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  • Royal Shahi Paneer Recipe with Mughlai Flavours

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Royal
Shahi Paneer
Recipe With Mughlai Flavours

5 min read

Posted on 15/09/2025

Article

Quick Summary: 

Do you like malai kofta? If yes, what if it had a sweet and bold younger sister? Meet shahi paneer that almost got lost in the sauce of malai kofta until it didn’t and had quite a glow up. Cut from the same cloth (masala), but with no blurred lines. This one trades soft koftas for spongy paneer cubes that don’t just soak up sauce, they run the show. The gravy adorns her in its thick, creamy, and rich flavour, packed with cashews, cream, saffron, and a hint of spices.

Deep Dive:

Sometimes accidents create history, and such is the story of the North Indian restaurant staple shahi paneer, born in the bustling royal kitchens of Nawabs. What started as a simple mix-up soon became a dish that captured the hearts (and palates) of royals and commoners alike. Today, the North Indian menu is hard to imagine without shahi paneer with its rich and savoury gravy, which is enhanced with the use of garam masala and a generous amount of nuts. It’s become a timeless classic alongside its sibling, malai kofta and its queue of paneer cousins. 

 

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Where Did Shahi Paneer Come From?

Legend has it that shahi paneer was born in the opulent kitchens of the Mughal Emperors, around the 16th century, as a result of an epic multitasking fail of grand proportions. A cook was cutting up chunks of paneer while preparing malai kofta, but by mistake, he dropped some of the paneer into the gravy. He did retrieve the masala-coated paneer pieces, and upon tasting it later, he found it to be delicious, and it also became an instant hit with the emperor and earned its place in royal culinary history. Over centuries, it evolved from royal courts to homes and restaurant menus across India and the globe.

 

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Shahi Paneer Recipe

Ingredients

For the shahi masala: 

12 whole cashew nuts

10 almonds, silvered

2 to 3 green cardamoms

1½ cups white onions, diced

1 inch of ginger, peeled and sliced roughly

4 large garlic cloves

1 to 2 small tomatoes, diced (optional)

1 green chilli slit, deseeded (optional)

⅓ cup water, for blending

For the sauce: 

2 cups paneer, cut to ¾ inches

3 tablespoons ghee (divided 1:2)

1 bay leaf

½ teaspoon shahi jeera (optional)

2-inch cinnamon

2 cloves

½ teaspoon Kashmiri red chilli powder, adjust to taste

¼ teaspoon turmeric (optional)

½ teaspoon salt, adjust to taste

1 teaspoon garam masala, adjust to taste

½ cup plain curd

1 cup water (to cook the sauce)

⅛ to ¼ teaspoon ground black pepper, adjust to taste

1 pinch saffron strands (optional)

1 teaspoon rose water (optional)

3 tablespoons heavy cream (optional)

 

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Method

Making the Shahi Masala:

1. Fry the cashews, almonds and cardamoms in a tablespoon of ghee. Fry on medium flame for 2-3 minutes. 

2. Add the onions, ginger, garlic and green chilli and saute for 5 to 6 minutes. Deglaze with 3 to 4 tablespoons of water and cook for another 3 to 4 minutes. 

3. Discard the green chilli if you want a less spicy version. Let the masala cool and then blend with water into a smooth paste.

Making the Sauce:

1. Heat the rest of the ghee in the pan. Once hot, add bay leaf, jeera, cinnamon and cloves. Once they start to sizzle, add the masala puree along with chilli powder, garam masala, turmeric and salt.

2. Sauté the paste with the masala for 3 to 4 minutes. 

3. In a bowl, whisk yoghurt with 1 to 2 tablespoons of the sautéed paste. Mix into a paste. 

4. Bring down the heat to a low and add the yoghurt-masala paste into the pan, in batches. Sauté in between additions. 

5. After adding it all, increase the heat to medium and saute for 3 to 4 minutes and pour water. Mix well and put the lid on.

6. Cook for 10 to 15 minutes until you see traces of fat visible on top. It should be thick and creamy. 

7. You can discard the whole spices at this stage and adjust the salt to taste. 

8. Add the paneer cubes, black pepper and more garam masala for flavour. Cook for a minute and turn off the heat. 

9. If using heavy cream, stir it in stage. 

10. Sprinkle crushed saffron, rose water and cover the pan and let it rest for 5 minutes.

 

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Serving Suggestions With Shahi Paneer

Shahi Paneer is not meant to be enjoyed on its own. She might be family-centric, but her friends are equally important. This dish goes best with soft and flaky butter naan, fragrant jeera rice that brings out the best in the dish, like a good friendship. You can also serve it with matar pulao if you want to savour a medley of flavours. Simmer things down with a simple cucumber or boondi raita.

blurb

Though it’s called ‘Shahi’ (royal), this dish is a hit across households just like Bollywood's King Khan.

Cashews and almonds don’t just make the gravy smooth, they sneak in heart-healthy fats and vitamin E like ninjas. Your curry is low-key a health flex.

Ghee is basically the fairy godmother that turns this dish from ‘meh’ to ‘hell yes’ with its healthy fats and smooth finish.

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