Mushroom Butter Masala is a rich, creamy Indian curry made with mushrooms simmered in a buttery onion, tomato, cashew gravy. It’s full of flavor, mildly spiced, and pairs perfectly with naan or Pulao.
If you’ve ever loved Paneer Butter Masala but wanted something lighter or different, this Mushroom Butter Masala will be your next favorite. The mushrooms soak up all those buttery, tomato-based flavours beautifully. It tastes just like the one you get at restaurants but made right in your kitchen with simple pantry ingredients.
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Mushroom Butter Masala is one of those recipes that can instantly make home meals feel special. The best part is that it’s not complicated—you just need patience to cook the masala right. Once you get that step done, the rest of the recipe is smooth sailing.
This recipe is easy, fuss-free, and perfect for anyone who loves creamy gravies but doesn’t want to spend hours cooking. Whether you’re a busy parent, a beginner cook, or someone who enjoys hosting dinner parties, Mushroom Butter Masala is sure to win hearts. If you love mushrooms, you have to try this Mushroom Pulao and
South Indian Style Mushroom Biryani.
Why You Will Love This Mushroom Butter Masala
Mushroom Butter Masala Gravy is rich, creamy, and flavorful – every bite is bursting with the perfect balance of spice, buttery aroma, and smooth texture.
You can make it with regular ingredients available in any Indian kitchen—no fancy or hard-to-find items.
It pairs wonderfully with all Indian breads like naan, roti, or paratha, and also tastes great with Ghee Rice or Pulao.
It is a crowd-pleaser dish – perfect for parties, weekend meals, or festive occasions.
How to make Mushroom Butter Masala
Heat a tablespoon of butter and a little oil in a pan. Add chopped onions and sauté till they turn golden. Add ginger garlic paste and cook for a minute till the raw smell disappears. Then add chopped tomatoes and cashews. Sauté for 5–6 minutes until the tomatoes soften.
Once the mixture cools slightly, transfer it to a blender and make a smooth paste. You can add a few tablespoons of water if needed. This is the creamy base for our curry.
In the same pan, add the butter and a teaspoon of oil. Add the sliced mushrooms and sauté till they release moisture and get slightly golden on the edges. This step is key for bringing out mushroom flavor. Remove and keep aside.
In the same pan, pour the onion-tomato-cashew paste. Add all the spice powders—red chilli powder, Kashmiri chilli powder, turmeric powder, coriander powder, garam masala powder, and salt. Cook this masala on a low flame. Stir occasionally until you see the oil separating from the sides.
Add the sautéed mushrooms into the thick gravy. Stir gently. Pour in the cream and sugar. Cook for a few minutes on low flame until everything blends beautifully.
Crush some kasuri methi between your palms and add it to the gravy. This brings a beautiful aroma. Taste and adjust seasoning—add more salt, cream, or sugar if needed.
Turn off the flame. Garnish with chopped coriander leaves and a drizzle of cream. Your mushroom butter masala is ready to serve.
Serving Suggestions
Pair it with freshly made naan, tandoori roti, or butter garlic naan. The buttery, soft breads soak up the creamy curry beautifully.
It also goes very well with jeera rice, ghee rice, or plain basmati rice for a comforting lunch or dinner.
If serving at a party, pair Mushroom Butter Masala with Paneer Tikka, Vegetable Pulao, and Dal Tadka. It complements all North Indian spreads wonderfully.
Tips to make the best Mushroom Butter Masala
Always use fresh mushrooms. Avoid soggy or slimy ones—they spoil the texture.
Sauté mushrooms on high flame initially so they don’t get rubbery. This helps in retaining the flavour.
Use butter generously (that’s what makes it “butter masala”), but you can adjust it to your liking if you want a lighter version.
For vegan versions, use cashew cream or coconut milk. They bring the same creamy texture with a slightly different flavor.
Frequently asked questions
Yes! Replace butter with vegan butter or oil, and use coconut milk or cashew cream instead of dairy cream. The result will be just as delicious.
Mushroom Butter Masala thickens as it cools. Simply add a few tablespoons of warm water or milk and stir to adjust consistency.
Almonds work well. Just soak and peel them before blending. For nut-free versions, blend a few tablespoons of melon seeds instead.
The base gravy is quite similar, but paneer makes the dish richer and denser, while mushrooms give it a more earthy, lighter feel.
Yes, you can use mixed vegetables, baby corn, paneer, tofu, or even green peas. The same gravy works as a base for multiple dishes.
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Recipe Card
Mushroom Butter Masala
Ingredients
- 2 tablespoon Butter
- 1 tablespoon Oil
- 200 grams Mushroom sliced
- 2 medium Onions roughly chopped
- 2 medium Tomatoes roughly chopped
- 8 Cashews
- 2 teaspoon Ginger Garlic Paste
- 1 teaspoon Red Chilli Powder
- ½ teaspoon Kashmiri Red Chilli Powder
- 1 teaspoon Coriander Powder
- 1 teaspoon Garam Masala Powder
- ½ teaspoon Turmeric Powder
- Salt to taste
- ½ teaspoon Sugar
- ½ cup Cream Or Milk
- 1 teaspoon Kasuri Methi crushed
- 1 tablespoon Coriander Leaves finely chopped
Instructions
- Heat a tablespoon of butter and a half tablespoon oil in a pan. Add chopped onions and sauté till they turn golden.
- Add ginger garlic paste and cook for a minute till the raw smell disappears. Then add chopped tomatoes and cashews. Sauté for 5–6 minutes until the tomatoes soften.
- Once the mixture cools slightly, transfer it to a blender and make a smooth paste. You can add a few tablespoons of water if needed. This is the creamy base for our curry.
- In the same pan, add the remaining butter and oil. Add the sliced mushrooms and sauté till they release moisture and get slightly golden on the edges. Remove and keep aside.
- In the same pan, pour the onion-tomato-cashew paste. Add all the spice powders and salt.
- Cook this masala on a low flame. Stir occasionally until you see the oil separating from the sides.
- Add the sautéed mushrooms into the thick gravy. Stir gently. Pour in the cream (or milk) and sugar. Cook for a few minutes on low flame until everything blends well.
- Crush some kasuri methi between your palms and add it to the gravy. This brings a beautiful aroma. Taste and adjust seasoning—add more salt, cream, or sugar if needed.
- Turn off the flame. Garnish with chopped coriander and a drizzle of cream. Your mushroom butter masala is ready to serve!