, it could be from ginger(over mature ginger can be bitter, use young juicy ginger), from the tomatoes that have not roasted well (cook them longer on medium low heat to roast well), or a larger amount of Kasuri methi (dried fenugreek leaves, use less).
- Fenugreek leaves are the only ingredient in this recipe that needs to be either ordered online or picked up from an Indian store. To sub use 1/4 tsp powdered fenugreek (fenugreek seed powder), or 1/4 tsp ground mustard. Do get some fenugreek leaves as they are used in many Indian sauces and have a fabulous authentic flavor profile. Try the Instant Pot Version of Vegan Butter Chicken here.
- Soy-free: This recipe can be easily made soy-free with Chickpeas, seitan, Chickpea tofu or Veggies.
Step by Step Photos:
Marinate the Tofu, then bake.

Baked and ready for sauce.

Some elements of this recipe are inspired by Manjulas Kitchen and Veg Recipes of India Paneer butter masala recipe.
Make the Butter Sauce. I use canned diced tomatoes as they give a deeper color.

Fold in the Tofu, sliced ginger and sliced green chile. Serve hot with Roti or Naan. Let me know in the comments how it worked out! Please also rate the recipes.

What is Butter Masala
Butter Sauce, or makhani or butter masala sauce is a creamy tomato based sauce often found in Indian restaurants. It is a mild savory sweet creamy sauce that is often served with meats or paneer cheese (butter chicken or butter paneer). Versions differ based on restaurants and chefs and i have slightly different versions on the blog and my book too. Try all the sauces with this baked tofu to find the one that you love!
To make more like a restaurant version, add more oil and vegan butter 🙂

Butter Tofu Paneer - Restaurant Style Tofu Butter Masala Recipe

Ingredients
Baked Tofu "Paneer"
- 12 oz firm tofu, pressed between paper towels for 10 minutes, then cubed
- 1/2 tsp each of garam masala, ,paprika, salt, and turmeric
- 2 tsp ginger paste , or minced ginger
- 2 tsp garlic paste or minced, or 3/4 tsp garlic powder
- 2 tsp lemon juice
- 1.5 tsp water, 1/2 tbsp
- 1.5 tbsp cornstarch, or other starch such as arrowroot
- 1 tsp nutritional yeast, optional
- 1 tsp oil
Butter Sauce:
- 1 tsp oil , or vegan butter
- 3 cloves of garlic finely chopped
- 3 large ripe tomatoes , or 1 15 oz can diced tomatoes
- 1 inch cube of ginger, 1/2 inch chopped, 1/2 inch julienned or thinly sliced into sticks
- 1 hot or mild green chile juilenned or thinly sliced, or use very thinly sliced green bell pepper
- Cashew cream made with with 1/4 cup soaked, 15 mins cashews blended with 1/2 cup water
- 1/2 tsp garam masala
- 1/2 tsp paprika , or kashmiri chili powder
- 1/4 to 1/2 tsp cayenne
- 1/2 cup water
- 1 tsp kasooori methi - dried fenugreek leaves
- 1/2 tsp salt
- 1/2 tsp sugar or other sweetener, to preference
Instructions
Bake the Tofu:
- Press and cube the tofu if you havent already. In a bowl, mix the rest of the ingredients under baked tofu, to make a marinade. Add tofu and toss well. Let it sit for 15 min (optional). Preheat the oven to 400 degrees F / 200ºc. Place the tofu cubes on parchment lined sheet. Bake for 15 to 20 minutes.
Make the Butter Sauce:
- Heat oil in a skillet over medium heat. Add garlic and cook until golden. You can also add in 1 bay leaf and 1 cinnamon stick with the garlic for additional flavor. Remove these before serving.
- Puree the tomato with the chopped ginger and half the green chile. Add to the skillet and cook until the puree starts to thicken and does not taste raw tomatoey. Dont wash the blender.
- In the same blender, blend the cashews and water until smooth. Blend the cashews for a minute, let it rest for a minute and then blend again for about a minute for a creamy result. Works with unsoaked cashews. Or use premade thin cashew cream (about 1/2 cup).
- Reserve 1 tbsp of the cream for garnish. Add the rest of the cashew cream to the skillet. Add spices, fenugreek leaves, salt and sugar and mix well. Use 1/2 cup water to rinse out your blender and add to the skillet. Mix and Bring to a boil. Taste and adjust salt, heat (add cayenne) and sweet. Add more water if needed for preferred consistency. Add more cashew cream for creamier.
- Fold in the baked tofu. Simmer for a minute. Mix in the julienned ginger and green chile. Alternatively, mix half of the ginger and chile and use half as garnish. Add a drizzle of the cashew cream and other garnishes as pepper flakes, chopped cilantro. Serve over Easy Garlic Naan, rice or roti.
Video
Notes
With soy curls: Add 1 cup soy curls directly to the skillet at step 4 with cashew cream and 1 cup of water. Simmer for 10 minutes. Nutritional values based on one serving Nut-free: Use coconut cream (thick white part from a can of full fat coconut milk) To sub fenugreek leaves: Use 1/4 - 1/3 tsp powdered fenugreek (fenugreek seed powder), or 1/4 tsp ground mustard. No onion garlic; this recipe is already onion free. Use zucchini to sub garlic in the sauce. Add 1/2 tsp more fenugreek leaves to balance the flavor.
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.










I have made this a few times. For now, I leave out the cayenne, due to little eaters, but look forward to a spicy version someday. My family likes this a little saucier, and doubling the tofu and tripling the sauce works for us. Lots of leftovers and it’s a hit with our kids!
awesome!
my absolutely favourite recipe! great flavours, very comforting too.
I usually have it with jasmine rice and also add peas and spinach to the curry.
yay!
I love this recipe and use multiples of the spices, garlic and ginger to suit our tastes! I teach free plant based cooking classes in our community and we recently multiplied the recipe to make enough for 40 people and even though only 30 attended the class the rest was packed away in people’s containers for lunch the next day before I could get a second serving! Thank you for your awesome recipes. I’m a big fan and being Indian I love have vegan options that make it easy to cook delicious Indian recipes without hurting the animals and our planet! <3
Thats amazing!!!!
Just great. Was looking for some use of my potatoes and was happy to find this, best butter tofu I have ever had. Did not have fegunek, thus, just skipped it. Still awesome, thanks! Going to check out your other recipes and pin this one.
Sorry meant tomatoes… 🙂
Absolutely delicious, thank you for another great recipe.
Love this recipe. My husband asks for it often, we love indian food and don’t go out to eat much so this is a clear winner!!
awesome
Made this tonight, soooo delicious and possibly the best masala I’ve had. The flavor of the tofu paneer came out great. I added peas for some extra green, and I definitely recommend adding the extra (vegan) butter if you’re not a low fat eater. Thanks for this great recipe, I’ll be making it on the regular!!
yay!!
Thank you for this recipe. Definitely going to make this! I don’t have fenugreek leaves, is there a substitute? Will it mess up the recipe if I leave them out? Was hoping to make it today 🙂 Thanks, Jackie
leave it out. add a 1/4 tsp ground mustard to the sauce instead
Thanks, Richa! I made the tofu yesterday. So happy, my first success with tofu, I had just about given up on it!
yay!!
I love this dish so much! It comes together quickly and is super delicious. I double the sauce and add green beans.
yumm!
Awesome! My girlfriend thought this was better than she’s had in any restaurant. Perfectly balanced and well spiced, just like all your recipes.
awesome!!
Late to the game in trying this one. Super yummy, we will have to double next time!
awesome!
Absolutely delicious, no one could believe it was dairy and gluten free. Just got back from India, brings back lovely memories. I look forward to trying more recipes.
thank you – I love ‘traveling’ to far away places with cooking!