How to make vegetarian butter chicken using tofu or paneer (aka paneer makhani). It is a delicious, wholesome, comforting mid-week meal that is gluten-free and can be made dairy-free and easily adapted to 100% vegan butter chicken too with just a couple of ingredient swaps!

I recently shared a method for making homemade garam masala spice with this exact recipe in mind. Murgh makhani (aka butter chicken) is a creamy, rich Indian curry that I’ve tweaked to a vegan or vegetarian butter chicken alternative – using homemade tofu or homemade paneer (aka paneer makhani/paneer butter masala). While I’ve previously shared recipes for garlic naan and other curries, including Thai green curry and red curry, this is the first time I’m sharing my take on an Indian curry, so, I hope you enjoy it!

Butter chicken was traditionally made as a way to help the dry, unsold tandoori chicken to regain moisture and add flavor. The makhani sauce is a buttery gravy with tomatoes and cream for a silky-smooth texture and rich flavor. In the UK, it’s fairly similar to Tikka Masala too.

This vegetarian butter chicken, however, contains no chicken at all! Instead, you can make a vegetarian version with paneer (paneer makhani) or a vegan butter chicken with tofu (tofu makhani) and just a couple of ingredient swaps!

The tofu is baked (or air fried) in a particular way that helps to yield a slightly ‘chewy’ texture that makes it more ‘chicken’-like in texture. It then simmers in the makhani sauce, soaking up lots of flavors.

The result is a warm, comforting, wholesome mid-week meal that everyone will love. Plus, it’s adaptable too – adapt the creaminess, the spice levels, the thickness – all to your personal preference!

The vegetarian/vegan butter chicken ingredients

The Protein

• Tofu: use firm or extra firm tofu to make tofu makhani. I used homemade tofu, which I’d pressed enough to be firm. If you’re using store-bought tofu that comes in water, you’ll need to press it for 30 minutes first.
• Cornstarch: needed to help the tofu crisp up slightly when baked.
• Olive oil: also used to help the tofu slightly crisp up while baking.

OR

• Paneer: for a vegetarian paneer makhani alternative, you can swap out the tofu for paneer (I use homemade paneer).

The Makhani Sauce

• Garam masala: I use homemade garam masala. Feel free to use a store-bought option if needed, but the flavor will vary as each brand is different.
• Paprika: this is optional, but something I personally like to use.
• Ghee: I used homemade ghee. Alternatively, for vegan butter chicken, you could use different cooking oil or vegan butter.
• Tomato: I used a combination of fresh tomatoes and homemade tomato paste. If you can’t source fresh, good quality tomatoes, use high-quality tinned tomatoes, then decrease the amount of stock added by ¼ cup to make up for the extra liquid.
• Aromatics: garlic, onion, and ginger are a must. I also used a green chile for spice (optional).
• Coconut milk: I used canned coconut milk – coconut cream would also work and be even creamier. You could alternatively use cashew cream or regular dairy cream. When making murgh makhani (with chicken) – the chicken fats help add richness along with dairy cream – I use coconut milk to make up for that since I’m making tofu butter chicken.
• Vegetable stock: also, not traditional (usually just water and salt is used) – but I love the extra flavor from using homemade vegetable stock.

Other optional Add-ins

• Cumin
• Curry leaves
• Pinch of sugar: helps to enhance the flavors within the curry.

I also used a little dried fenugreek and fresh parsley to garnish.

How to make tofu makhani

Step 1: Bake the tofu

If you’re using tofu that came packed in water, you’ll first need to press the tofu. This will take around 30 minutes – so plan for this time ahead.

Then, cut the tofu into cubes around 1 inch/2.5cm in size. Pat the pieces dry and then toss them in cornstarch (you can do this in a bowl or place everything in a bag and shake). And brush with a bit of oil.

To Air Fry: Air fry for 10-15 minutes at 400ºF/200ºC until browned and a little bit crispy (it doesn’t NEED to be too crispy though my air fryer version were very crisp).

To Oven Bake: Place the tofu pieces of a parchment-lined tray and bake in the oven for 20-30 at 400ºF/200ºC – until golden brown.

The tofu will become golden brown and slightly crispy. It won’t taste of anything but will soak up the flavors from the Makhani sauce.

Step 2: Sauté the vegetables for the makhani sauce

This can be done while the tofu cooks.

First, chop the onion and mince the garlic, ginger, and chili (optional).

Heat up the ghee(or vegan butter) in a large pan and sauté the onion for 1-2 minutes. Then add the chili, garlic, and ginger and cook for a further 1-2 minutes.

Then add the tomato paste, garam masala, and paprika (optional) and cook for a further two minutes.

There are two ways to introduce the fresh tomatoes to this makhani sauce. First, you could add them in with the tomato paste and cook for a silkier texture.

Alternatively, you can add them raw to the food processor in the next step. The flavor and texture will vary based on which you choose – so feel free to experiment.

Step 3: Blend and reduce the makhani sauce

Add the sautéed mixture, tomatoes (if they weren’t cooked), and the stock (or salted water) to a food processor and blend into a runny paste.

Transfer that back to the pan – it’s now time to reduce and thicken it. At the same time, add your tofu (or paneer) to the pan too.

Simmer the tofu butter chicken sauce on medium-low heat for around 20 minutes. Then, optionally, add the coconut milk and simmer for a further 10 minutes or less if you want a slightly thinner sauce.

Give the tofu makhani sauce a taste and adjust the seasoning if necessary (since I use stock, I don’t add extra salt. You may want to, though). The vegetarian or vegan butter chicken is ready – time to serve!

How to serve vegetarian butter chicken

This tofu/paneer makhani will taste wonderful when served with:

• Rice: you could serve this with jasmine rice, basmati, or brown rice. Alternatively, omit the rice for quinoa or low-carb cauliflower rice.
• Bread: like roti or naan.
• Yogurt: a little natural yogurt (or dairy-free alternative)

I also garnished my tofu butter chicken with a little dried fenugreek (perfect for authentic murgh makhani flavor!) and parsley.

How to store

Fridge: any leftover vegan/vegetarian butter chicken can be stored in an airtight container in the refrigerator for between 3-4 days.

Freezer: allow it to cool completely before transferring to freezer-safe container/s and freezing for up to two months. Thaw it overnight in the fridge before reheating.

Reheat: you can reheat the dish either on the stovetop of medium-low heat or in the microwave.

FAQs

What can I use instead of tofu or paneer for vegetarian butter chicken?

If you have neither tofu nor paneer, you could also use vegetables within this vegetarian butter chicken recipe. I suggest cauliflower and/or potatoes (white or sweet potato), zucchini, green beans, etc. Cooked chickpeas would also make for a great high-protein vegan butter chicken option.

Can I make the vegetarian butter chicken mild vs. spicy?

Quickly adapt this recipe to your spice level by adjusting the amount of chile powder used. For a mild curry, add none. For medium, add about 1/5 – ¼ tsp, and for spicy, add ½ tsp+.

Recipe otes

• Using the food processor: ff you cook the tomatoes in with the rest of the vegetables, then there’s no need to use a food processor at all. I love how silky it makes the sauce – but it is an optional step.
• If you use paneer: no need to bake it, just add it into the pan in the last 5 minutes before serving.
• Adapt the cream: change the amount of coconut milk/cream you add to the recipe based on how creamy you want it. Feel free to use dairy cream if you’re making vegetarian butter chicken.
• To marinate the tofu: to give the tofu extra flavor, you could optionally marinate it in a simple mix with some garam masala, garlic powder, and optionally a little turmeric or paprika. Add these at the same time as dusting with the cornstarch and olive oil, marinate for a few minutes, then bake as usual.
• Adding more vegetables: this may not be traditional, but you could load up on veggies further in this vegan butter chicken recipe by adding them to the pan while it simmers: peas, sweetcorn, green beans, etc. I love to pack in veggies in my meals, and this is an easy way to do so!
• Paneer makhani vs. paneer butter masala: I’m not sure if, when using paneer for this recipe, it would be closer to a paneer makhani recipe or paneer butter masala. For those who are more familiar with the dishes, let me know in the comments.

Relates recipes

• Homemade Garlic Naan Bread (Indian Flatbread)
• Chana Masala (Vegan Chickpea Curry)
• Creamy Vegan Thai Green Curry
• Easy Thai Red Curry (Vegetarian/Vegan Options)
• DIY How To Make Paneer At Home
• How To Make Crispy Baked Tofu (Breaded Tofu)
• How To Make Tofu at Home – Two Simple Methods

If you try this vegetarian/vegan butter chicken recipe, I’d love to hear your thoughts/questions below. Also, I’d really appreciate a recipe card rating below, and feel free to tag me in your recipe recreations on Instagram @Alphafoodie!