This is without a doubt, our favourite paneer dish. Soft and succulent paneer pieces lathered in a silky, creamy and tangy curry is the absolute perfect combination under the sun. The creamy tomato-based curry that features in this dish is none other than the makhani gravy that you may have heard of in your local Indian restaurant. Makhani in Hindi means creamy while Shahi means royal. Some also refer to this kind of curry as butter masala. All implying that this is by no means a healthy dish or an everyday curry, but something special. That's why, at festivals and celebrations, shahi paneer is often at the table.
There are a few elements that elevate this dish and take it from being just another tomato sauce to the next level.
At my parents home, we eat shahi paneer for Diwali and Karvachauth every year without fail. If someone is coming over for dinner, and North India food is on the menu, then shahi paneer will certainly be served. It's also a favourite among restaurant menus and pairs as beautifully with naan as it would be the humble homemade roti. Weddings, parties, pot-lucks, you name it and shahi paneer is always there.
Whether you call it paneer butter masala, paneer makhani or shahi paneer, give this dish a try. Once you get the hang of making this curry, you can make variations of this dish by adding vegetables instead of paneer. This curry also goes well with koftas or chicken.