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Paneer Tikka Masala is a flavorful and aromatic curry, made with marinated and grilled paneer cubes simmered in a rich onion tomato gravy along with warm spices. This restaurant quality Paneer Tikka Masala is so easy to make in the instant pot, that you will not consider take-out again.

Almost a year back, I shared my most popular paneer recipe called, Paneer Butter Masala. This recipe is similar, but has an added flavor from the marinated and grilled paneer. If you are looking for a chicken recipe, try this Chicken Tikka Masala made in the instant pot or this Salmon Tikka Masala for the seafood lovers.

Paneer Tikka Masala is one of the most popular dish ordered in Indian restaurants, as is the delicious Mango Lassi. It is also a favorite on special occasions and parties. You might think that it is hard to get the restaurant quality flavor for Paneer Tikka Masala at home. However once you have the basic Indian spices, it is fairly easy to make this curry in the pressure cooker or even on the stovetop.

What is paneer tikka masala?

Paneer tikka masala is a dish of chunks of roasted marinated paneer (paneer tikka) in a spiced curry sauce. The sauce is usually creamy and dark orange colored. We will change it up a bit to make it easy to make it in the instant pot, with the same great taste.

What is paneer?

Paneer is fresh, soft but firm cottage cheese popular in Indian cuisine. Paneer is a very versatile dairy product and used in an assortment of Indian curries, snacks and sweets.

You can find paneer at any local Indian grocery stores. Some Costco stores also carry paneer..yay! If you are unable to find paneer in a store, you can also make it from scratch in your instant pot. Just search and there are many recipes.

What is tikka?

Tikka is small pieces of meat or vegetables marinated in a spice mixture. These pieces are then grilled or sautéed to give a wonderful flavor to the dish.

What is masala?

Masala means a mix of spices. In case of paneer tikka masala, Masala means a sauce with onions, tomatoes and warming spices.

You will love this Paneer Tikka Masala because:

√ It is warm, flavorful and comforting

√ It is vegetarian and gluten free. Reduce the amount of onions and it is low carb too.

√ It is easy to make in the instant pot

√ You can get a restaurant quality dinner at home!

√ The thick and creamy sauce is perfect with rice or for dipping naan

Difference between Paneer Tikka Masala and Paneer Butter Masala?

The two dishes are very similar but certainly have some subtle differences in how they are made.

Paneer Tikka Masala, has the below characteristics –

uses paneer tikka as it’s base, which is marinated grilled paneer cooked in a tandoor or on a grill (we will modify this aspect a bit to simplify the recipe)

has a spicier tomato based sauce

no butter used

very less cream used

lemon juice added

Paneer Butter Masala has the below distinctive features –

has a tomato based sauce, but less tomatoey than tikka masala.

more buttery & more creamy

very mild

cashew, honey used to sweeten

How to make paneer tikka masala

There are 4 main steps to make Paneer Tikka Masala in the instant pot.

Marinate the paneer Brown the paneer Make the sauce Pressure cook

Let’s get started with the easy step-by step paneer tikka masala recipe.

Marinate the Paneer

For making paneer tikka, we marinate the paneer pieces with yogurt and some spices and then pan roast them before putting them in the curry. I also like to add bell peppers and onions when marinating the paneer.

Add the yogurt, spices, ginger, garlic, lime juice to a bowl and mix them. Now add in the paneer, bell pepper and onion pieces and coat them with the marinade on all sides. Refrigerate this paneer tikka marinade for 15 to 30 minutes.

Brown the paneer

In a flat pan, heat some oil and place the marinated pieces of paneer, peppers and onions. Slightly brown then on all sides. This adds a wonderful flavor to the paneer, and the curry!

You can do this step while the sauce is cooking in the instant pot. Also, this step is optional. You can also add the marinated paneer and veggies directly to the sauce.

Change from the traditional Paneer Tikka Masala recipe

This is the part that is different than the traditional Paneer Tikka Masala recipe. Ideally the marinated paneer pieces would be cooked in a tandoor (or grill) or oven until they start to char and then added to the sauce.

To go the traditional route, add the marinated paneer, peppers and onions to skewers (one piece at a time in that order). Bake and broil in the oven until they start to brown on the edges.

We are simplifying the recipe by browning the paneer in a pan. The only thing we lose is a bit of the smoky flavor. But trust me, you will still love this version of paneer tikka masala and will not hesitate to enjoy it for a quick weeknight dinner.

Make the Paneer tikka masala sauce

I like to have lots of sauce in my curries, so I can enjoy them with rice or naan. We will make the sauce in the instant pot. If you are new to the instant pot, check out this Instant Pot Quick Setup Guide to get you started.

Heat some oil in the instant pot. Add onions, ginger and garlic. Sauté for about 3 minutes. Add tomato, spices, cashews and water. You can cut the tomatoes in large pieces, as we are going to puree the sauce after pressure cooking.

Pressure cook the Paneer Tikka Masala curry

Close and pressure cook for 5 minutes, followed by 5 minute NPR (release pressure manually 5 minutes after the beep).

Then blend the cooked ingredients using an immersion blender or in a regular blender. I used my immersion blender, which I could use directly in the pot. If using a regular blender, you would have to pour the contents into the blender and may need to let them cool before blending. Then pour them back to the instant pot after blending. The gravy is now ready.

Add cream, Kasoori methi (dried fenugreek leaves) and the browned paneer & veggies. You can also add the marinated paneer and veggies without browning, to make this recipe easier. Stir well and let the curry sauté for 2 minutes.

Garnish with cilantro and enjoy!

This Paneer Tikka Masala is so creamy & so good!

Can this Paneer Tikka Masala be made on stovetop without instant pot?

Yes, of course. The instant pot just helps to make the cooking faster with cooking food under pressure. You can cook the exact same recipe in a skillet or a stovetop pressure cooker.

For a stovetop pressure cooker, cook the sauce ingredients for 2 whistles. For a skillet, after adding the sauce ingredients, cover and simmer until the onions and tomatoes are well cooked in about 15 minutes. Then puree and add the marinated paneer.

Tips for perfect Paneer Tikka Masala

Use ghee or butter in place of oil to enhance the flavor.

Use plain full fat or greek yogurt for the marinade.

I use Kashmiri chili powder which is mild, but adds a beautiful color to the curry

I use fresh tomatoes, however canned diced tomatoes will work too.

Vegan version of Paneer Tikka Masala

I have not tried making this vegan version, but here would be my suggestions to make Vegan Paneer Tikka Masala.

Use olive oil or another fav plant based oil

Use tofu for paneer in the marinade

Skip the yogurt when marinating the tofu, just marinate in spices.

Use coconut milk in place of heavy cream

What to serve with Paneer Tikka Masala

We love to enjoy this paneer tikka masala with garlic naan, paratha or roti.

Rice is another great option. You can use brown or white basmati rice. If you like flavored rice, check out my cumin or jeera rice recipe. It goes really well with this curry.

For healthier alternatives, use quinoa or cauliflower rice as a side with this paneer tikka masala!

Hope you enjoy this Paneer Tikka Masala!

Looking for more paneer recipes, check out my popular Palak Paneer, Paneer Jalfrezi and Tandoori Paneer Naan Pizza.