Tantalizing Creamy Paneer Korma
This delicious creamy paneer korma is perfectly spiced, aromatic, and rich. It gets its unique richness from coconut milk and cashew nuts and is best enjoyed with naan.
We all enjoy paneer and I make it quite often. We enjoy it in various recipes, but one of our all-time favorite is this paneer korma recipe. It is rich, creamy, delicate, aromatic, luxurious, and oh, so delicious! We never get enough of it. The creaminess comes from the cashew nuts and the richness from the coconut milk that is added to the curry to make it perfectly irresistible.
The Ingredients for Creamy Paneer Korma
So many delicious ingredients are used in this Indian curry.

Ingredients List for this Indian Curry:
- 1 onion
- 3 garlic cloves
- 1 inch ginger
- 1 chili
- 3 tablespoons vegetable oil
- 1/2 cup sliced mushrooms (optional)
- 1/2 cup raw cashew nuts
- 1 tablespoon curry powder
- 1 teaspoon turmeric
- 1 teaspoon garam masala
- 1/2 teaspoon cayenne
- 1/2 teaspoon cardamom powder
- 1 teaspoon cumin
- 1 tablespoon brown sugar
- 1 large tomato
- 1/2 cup full fat coconut milk
- 4 tablespoons thick yogurt
- salt to taste
- 1 package of paneer (450 grams)
- 1 cup frozen or fresh peas
- 1 cup chopped carrots
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The Cashew Nuts
In order to get a smooth creamy rich paneer korma, we need to use some fresh cashew nuts. Let’s start by soaking the cashew nuts in some water – just enough water to cover them. Allow them to soak for about 10 minutes then drain the liquid (reserve the liquid for later use).

Using a food processor or blender puree them. Do not turn them into a paste, instead puree them so they are a little grainy. I find that gives the korma a better taste.

The Masala for this Vegetarian Indian Curry
Now we can start working on the “masala”. Let’s start by using a blender or food processor to blend the onions, garlic, ginger, and chili. You can seed the chili if you prefer a milder korma. You can add a tablespoon of water to the processor if needed. Pour the oil into a large pot or pan and heat over medium heat. Add the onion puree to the pan and cook for about 7-8 minutes. Be careful when you add the puree to the pan. It will splatter, so keep a lid handy just while adding the puree. Remove the lid once the onion puree is added to the pan.
Once the onions etc., have cooked, the oil will start to separate a little from the puree. Slice and add the mushrooms (if using) to the pan and toss for about a minute only. We do not want the mushrooms to get soggy. Now we can add the pureed cashew nuts and cook for about 1 – 2 minutes. This will allow the cashew nuts to get a little nuttier and the liquid to dry up.

Adding the Spices to Creamy Paneer Korma
It’s time to add the spices to the pan. Add the curry powder, turmeric, cayenne, garam masala, cardamom powder, cumin powder, and brown sugar to the pan. Mix well and cook for about one minute. Using the food processor, puree the tomato as well and add it to the pan. Cook for another 4-5 minutes or until the liquid has mostly dried up and the oil starts to separate from the “masala”.

In a small bowl combine the coconut milk and the yogurt and add them to the pan. Also, add the salt at this point. Mix well again so that it becomes one homogenous mixture. We can add the vegetables to the pan at this point. Chop the carrots into small pieces and add them to the pan and allow them to cook for about 4 or so minutes – until they start to get a little tender. Cover the pan with a lid to help the carrots cook. I use baby cut carrots because they cook faster.
The Paneer
Chop the paneer into cubes and add it to the pan and mix so that the cubes are well coated with the spice mix. Add the reserved water in which the cashew nuts were soaked (about 1/2 cup). Cover the pan again and cook for about 1-2 minutes. Now we can add the peas and cook for another 2 minutes or so uncovered. Just to allow the peas to soften a little. If the gravy is too thick, you can add a few tablespoons of water to thin it out before you add the peas. If it’s too thin, then cook it uncovered for a few minutes to allow the liquid to evaporate.

Serving suggestions:
Malai kofta can be served with a variety of things:
- Rice – basmati long grain rice – plain or cumin rice.
- Roti (Indian flat bread) – made with a blend of whole wheat and white flour.
- Naan – garlic or plain naan.
- Paratha – pan fried flatbread. Plain or stuffed.
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Creamy Paneer Korma
Course: Entree, Indian CuisineCuisine: IndianDifficulty: Easy6
servings10
minutes25
minutes239
kcal35
minutesThis delicious creamy paneer korma is perfectly spiced, aromatic, and rich. It gets its unique richness from coconut milk and cashew nuts and is best enjoyed with naan.
Ingredients
1 onion
3 garlic cloves
1 inch ginger
1 chili
3 tablespoons vegetable oil
1/2 cup sliced mushrooms (optional)
1/2 cup raw cashew nuts
1 tablespoon curry powder
1 teaspoon turmeric
1/2 teaspoon cayenne
1 teaspoon garam masala
1/2 teaspoon cardamom powder
1 teaspoon cumin
1 tablespoon brown sugar
1 large tomato
1/2 cup full fat coconut milk
4 tablespoons thick yogurt
salt to taste
1 package paneer (450 grams)
1 cup frozen or fresh peas
1 cup chopped carrots
Directions
- Soak the cashew nuts in some water so they soften up a little – for about 10 minutes or so. Drain the liquid and puree them in a food processor to a rough paste. Keep the liquid for later use.
- Using a blender, puree the onion, garlic, ginger, and chili. Add a spoonful of water if needed.
- Heat the oil in a pan and add the puree and cook for about 7-8 minutes. Until all the liquid has dried up and the oil starts to separate from the onions.
- Slice and add the mushrooms to the pan if using.
- Once the onions have cooked, add the pureed cashew nuts to the pan and cook for a further 1-2 minutes or until the liquid dries up.
- Add curry powder, turmeric, cayenne, garam masala, cardamom powder, cumin powder, and brown sugar to the pan. Mix well so that the spices get well mixed into the puree and cook for about 1 minute.
- Using the food processor puree the tomato and add to the pan. Allow it to cook on medium heat for about 4-5 minutes or until the oil starts to separate from the spice mix.
- In a bowl combine the coconut milk and the yogurt and add them to the pan. Also, add the salt at this point. Mix well again so that it becomes one homogenous mixture.
- Chop the carrots into small pieces and add them to the pan and allow them to cook for about 4 or so minutes – until they start to get a little tender.
- Chop the paneer into cubes and add it to the pan and mix so that the cubes are well covered in the spice mix. Add the reserved water in which the cashew nuts were soaked (about 1/2 cup).
- Add the peas to the pan and cook for about 2 minutes.
- Enjoy hot with a side of fresh home made naan or long grain basmati rice.
