Gather all the ingredients. Finely chop the onion and tomato. Crush the ginger, garlic, and green chili. Heat butter in a pan and cook the chopped onion until it turns translucent.

Add the crushed ginger, garlic, and green chili. Add the chopped tomato, salt, red chili powder, turmeric, and coriander powder. Mix well and cook until the oil separates.

In a bowl, mix the yogurt and cream with salt, red chili powder, and coriander powder to taste. Add this mixture to the onion-tomato mixture and mix well. Keep the heat low and cook until the oil separates again. Grate the paneer and add it along with garam masala. Mix well.

Cook for 1 minute, then turn off the heat. Transfer to a serving dish. Garnish with a little grated paneer, fresh cilantro, tomato, and butter.

Serve this delicious and flavorful Paneer Bhurji with naan or chapati.