This Vegan Tofu Paneer Butter Masala is a creamy, rich, and comforting plant-based version of the classic Indian restaurant favorite Paneer Butter Masala.
Instead of paneer, I use tofu to make a dairy-free, wholesome, and protein-rich curry that comes together in just 30-35 minutes. Perfect for weeknights or cozy weekend dinners!
Quick Look: Tofu Butter Masala
- ✅ Recipe Name: Tofu Butter Masala
- 🕒 Ready In: 35 minutes
- 👪 Serves: 4
- 🍽 Calories: 166 per serving (estimated)
- 🥣 Main Ingredients: extra- firm tofu, cashews, Garam masala
- 📖 Dietary Info: Vegan; gluten-free; high-protein
- 👌 Difficulty: Easy - one pot, bold Indian flavors, minimal prep
SUMMARIZE & SAVE THIS CONTENT ON
Love tofu recipes? Try my rich and creamy Tofu Makhani recipe, a plant-based version of Paneer Butter Masala, and my delicious Vegan Tofu Matar Paneer, perfect for serving with basmati rice or vegan naan.
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Why You' ll Love This Curry
- Entirely vegan and dairy-free: Made without butter, cream, or paneer yet still indulgently creamy and flavorful.
- Quick and easy: Ready in under 40 minutes with simple ingredients.
- Protein-packed: Tofu adds texture and plant-based protein.
- Restaurant-quality flavor: Silky smooth gravy with the perfect balance of spice, sweetness, and richness.
- Versatile and satisfying: Delicious with naan, roti, or rice.
Ingredients Note

- Tofu: Use extra-firm tofu for the best texture. Press it for 15-20 minutes to remove excess moisture, then cube and pan-fry lightly for extra firmness.
- Tomatoes: Fresh ripe tomatoes or canned crushed tomatoes give the curry its rich red base.
- Cashews: Soaked cashews make the gravy ultra-creamy and naturally sweet.
- Aromatics: Onion, garlic, and ginger create the flavor foundation.
- Spices: Garam masala, kasuri methi (dried fenugreek leaves), turmeric, and red chili powder build the signature flavor.
- Vegan butter: Use any plant-based butter for that authentic buttery richness.
See the recipe card for a list of ingredients and quantities, plus recipe instructions. You can find the recipe card at the bottom of this post.
Variations
- High-protein version: Stir in cooked chickpeas along with tofu.
- Nut-free version: Replace cashews with ½ cup coconut milk for creaminess.
- Spice it up: Add green chili or extra red chili powder for a hotter curry.
- Add veggies: Bell peppers, green peas, or spinach make great additions.
Steps to Make Tofu Paneer Butter Masala

- Step 1: Prep tofu: Press and cube tofu. Air-fry or pan-fry until lightly golden, then set aside. (coated with one teaspoon of Garam Masala - optional)
- Soak cashews in warm water for 10 minutes.

- Place a large pan over medium heat and add 1 tablespoon vegan butter.
- As the butter melts, add cumin seeds and saute for 20 seconds.

- Add the onion and garlic cloves, and fry until they turn translucent. Add tomatoes and cook them until they are soft.

- Switch off the heat and add the soaked cashews and cilantro.

- When it has completely cooled down, blend into a smooth gravy.

- Place the same pan or a different one over medium heat, add 1 tablespoon of vegan butter, and sauté the bay leaves. Add the blended gravy and the spices, and cook for another minute. Add about 1 cup of water.

- Now, add the tofu cubes. Cook for 3 more minutes.

- Add fenugreek leaves (kasuri methi) and 1 tablespoon of vegan butter.

- Tofu Butter Masala is ready for your table! Serve hot with your favorite pairings!
Serve Your Vegan Tofu Paneer Butter Masala with
Uma's Tips
- Use vegan butter, not oil, for the best flavor.
- Air-fry at 345°F for 15 minutes or bake the tofu before adding it to the curry to prevent it from breaking.
- Adjust the consistency by adding water or plant milk if it thickens too much.
- Adding kasuri methi at the end makes a big difference in taste; do not skip this step.
Storage and Reheating
Store the leftover Tofu Butter Masala in an airtight container in the refrigerator for up to 3 days. When ready to eat, reheat the curry in a small pan or microwave-safe bowl until warm, perfect for enjoying your flavorful vegan curry again.
Tofu Butter Masala FAQ
I get this question a lot of times at the Farmers' market when I sell my spices. The best spices are Garam Masala and Kashmiri red chilli powder. Sometimes I make it with curry powder as well.
When cooked in butter masala gravy, tofu absorbs flavors beautifully and gives a very similar experience.
Extra-firm tofu works best. Softer tofu may break apart in the gravy.

More Tofu Recipes
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And let me know in the comments what you loved about it.
📖 Recipe

Vegan Tofu Paneer Butter Masala (Restaurant-Style)
Equipment
Process Shot
Check above for step-by-step pictures (most of my recipes include pictures)
Ingredients
- 2 tablespoon vegan butter
- 1 large red onion - chopped
- 2- 3 medium size tomato - diced
- 1 bay leaf
- 16 oz Extra-firm tofu
- ¼ cup cashews - soaked
- Salt to taste
- 2 teaspoon Kashmiri red chili powder
- 1½ teaspoon garam masala
- 1 teaspoon fenugreek leaves - Kasuri methi
- 2 tablespoon cilantro - chopped
- 1 teaspoon ginger - grated
- 3 garlic cloves - minced
- ½ teaspoon cumin seeds
- ¼ teaspoon turmeric powder
Instructions
- Prep tofu: Press and cube tofu. Air-fry or pan-fry until lightly golden, then set aside. (coated with one teaspoon of Garam Masala - optional) Soak cashews in warm water for 10 minutes.
- Place a large pan over medium heat and add 1 tablespoon vegan butter.
- As the butter melts, add cumin seeds, ginger, garlic, onion and fry till they turn translucent. Add tomatoes and cook them until they are soft.1 large red onion, 2- 3 medium size tomato, 1 teaspoon ginger, 3 garlic cloves, ½ teaspoon cumin seeds
- Switch off the heat and add the soaked cashews and cilantro.¼ cup cashews, 2 tablespoon cilantro
- When it has completely cooled down, blend into a smooth gravy.(add ¼ cup of water)
- Place same or different pan over medium heat add 1 tablespoon vegan butter and saute bay leaves.1 bay leaf
- Add the blended gravy, and salt and spices and cook for another minute. Add about 1 cup of water. Stir well.2 teaspoon Kashmiri red chili powder, 1½ teaspoon garam masala, ¼ teaspoon turmeric powder
- Now, add the tofu cubes, vegan butter, and fenugreek leaves. Cook for 5 minutes.16 oz Extra-firm tofu, 1 teaspoon fenugreek leaves - Kasuri methi
- When it starts to boil, switch off the heat and garnish with cilantro.
- Tofu Butter Masala is ready for your table! Serve hot with your favorite pairings!
Video
Notes
- Use vegan butter, not oil, for the best flavor.
- Air-fry at 345°F for 15 minutes or bake the tofu before adding it to the curry to prevent it from breaking.
- Adjust the consistency by adding water or plant milk if it thickens too much.
- Adding kasuri methi at the end makes a big difference in taste; do not skip this step.
YOUR OWN NOTES
Nutrition
Nutritional information is an estimation only.















Neena says
Yummy butter masala. I love your recipes and your garam masala spice too. Thanks Uma!
Susan says
I make this every month whenever my kids ask me to go out, and it’s always a special treat for all of us.
Uma Raghupathi says
Thank you Susan!
Mayuri Patel says
Such a wonderful to make a vegan version of the famous Paneer Butter Masala. The curry is so rich and creamy. Whenever I get tofu I cannot think beyond SE Asian cuisine. Usha, you've made me realize that tofu can replace paneer in so many of the Indian dishes.
Hema says
Looks yummy! Can I use coconut cream instead of cashews?
Uma Raghupathi says
Sure Hema! Please let me know how it turned out 🙂
Shikha Yadav says
This looks delicious! Can't wait to try it out