Paneer Lababdar Recipe

Paneer Lababdar is a rich and creamy restaurant style paneer curry in a buttery onion-tomato gravy. This indulgent punjabi & mughlai style paneer dish has a mild sweet & tangy flavor profile. What makes this curry unique is a delicate lacey gravy, achieved by incorporating grated paneer into the sauce.

Serve this luscious north indian vegetarian curry with naan, tandoori roti or parathas, jeera rice or roti for a comforting meal anytime.

A true blue north indian like me, needless to say, loves paneer! In Delhi restaurants, you will find all sorts of paneer dishes and this finger licking paneer variation used to be one of my favorite things to order when eating out.

Paneer or chicken lababdar is a common dish on menus of north indian restaurants and dhabas(road style diners). If paneer in creamy gravy is your favorite, you will really love this restaurant style paneer lababdar. Paneer lababdar is slightly different from other paneer recipes like paneer makhani or paneer tikka masala in terms of having a rich texture and taste. 

About Paneer Lababdar

What is the meaning of Lababdar

I am not sure if it belongs to Hindi or Urdu, however my grandmother often used this word in context of temptation. Labab means to drool.Lababdar dishes are said to be so enticing that they can make one's mouth water just by looking at them.

In paneer lababdar you will bite into soft cubes of paneer in a onion-tomato gravy  to which grated paneer is added. Paneer lababdar is not as smooth in texture as paneer makhani, paneer korma or shahi paneer, however the sauce is equally comforting, thick and super flavorful.

My recipe is somewhere in between the mughlai & punjabi preparations. I use aromatic spices like green cardamom & cloves and cashwenuts in my recipe finishing it with kasuri methi & garam masala to add a punjabi flair.

Paneer lababdar gravy taste mildly sweet and tangy. It has a strong aroma & flavor of spices like green cardamon & cinnamon, however the sauce is not too hot. We only use kashmiri chilies powder (paprika) that mainly gives the sauce a beautiful color. However, you can add a few sharp green chillies or serrano peppers during cooking the sauce to give it a kick.

Why I love this recipe

• Indulgent rich gravy making it perfect to serve for special occasions or festive meals on Diwali & Holi.
• A treat for paneer lovers - If you are a hardcore paneer lover, this dish feature paneer in two ways-paneer chunks as well as grated paneer is added to sauce.
• Texture of the Sauce - Additon of grated paneer to the sauce adds a ton of pleasing texture that is loved by anyone who likes layers of texture in their food.
• Restaurant Style - Making restaurant like dishes can feel intimidating to few, however this paneer lababdar recipe is easy and can be put together in roughly 40-45 minutes. Plus, you don't need any fancy ingredients.
• Make Ahead Sauce- You can make this gravy and store refrigerated or freeze it.
• Use gravy base for different kind of protein - If you don't want to make with paneer, you can add eggs, shrimp or chicken to this gravy. It works beautifully. See tips section below to see how.

Ingredients

• Paneer - Use store-bought paneer or use fresh homemade paneer. I use full fat or malai paneer in my cooking.
• Butter - Gives the best rich flavor to the sauce.
• Tomatoes- Fresh tomatoes (I like a combination of roma & campari tomatoes). The flavor of the sauce depends a lot on tomatoes so use the best you can find. Don't use too sweet or too sour tomatoes. You may use canned tomato sauce too.
• Cashew- You may use a combination of nuts like almonds or cashews. I use only raw cashews. Don't skip cashews completely.
• I use fresh garlic & ginger but ginger-garlic paste is fine too. 
• Spices (Whole) - Bay leaves, Cinnamon, Cloves, Green Cardamom
• Spice Powders - Kashmiri Red Chili Powder(or paprika), Cumin Powder, Coriander Powder & Garam Masala
• Heavy Cream- Add extra richness to sauce. See FAQ section if you want to skip.
• Other Ingredients - Onions, Salt, Sugar, kasoori methi (dry fenugreek leaves)

How To Make Creamy Paneer Lababdar (Step By Step Pictures)

Preparation

• Bring water to a boil. Add cloves, cardamom, tomatoes, ginger, garlic and raw cashew nuts. Let boil for 8-10 minutes or until tomatoes are soft. Let cool. Blend the tomatoes, spices and cashews to a smooth paste.

Pro Tip :- Reserve the liquid left behind after boiling to thin out the sauce, tastes way better than just plain water.

• Cut up paneer in 2 inch chunks in any shape you like.Heat 1 tablespoon butter in a small non stick pan or any pan you are comfortable cooking with) and pan fry the paneer until golden on both sides.

Note :- Pan frying the paneer is optional, however I highly recommend if you are making this dish for special occasions.

• Separately, grate paneer to add to sauce. See quantity needed in the recipe card.
• Finely chop the onions. I dont recommend grinding the onions.

Make the Lababdar Sauce

• In a cooking pot or shallow pan, melt the butter on medium heat. Temper with bay leaf and cinnamon.

Pro Tip:- If you are using canned tomatoes, add green cardamom & cloves right now with other whole spices.

• Add the chopped onions next and stir using a spoon to cook lightly for 5-6 minutes till translucent.

Pro Tip:- Be careful to not let the onions brown else they will add a strong onion flavor to your sauce plus change the color. The sauce should taste tomato(ey).

• Next add the powdered spices and stir with the onions on low flame for about a minute taking care not to burn them.
• Pour in the cashew tomato puree, add salt and mix everything. Let the sauce warm through and cook on low flame. You will see small bubbles on sides and in the center of the pot. Cashew will make the sauce slightly sticky so make sure to stir often.
• After 5 -7 minutes or so, once the sauce gets to a deep orange color, add ⅓ to ½ cup (max) of the reserved liquid to make the sauce a little thin. Don't add too much water, such creamy sauces taste better when they are thickish.
• Let the sauce cook a little till its heated through and you achie the desired consistency. Check the salt and adjust if needed at this point.
• Then add the sugar, kasuri methi and garam masala. Mix everything.
• Add the pan fried paneer next along with any butter in the pan. Also add the grated paneer and heavy cream.
• Let simmer on low heat for 2-4 minutes more. Dont let boil.
• Serve with indian flatbreads like garlic naan, methi naan or with steamed rice.    

Recipe Tips

• Use mildly sweet tomatoes. Sour tomatoes will make the sauce quite tangy.
• If you do not have kasuri methi, simply skip it. Kasuri methi is a finishing herb used often in indian cooking.There is no substitute for it. After adding kasuri methi, don't cook for too long else the sauce will get bitter.
• Don't shred the paneer too fine, we want coarsely grated or crumbled paneer for texture in the sauce.
• You can use a combination of almonds and cashews. However do not completely skip cashews, they add a lovely creaminess to the sauce.
• You can smoke the curry once finished for a true dhaba taste. I have explained the dhungar method here in this post.

For Vegan Lababdar Sauce

Here are a few substitutions for a vegan version of this dish.

• Use extra firm tofu chunks and grated/crumbled tofu instead of paneer. You can use seitan or tempeh too
• Use any plant based butter to make the sauce. Avoid oil to make this dish (we need a buttery flavor in there). Avoid coconut flavored butters. Such creamy north indian dishes somehow dont taste good with a coconut taste.
• Use extra cashews. I would say about 18-20.
• Finish the dish with a dab of plant butter. Avoid adding plant based yogurt etc because that might make the sauce too tangy. If the yogurt you use isn't too tangy, then maybe you can add a scant tablespoon.