1/4teaspooncayenne pepperIf you want your butter paneer to be very mild, reduce the amount to 1/8 teaspoon or just a pinch. Increase to 1/2 teaspoon for spicier butter paneer.
1poundpaneercut into 1/2" to 3/4" cubes
For the Sauce
2Tablespoonscanola oilor other neutral-flavored cooking oil
1cuptomato pureeor diced tomatoes or crushed tomatoes
1/2cupwhipping cream
1Tablespoongranulated sugar
2Tablespoonsunsalted butter
Instructions
For the Paneer
Stir together 1/4 cup plain regular or Greek yogurt, 1 Tablespoon canola oil, the minced garlic, 1 teaspoon garam masala, 1/2 teaspoon ground turmeric, 1/2 teaspoon kosher salt, and 1/4 teaspoon cayenne pepper in a medium bowl. Add the cubed paneer and toss it in the sauce until it's evenly coated. Place the bowl in the fridge to marinate while your prep the sauce, or for up to 12 hours (overnight).
For the Sauce
Heat 2 Tablespoons canola oil in a large saucepan or medium Dutch oven over medium heat. Add the minced onion, 1 Tablespoon tomato paste, and 1 teaspoons kosher salt. Cook until the the onion becomes soft and the tomato paste darkens, about 5-8 minutes.
Stir in the minced garlic and grated ginger and cook until fragrant, about 1 minute. Stir in 1 Tablespoon garam masala, 2 teaspoons paprika, and 1/4 teaspoon ground cinnamon and cook for another minute.
Stir in 1 cup tomato puree and cook until it comes to a simmer, about 2-3 mintues. Stir in 1/2 cup whipping cream and 1 Tablespoon granulated sugar, and remove the saucepan from the heat.
Use an immersion blender to puree the sauce (alternatively, you can use a traditional blender, but I recommend letting the sauce cool a little bit before hand and/or blending in 2-3 batches to prevent the steam from blowing the lid off the blender).
Return the pot to medium heat and stir in 2 Tablespoons unsalted butter until it melts into the sauce. Stir in the cubed paneer and its marinade and cook until heated through, about 3-5 minutes.
Serve the butter paneer over rice and/or with naan or parathi bread.