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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   

Indian Butter Tofu in Black skillet over Marble

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:


Side View of Indian Butter Tofu in Black skillet

More restaurant style Indian Mains from the blog

Like this recipe? Then there are 20 more options in my Indian Kitchen book. 

Tips and Troubleshooting:

  1. 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).
  2. 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.
  3. 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.

Marinated Tofu cubes on Parchment lined baking sheet ready to be baked for Indian Butter Tofu

Baked and ready for sauce.

Marinated Tofu Cubes baked on Parchment lined baking sheet for Indian Butter Tofu Masala dish

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.

Indian Butter Sauce in black skillet for Butter Tofu Paneer

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.

Restaurant Style Tofu Butter Masala Recipe - Indian Butter Tofu "Paneer". Dairy-free Tofu Paneer Butter Masala. Tofu is marinated and baked then simmered in tomato ginger cashew sauce. Vegan Gluten-free Recipe. | VeganRicha.com

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 🙂

Indian Butter Tofu in Black Skillet over black board

Butter Tofu Paneer - Restaurant Style Tofu Butter Masala Recipe

4.97 from 165 votes
By: Vegan Richa
Prep: 15 minutes
Cook: 30 minutes
Total: 45 minutes
Servings: 4
Course: Main
Cuisine: Glutenfree, Indian, Vegan
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 Gluten-free Recipe.
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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

Make this soy-free: Simmer the sauce with chickpeas for 8 to 10 mins. Or add roasted vegetables such as Cauliflower, bell peppers, zucchini ((rub in the marinade for the tofu and bake at 400 deg F for 25 to 30 mins) and simmer for 2 minutes.
 
Make Butter Chikin: Use any vegan chikin strips or seitan. Toss in garam masala, paprika, 2 tsp minced ginger and 2 tsp garlic and oil in a pan over medium heat. Cook for a few minutes then add to the sauce with 1 cup water. Simmer for 10 minutes or longer.
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

Serving: 4g, Calories: 166kcal, Carbohydrates: 14g, Protein: 8g, Fat: 8g, Saturated Fat: 1g, Sodium: 658mg, Potassium: 412mg, Fiber: 2g, Sugar: 4g, Vitamin A: 910IU, Vitamin C: 16.4mg, Calcium: 45mg, Iron: 1.2mg

Nutrition information is automatically calculated, so should only be used as an approximation.

Did you make this recipe? Rate and comment below!

About Richa

Hi, I'm Richa! I create flavorful plant based recipes that are inspired by my Indian upbringing, including many gluten-free, soy-free, and oil-free options.

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431 Comments

  1. Emily says:

    5 stars
    Super yum!! I loved how gingery it was with the fresh julienned ginger.

  2. anita says:

    5 stars
    Amazing Recipe!
    I reduce a little the chille but it was too spicy to me so I didn’t add the cayenne.
    It was delicious!!

  3. David says:

    Want even crispier tofu, toss in air frier for about 12 min on the French fry 400F setting

  4. Caterina B says:

    5 stars
    Richa, I have not made this yet, but will soon. I have a question. Do you make “poha?” My daughter has an Indian friend, a guy she met in college. He has since returned to India and we miss him. But…..he and she were talking on Facebook tonight and he told her he was eating “poha.’ I see that one can get the requisite “flat” rice on amazon. Which one would you use? I read about this dish and found that it is very high in iron, something my dear hubby needs to get in his diet now because he just found out he has pretty bad anemia. So…just by accident, I see that there is a dish I could make for him that would be very helpful for his health. We have been eating a plant based diet, a vegan diet for almost five years and will NOT resort to animal products to get the vital iron he needs. I would appreciate any advice you could give me! Thanks.

    1. Richa says:

      You need thick poha or thick flattened rice to make it. Follow this recipe veganricha.com/?s=poha
      Use the flattened rice instead of oats. Soak for 5 mins and drain and set aside and add to the skillet

      1. Caterina B says:

        5 stars
        Thanks so much for your reply, Richa. I will look for the flattened rice online tomorrow.

  5. Kelly says:

    5 stars
    We made this with seitan and loved it!! The only thing I wished we had added was cauliflower; that would’ve put it over the top.
    Love your recipes, Richa–thank you!

  6. PK says:

    5 stars
    Great Recipe!

    1. Vegan Richa Support says:

      Hooray!!

  7. Janelle says:

    5 stars
    I’ve made a lot of different vegan Indian recipes and this is hands down the best one I’ve followed. The dish came out so tasty, with the perfect spice and creaminess. Only change I made was I added half a bag of frozen veggies to bulk up the dish. I will DEFINITELY make this again. Next time I need to make some naan to go with! Looking forward to trying your other recipes.

  8. Ann Crawford says:

    5 stars
    Oh my goodness! Who needs to go out to eat Indian food with recipes that turn out like this. I roasted cauliflower, broccoli, and red bell peppers. Mixed that with the tofu marinade after roasting veges. The sauce is so good and the marinade for tofu (veges for me) awesome. Thank you for this recipe. It will be a keeper for me.

    1. Richa says:

      🙂 awesome!

  9. Pnina says:

    Looks amazing, can the sauce be prepared a day before?

    1. Vegan Richa Support says:

      Absolutely

  10. Min says:

    5 stars
    Amazing recipe and very easy to make! It was a big hit with my toddler and the adults in the house. Thank you!!!

    1. Vegan Richa Support says:

      Perfect! Thank YOU!