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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 ๐Ÿ™‚

Indian Butter Tofu in Black Skillet over black board

Butter Tofu Paneer - Restaurant Style Tofu Butter Masala Recipe

4.97 from 159 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 / 200ยบc. 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.
ย 
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.ย 

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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414 Comments

  1. ak says:

    So flavourful even though I had to make some substitutions based on what I had in the house. Will definitely make this again ๐Ÿ™‚

    1. Vegan Richa Support says:

      Yay! Thanks for taking the time to comment.

  2. Bhairavi says:

    5 stars
    Made this tonight for dinner- my daughter and I loved it!!! Thank you so much!!!

    1. Vegan Richa Support says:

      Awesome!! Thank you for sharing.

  3. Alice says:

    5 stars
    Delicious, thanks for sharing!

    1. Vegan Richa Support says:

      Awesome!