Mughlai Shahi Paneer is a luxurious and aromatic North Indian dish that brings together the richness of royal Mughlai cuisine with the soft, comforting texture of paneer (Indian cottage cheese). Unlike the more commonly seen red or orange gravies, this recipe features a distinctive, velvety white sauce that’s rich in flavor and subtle in spice.
In this regal preparation, succulent cubes of paneer are gently simmered in a luscious, mildly spiced gravy made with a delicate blend of cashew nuts, poppy seeds, aromatic whole spices, and fresh cream. The gravy is further enhanced with the sweetness of onions, the richness of milk or yogurt, and the floral notes of cardamom, resulting in a dish that’s smooth, fragrant, and utterly indulgent.
The Mughlai-style white gravy is known for its balance—it’s not overpoweringly spicy but is filled with deep, layered flavors that develop slowly as the ingredients come together. Each bite of paneer melts in your mouth, soaking up the creamy sauce that embodies the grandeur of royal kitchens.
Perfect for festive occasions, dinner parties, or when you simply want to treat yourself to something special, this Mughlai Paneer is best served hot with naan, paratha, or jeera rice. It’s an elegant vegetarian dish that beautifully showcases how simple ingredients can be transformed into something truly majestic.

About This Recipe
This white sauce is made from caramelized onions, yogurt, cashews, and saffron. We are utilizing bubbled onion paste here. It makes a difference to keep the sauce pleasant and white. If we fry the onions, they will caramelize and get darker or brown in color. In this way, the color of the sauce will alter, and we don’t need that. Since we are making paneer in white gravy.
Here we are utilizing a great amount of yogurt. Make beyond any doubt that your yogurt is not acrid something else, the conclusion item will taste sour.
Mughlai food is known for its particular fragrant and wealthy flavors. The taste may shift from mellow to hot. Today’s shahi paneer dish has gentle yet wealthy flavors, consequently, it gives true Mughlai taste and flavors.
Since this mughlai Shahi paneer is a regal dish, saffron is utilized. It gives an interesting flavor to the dish. Moreover, it gives a slight yellow tinge to the sauce color.
This is, as a rule, made on the extraordinary event or for extraordinary visitors as this is very wealthy. So it is not fitting to have it on an ordinary basis.
I have utilized opening green chilies, which is the as it were zesty fixing in the recipe, so utilize appropriately. I have not chopped the chilies since I needed to keep the sauce really smooth. If chopped chilies are included, it ruins the taste of the gravy.
How To Make Mughlai Shahi Paneer? (Pics)
1) Begin by placing the raw cashews into a small coliseum or vessel, and pour in about ¼ cup of clean, room-temperature water. Allow the cashews to soak for roughly 15 to 20 minutes. This softening process helps to release the natural canvases and makes them much easier to blend into a smooth, delicate consistency. However, soaking them a bit longer can enhance the texture indeed further, If you have redundant time.
2) Once the cashews have softened, drain any redundant water and transfer them into a high-speed blender or food processor. Blend the soaked cashews until they transform into a smooth, creamy paste with a silky texture, free of any lumps or graininess. You may need to stop sometimes to scrape down the sides of the vessel, ensuring all pieces are completely incorporated. The result should be a smooth, lump-free cashew paste, perfect for use in gravies, mists, goodies, or factory-ground dishes.

3) In a medium-sized saucepan, pour in ½ mug of fresh water and add the finely diced onions. Place the visage over medium heat and allow the admixture to gradually come to a gentle boil. As the heat builds, the water will begin to boil, helping to soften the onions and draw out their natural sweetness.
4) Once the admixture starts washing, reduce the heat slightly and let the onions stew gently for about 10 to 15 minutes, or until they come soft, tender, and translucent. Stir sometimes to ensure indeed cooking and to help it stick. Once the onions are completely softened, remove the saucepan from the heat and allow the admixture to cool down slightly before using it in the next step of your form.

5) While the onions are cooking and cooling, take a small colander of fresh cream and warm it gently in the microwave oven for about 20 – 30 seconds. Let them steep for many twinkles — this allows the saffron to release its beautiful golden tinge and delicate aroma into the cream, perfecting both the flavor and color of the final dish.
6) By now, the cooked onion admixture should have cooled to a manageable temperature. Transfer it to a blender or food processor and mix until it forms a silky-smooth puree. This onion base will give the curry its rich depth and texture.

7) In a heavy- bottomed visage or skillet, toast a couple of tablespoons of oil over medium heat. Once the oil painting is hot, add the whole spices — cloves, black peppercorns, a small stick of cinnamon, and a bay sprig. Sauté them for 30 to 45 seconds, or until they start to sizzle and release their warm, inviting scent. Be careful not to burn them; just a light heating is enough to spark their essential oils.
8) Add lately prepared gusto paste, garlic paste, and slit green chilies to the visage. Sauté for a many seconds until the raw smell disappears and the mixture becomes sweet.

9) Now, stir in the onion paste you prepared before, along with a pinch of salt. Mix completely to combine all the flavors.
10)Cook this onion admixture over medium heat, stirring sometimes, until utmost of the humidity evaporates. You’ll notice the paste thickening and starting to pull down from the sides of the visage. This step is pivotal for developing the base flavor, but be sure not to let the admixture brown — you’re aiming for a light, mellow curry, not a dark or caramelized one.

11) Add the set cashew paste to the visage.
12) “Gently stir to swirl the cashew paste into the onion blend, allowing it to mingle unevenly and create a tapestry of rich, velvety textures.

13) Lower the heat slightly and add plain yogurt to the visage, stirring continuously to help ripen.
14) Mix thoroughly. However, add a splash of water to acclimate the thickness to your relish if the gravy seems too thick at this point. Allow the sauce to come to a gentle poach so that all the constituents mingle together.

15) Sprinkle in the garam masala and ground cardamom for added warmth and complexity.
16) Stir to blend the spices evenly throughout the sauce.

17) Gently add the paneer cells to the visage, making sure they’re well coated with the scrumptious sauce.
18) Stir veritably gently to avoid breaking the soft paneer pieces. Let them absorb the rich flavors without losing their shape.

19) Pour in the saffron-invested cream admixture and stir delicately to combine.
20) Allow the curry to poach for another 2 twirls on low heat, just enough to let the flavors marry without overcooking the paneer. Formerly done, turn off the heat and let it rest for a moment before serving.

Once the Mughlai Paneer is fully cooked and the rich, creamy white gravy has reached its perfect consistency, it’s time to serve this royal delicacy.
Carefully transfer the warm, aromatic paneer curry into a beautiful serving bowl, allowing the luxurious sauce to gently surround each cube of paneer. For an added touch of elegance and to enhance the dish’s regal appeal, you may choose to garnish it with a few strands of crushed saffron.
This optional step not only adds a subtle golden hue but also infuses the dish with a delicate floral aroma, further elevating the flavor profile. Whether served with soft naan, buttered parathas, or fragrant basmati rice, this final presentation is sure to impress and delight anyone at the table.
Serving Ideas
For an indulgent and satisfying meal, serve the creamy and flavorful white sauce paneer alongside your favorite Indian breads such as buttered paratha, soft naan, or traditional tandoori roti. These breads not only complement the rich, mildly spiced gravy but also help scoop up every last bit of the luxurious sauce.
To elevate the experience, accompany the dish with a side of crisp onion rings or a simple yet vibrant onion lachha salad — thinly sliced onions tossed with a dash of lemon juice, a pinch of salt, and a sprinkle of chaat masala.
The tangy crunch of the onions and the zing of lemon wedges on the side act as a perfect contrast to the creamy paneer, creating a well-balanced plate that delights both the palate and the eyes.
