Healthy Paneer Tikka Masala
Creamy, smoky, spicy AND healthy- this paneer tikka butter masala is rich, flavourful and honestly just as good as something you’d order out!

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This Paneer Tikka Butter Masala starts with a flavourful marinade made using hung curd, spices, aromatics and gram flour, coating each and every cube of paneer with flavour. You can panfry, bake or airfry it until golden and then smoke it with charcoal for that restaurant style aroma. The gravy is made by slow roasting tomatoes, onions, garlic, ginger and whole spices until everything softens and caramelises and then blended into a smooth, rich base. I like to finish everything with smooth whisked greek yogurt and a touch of butter to keep it creamy and indulgent but still nutritious for an everyday dinner!
What makes this dish so so good
- The smoky flavour from the charcoal ties the whole dish together and gives it that restaurant style depth without needing a tandoor. Trust me, this is what brings it home so do not miss it!
- Both the paneer and the gravy are beautifully seasoned. Every bite is full of spice, warmth and balance so this is definitely not a bland paneer tikka butter masala.
- The marinade is layered with flavour using fresh aromatics, hung curd, lemon, spices, flaxseeds and a bit of gram flour for texture and binding.
- It’s rich and satisfying, but still feels light. Greek yogurt instead of cream and just a small amount of butter to finish keeps things balanced
- This actually keeps really well in the fridge and somehow tastes even better the next day as the flavours continue to deepen. So if you spend a little time making it once, you end up with something delicious and ready to go for the next couple of days!
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Healthy Paneer Tikka Masala
Creamy, smoky, spicy AND healthy- this paneer tikka butter masala is rich, flavourful and honestly just as good as something you’d order out!

servings
4-6
prep time
10 min
marination time
60 min
cook time
60 min
Paneer Tikka
- 400g paneer (or tofu), I used 200g low fat paneer + 200g extra firm tofu
- 1/2 cup hung curd
- 1 tbsp gram flour
- 1 tsp turmeric
- 2 tsp chilli powder
- 1 tsp kashmiri red chilli powder
- 1 tsp coriander powder
- 1/2 tsp mango powder
- 1 tsp garam masala
- 2 tsp kasuri methi
- 1 tsp cumin powder
- 1 tsp chaat masala
- salt pepper
- ginger garlic chilli flax paste (1 inch ginger + 11 cloves garlic + 3 green chilies + 1 tsp flax seeds)
- juice of 1/2 lemon
- charcoal smoke: 2 small pieces of charcoal + 1 tsp ghee
Gravy
Initial Roast
- 3 medium tomatoes, roughly chopped
- 1 onion, roughly sliced
- 5 garlic cloves
- 1 inch ginger
- 1 green chilli
- 1/4 cup cashews
- 1 small bay leaf
- 1 inch cinnamon stick
- 2 green cardamoms
- 2 cloves
- 1 tbsp mustard oil
- salt pepper
Cook with
- 1 tsp oil, to grease the pan
- 1 tsp oil, to grease the pan
- blended puree
- 1 tsp red chilli powder
- 1 tsp coriander powder
- 1/2 tsp cumin powder
- 1/2 tsp garam masala
- salt to taste
- 1/2 tsp jaggery (or coconut sugar or honey), optional
- 2 tbsp greek yogurt, whisked
- fresh coriander, to garnish
- 1 tbsp butter
Instructions:
Paneer Tikka
- Take 400 g of paneer or tofu (or a mix of both– 200 g each) and cut into small cubes or bigger if you prefer.
- In a blender: add ginger, garlic, green chillies and flaxseeds ( you can directly add flaxseed powder to the marinade too). Blend into a paste.
- In a bowl: whisk together hung curd, ginger-garlic-chilli- flax paste , your choice of spices, a spoon of gram flour and a little lemon juice.
- Add the marinade to the paneer and/or tofu cubes and coat everything really well. Mixing gently with your hands works best.
- Cover and refrigerate for at least 1 hour for the flavours to develop.
-
Cook the marinated tikka until the edges are slightly crisp and golden:
• Airfryer: 200°C for 20–25 minutes (line basket with parchment, mixing the paneer midway)
• Oven: 200°C for 30–40 minutes (on a tray lined with parchment)
• Pan: Shallow fry in mustard oil on medium heat, flipping until golden -
Optional (but highly recommended) charcoal smoke:
• Heat a small piece of charcoal over an open flame until red hot.
• Place the hot charcoal in a small bowl and set it in the centre of the cooked paneer tikka.
• Pour a little ghee over it and cover immediately: If using an airfryer or oven, just close the drawer or door (with the heat off) and if using a pan, cover with a lid and let it smoke for 5–10 minutes so the tikka absorbs the flavour.
Gravy
- In an oven safe dish, add chopped tomatoes, onions, garlic, garlic, cashews, whole spices, mustard oil, salt and pepper and mix well.
-
Roast until the tomatoes are completely soft and slightly caramelised:
• Airfryer: 200°C for 25–30 minutes
• Oven: 200°C for 30–35 minutes
• Stovetop: Cook in a pan on medium heat, stirring occasionally - Let it cool slightly, remove the bay leaf and take only half of the cinnamon and then blend into a smooth paste.
- In a greased hot pan, add the blended gravy and mix in powdered spices and cook this down on medium heat until it starts smelling aromatic.
- Add water to adjust the consistency to your liking, add the paneer tikka and mix gently. Let this cook for a few minutes for the paneer tikka to marry into the gravy.
- Mix in a little jaggery to balance the tanginess from the tomatoes and turn off the heat.
- Garnish with whisked greek yogurt, fresh coriander and a small amount of butter, just to keep that butter masala touch intact.
- Serve hot with roti, naan or rice and enjoyy!
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