Paneer Lababdar (Restaurant Style Recipe)

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Paneer Lababdar is an easy-to-prepare, restaurant-style dish of paneer (Indian cottage cheese) in a creamy, mildly tangy and faintly sweet gravy. Onions, tomatoes, cashews and spices make this a rich, flavorful and delicious recipe. This vegetarian Paneer Lababdar recipe is also naturally gluten-free.

paneer lababdar served in a black bowl with ginger julienne on top and text layover.

What is Paneer Lababdar

Paneer Lababar is a popular paneer gravy dish and can be found on the menu of many Indian restaurants. There are a few variations of preparing this rich dish.

My paneer lababdar recipe is more Punjabi style than Mughlai style with the addition of onions, tomatoes, cashews and spices.

It does not rely heavily on the usage of plenty of nuts, dry fruits or seeds. Cashews are the only nuts added in the recipe.

Paneer Lababdar is truly a dish that you will always love to make for special days or festival days. Its richness, creaminess and deliciousness will wow you every time. Perfectly apt to make for festive or special occasions.

Paneer Lababdar gravy is made from a spiced tomato and cashew paste that is then sautéed with onions, more spices and herbs, has a lovely tang to it and is full of flavor. The addition of sugar and cream give the dish a creamy and faintly sweet taste.  

Ingredients You Need

You need your regular Indian pantry staple ingredients to make this restaurant style paneer lababdar recipe.

  • Paneer (Indian cottage cheese): This is the main ingredient in the dish and it is important to use a good quality paneer. In fact, as with all my paneer recipes, I recommend using Homemade Paneer. This ensures freshness and avoids any hidden ingredients and preservatives found in store-bought paneer.
  • Tomatoes: Giving the dish a bit of tang, tomatoes are an important ingredient in the gravy. Be sure to choose tomatoes that aren’t too tangy or sour.
  • Cashews: The creamy consistency in paneer lababdar comes from cashews. The cashews are ground to a paste with the tomatoes. Cashews also add a lovely sweetness to the dish.
  • Cream: Adding cream also adds to the sweetness and richness in the gravy making it a restaurant style dish.
  • Onions: In the curry, onions are not pureed, but chopped and lightly caramelized. Thus they add some sweetness and a slight sharp flavor to the curry.
  • Spices and Herbs: Most of the spices and herbs used in this recipe are common and you probably already have them in your kitchen. The garam masala powder can be purchased, but is also a great spice to make from scratch and have on hand. Here I share the recipe for making Garam Masala Powder.
Step-by-Step Guide

How to make Paneer Lababdar

Preparation

1. To a small pan add the following listed ingredients:

  • 1.5 cups chopped tomatoes (Use tomatoes that are not too tangy or sour)
  • 10 to 12 cashews
  • 1 inch chopped ginger
  • 2 to 3 chopped garlic cloves (medium-sized)
  • 1 green cardamom
  • 2 cloves
  • ½ cup water
chopped tomatoes, spices and cashews and water in a pan

2. Switch on the stovetop and simmer this mixture on a low heat.

tomatoes and cashews being simmered in water

3. Cook until the tomatoes are softened. If the water dries up and the tomatoes are not softened, then add about 2 to 3 tablespoons water and continue to cook. When I cooked, almost all the water had evaporated.

tomatoes have softened

4. Allow this mixture to become warm or cool completely at room temperature. Transfer all of the ingredients to a grinder or blender jar.

softened tomatoes ,cashews added in a blender

5. Grind or blend to a smooth paste. There should not be any cashews or tomato chunks in the paste.

You may add some water if required while grinding or blending. Set this ground tomato-cashew-spices paste aside.

tomato-cashew paste ready to make paneer lababdar recipe

Sautéing onions and tomato paste

6. Heat 2 tablespoons butter in a pan, kadai or wok. You can also use ghee (clarified butter) or a neutral-tasting oil.

Heat the butter on a low to medium heat ensuring that it does not burn.

butter being melted in a pan

7. Add 1 tej patta (Indian bay leaf) and saute for a couple of seconds.

tej patta added in the melted butter

8. Add ½ cup finely chopped onions.

finely chopped onions added

9. Stir and mix well.

onions being sautéed

10. Then continue to saute as well as stir and cook until the onions become light golden or golden on medium-low to medium heat.

onions have turned to a light golden

11. Then add the tomato-cashew-spices paste. The mixture will splutter if there is water in it, so be careful.

tomato-cashew paste added to make paneer lababdar

12. Stir and mix thoroughly.

tomato cashew paste mixed with the sautéed onions

13. Add the following ground spice powders:

  • ½ teaspoon cumin powder (ground cumin)
  • ½ teaspoon coriander powder (ground coriander)
  • ½ teaspoon red chili powder or cayenne pepper
spice powders added

14. Stir the ground spices. Saute this masala on low to medium-low heat. You will see the masala clumping and gathering around itself.

spice powders mixed

15. Sauté until you see fat leaving the sides of the masala paste. The masala will also look glossy and shiny.

sautéing the masala paste with oil being released at the sides

Making Paneer Lababdar

16. Then add 1 cup of water to the perfectly sauteed masala.

water added

17. Mix very well.

water mixed

18. Add 1 or 2 slit green chilies.

slit green chilies added

19. Stir and allow the gravy to come to a simmer on medium-low to medium heat.

simmering the gravy

20. Then season with salt according to your taste preferences.

salt being added with a measuring spoon

21. Add sugar. I added ½ teaspoon of sugar but you can add as per your taste.

sugar being added with a measuring spoon

21. Add 200 grams paneer which has been cut into cubes or squares. Also add 2 tablespoons grated paneer.

Here I used fresh homemade paneer. If using frozen paneer, then keep it in warm water for some minutes and then slice as well as grate it.

grated paneer and paneer cubes added to make paneer lababdar

22. Gently mix and switch off the heat.

paneer mixed with the gravy

23. Then sprinkle 1 teaspoon kasuri methi (dry fenugreek leaves) which have been crushed along with ¼ teaspoon garam masala powder. Mix very well again.

kasuri methi and garam masala powder added in the paneer lababdar gravy

24. Add ¼ cup low fat cream or 1 to 2 tablespoons of heavy whipping cream.

cream added to paneer lababdar gravy

25. Mix again gently very well taking care that the paneer cubes do not break. You can also add 1 tablespoon of butter at this step or dot the gravy with butter while serving. This is optional.

cream mixed and paneer lababdar is ready to be served

26. Garnish paneer lababdar with chopped coriander leaves (cilantro) and ginger julienne.

Paneer labadar goes very well with Indian flatbreads, including roti, naan, or pudina paratha. Also, this creamy gravy can be served with jeera rice or vegetable pulao. 

paneer lababdar served in a black bowl with ginger julienne on top

FAQs

Can I use canned tomatoes or tomato puree?

Yes definitely. Add 1.5 cups of canned tomatoes while blending cashews. You do not need to cook the canned tomatoes with cashews. For tomato puree, add ¾ cup of it directly when sautéing with the cashew paste. You just need to make the cashew and spices paste if you use tomato puree.

What can I use instead of kasuri methi?

Kasuri methi are dried fenugreek leaves. If you don’t have them, just skip them.

Can I make paneer lababdar without onion and garlic?

Yes of course! To get the mild flavors of onion and garlic without actually using them in the recipe, add 1 pinch of asafetida or hing (that is if you have it) when sautéing the tomato-cashew paste.

Can I skip cream?

Yes you can easily skip adding cream.

Can i use malai?

Malai which is the clotted cream that collects on the top of boiled milk has to be whipped to a smooth flowing consistency before you add it to the gravy.

What can I replace cashews with?

Add almonds which have been blanched in hot water for 30 minutes with their peels removed.

Can I do the dhungar method to this paneer lababdar?

Yes sure you can do that. Dhungar method will make your paneer lababdar have truly smoky restaurant style flavors.

How do I make a vegan recipe of paneer lababdar?

Replace firm tofu, seitan, tempeh with paneer. Skip adding cream altogether or replace it with coconut cream. Add a neutral tasting oil instead of butter.

Can I make a large batch and freeze it

Yes you can definitely do that. My recipe can be easily scaled. If freezing, paneer lababdar gravy stays well for about a month. In the refrigerator, it stays good for a couple of days.

More Restaurant Style Paneer Curries!

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paneer lababdar in a black bowl with ginger juliennes on top.

Paneer Lababdar (Restaurant Style Recipe)

Paneer Lababdar is an easy-to-prepare, restaurant-style curry of paneer (cottage cheese cubes) in a creamy, mildly tangy and faintly sweet gravy. This vegetarian Paneer Lababdar recipe is also naturally gluten-free.
4.86 from 114 votes
Prep Time 15 minutes
Cook Time 25 minutes
Total Time 40 minutes
Cuisine North Indian, Punjabi
Course Main Course
Diet Gluten Free, Vegetarian
Difficulty Level Moderate
Servings 4
Units

Ingredients

For tomato-cashew paste

  • 1.5 cups chopped tomatoes (ripe and red), 250 grams
  • 10 to 12 cashews
  • 1 inch ginger – chopped
  • 2 to 3 garlic (medium-sized) – chopped
  • ½ cup water
  • 1 green cardamom
  • 2 cloves

More ingredients

  • 2 tablespoons Butter
  • 1 tej patta (Indian bay leaf)
  • ½ cup finely chopped onions – 100 grams
  • ½ teaspoon cumin powder (ground cumin)
  • ½ teaspoon Coriander Powder (ground coriander)
  • ½ teaspoon red chili powder or kashmiri red chili powder or cayenne pepper
  • 1 or 1.25 cups water or add as required
  • 1 or 2 green chilies or serrano peppers – slit
  • salt as required
  • ¼ to ½ teaspoon sugar or add as required
  • 200 grams Paneer (cottage cheese)
  • 2 tablespoon grated paneer
  • ¼ teaspoon Garam Masala
  • 1 teaspoon kasuri methi (dry fenugreek leaves) – crushed
  • ¼ cup low-fat cream or 1 to 2 tablespoons heavy whipping cream
  • 1 tablespoon Butter added later – (optional)

For garnish

  • 1 tablespoon chopped coriander leaves (cilantro leaves)
  • 1 inch ginger – julienne

Instructions
 

Preparing tomato-cashew paste

  • Take chopped tomatoes, cashews, chopped ginger and garlic, green cardamom, cloves and water in a small pan. Use tomatoes which are not too tangy or sour.
  • Turn on the stovetop and simmer this mixture on a low heat.
  • Cook until the tomatoes are softened. If the water dries up and the tomatoes are not softened, then add about 2 to 3 tablespoons water and continue to cook.
  • Allow this mixture to become warm or cool completely and add to a grinder or blender jar.
  • Grind to a smooth paste without any cashews or tomato chunks or pieces. You may add some water if required while grinding. Keep this ground tomato-cashew-spices paste aside.

Sautéing onions and tomato-cashew paste

  • Heat butter in pan or kadai or wok. Add the tej patta and sauté for a couple of seconds.
  • Add finely chopped onions. Stir well.
  • Then continue to saute as well as stir and cook till the onions become light golden or golden.
  • Then add the tomato-cashew-spices paste. The mixture will splutter if there is water in it, so be careful. Stir very well.
  • Add cumin powder, coriander powder and red chili powder.
  • Stir and saute this masala. You will see the masala clumping and gathering around itself.
  • Saute till you see fat leaving the sides of the masala paste.

Making paneer lababdar

  • Then add water. Mix very well.
  • Add the slit green chilies.
  • Stir and allow the gravy to come to a simmer. Then season with salt and sugar.
  • Add paneer cubes and grated paneer.
  • Gently mix and combine.
  • Then sprinkle kasuri methi which has been crushed with the garam masala powder. Stir very well again.
  • Lastly add the low-fat cream or heavy whipping cream. Switch off the heat & combine very well. You can also add 1 tablespoon butter at this step. This is optional.
  • Garnish paneer lababdar with chopped coriander leaves and ginger julienne. Serve with chapati, tandoori roti or naan. It also goes well with cumin rice or veg pulao.

Video

Nutrition Info (Approximate Values)

Nutrition Facts
Paneer Lababdar (Restaurant Style Recipe)
Amount Per Serving
Calories 353 Calories from Fat 270
% Daily Value*
Fat 30g46%
Saturated Fat 18g113%
Cholesterol 81mg27%
Sodium 442mg19%
Potassium 205mg6%
Carbohydrates 12g4%
Fiber 3g13%
Sugar 4g4%
Protein 10g20%
Vitamin A 1021IU20%
Vitamin B1 (Thiamine) 1mg67%
Vitamin B2 (Riboflavin) 1mg59%
Vitamin B3 (Niacin) 1mg5%
Vitamin B6 1mg50%
Vitamin B12 1µg17%
Vitamin C 14mg17%
Vitamin D 1µg7%
Vitamin E 1mg7%
Vitamin K 7µg7%
Calcium 303mg30%
Vitamin B9 (Folate) 13µg3%
Iron 1mg6%
Magnesium 23mg6%
Phosphorus 52mg5%
Zinc 1mg7%
* Percent Daily Values are based on a 2000 calorie diet.

This Paneer Lababdar Recipe post from the blog archives first published in Feb 2015 has been updated and republished on June 2022.

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Welcome to Dassana's Veg Recipes. I share vegetarian recipes from India & around the World. Having been cooking for decades and with a professional background in cooking & baking, I help you to make your cooking journey easier with my tried and tested recipes showcased with step by step photos & plenty of tips & suggestions.

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235 Comments

  1. Thks 4 such a nyc recipe bt i have a query, i e. Is it necessary to boil tomato and cashew ? And can we substitute ghee instead of butter ?5 stars

    1. welcome twinkle. you can skip boiling the tomatoes and cashews. though its better to soak the cashews for 30 minutes in hot water, so that its easier to grind them. yes you can add ghee instead of butter.

    1. vidhu sour cream will change the taste of the dish hope this help’s you. try using fresh cream preferably.

  2. Super yummy recepi…..I have never prepared something so tasty. I myself wanted to finish the entire thing 🙂
    Thanks a lot for the recepi. But just one query wat were 250g tomato for ? As per your recepi, only 1.5 cup tomato were used. Have tried your other recepis also like peas paratha, mushroom recepis, shahi and palak paneer. They all were yum and not to miss the best idli I prepared and my kid loved me for it as I am North Indian and making it was not easy for me.
    Again as repeated several times but yet not enough I guess thanks !!!!!!4 stars

    1. thanks a lot shazia for sharing your experience. you are most welcome. the 250 grams is the weight of tomatoes and it the same 250 grams tomatoes, when chopped yields 1.5 cups. i give both weight and cup measurements as its easier for the reader.

  3. Are there any vegetables I can use instead of paneer as I don’t have any paneer. Would perhaps potatoes or cauliflower be a good substitute ?

    1. you can use milk powder, but will make the gravy slightly sweet. so i would suggest to add 1/2 to 1 tbsp. do not add any sugar if adding milk powder. also add milk powder before you add water.

    1. addition of cream balances the tang of the tomatoes and gives a nice smooth creamy texture to the gravy. skip it if you do not want to add cream. you can also add 1/2 to 1 tbsp of milk powder instead of cream. add milk powder just before you add water.

  4. Thnx once again for this delicious recipe…hats of to uuu…all ur recipes are mind blowing…ur blog is a treasure for ppl like me…5 stars

  5. Hi dassana..
    Tried this recipe today…nd it was great:)
    Thanku so much:)
    Wenever i hv to make any veg dish first thing i do is go to ur website:)
    Great job.keep it up.
    God bless u:)4 stars

    1. you are welcome pooja thankyou for trying the paneer lababdar recipe and god bless you too.

  6. Hats off to u ma’am i felt like i was at a hotel and havin this delicious panner…ur measurements are accurate and i love how u give us step by step instructions Thnx a lot…?5 stars

    1. we are pleased to know this riya thankyou so much for your kind words 🙂 and you are always welcome.