Cashew butter chicken is a healthy recipe inspired by Indian butter chicken, but without the extra calories. The succulent pieces of chicken are spiced to perfection and cooked in a rich and vibrant tomato sauce. This is a quick and easy recipe that’s perfect for a weeknight!
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Butter Chicken is one of the most popular Instant Pot Indian recipes out there. I wanted to make a healthy recipe that has as much flavor, but is healthier.
Before you scroll down to look at the recipe ingredients, let me just tell you not to be put off by the number of ingredients. Once you get all the spices together, this recipe is so easy!
The bulk of the work is gathering up the spices, cutting the chicken into bite-size pieces, and sauteing the onions. And some of that work can be done ahead of time.
This healthy butter chicken recipe with cashews is so good! You can either serve it with warm, toasty naan that’s perfect for scooping up the chicken pieces or with basmati rice which absorbs the rich flavors of the sauce.
I love the combination of chicken curry served with potatoes. The last time I made this recipe I served it with a South Indian Stir-fried Potato recipe.
➡ Looking for delicious but easy Indian recipes? Try my chicken 65 air fryer recipe, Instant Pot lamb biryani, tikka masala, Kerala chicken curry, or Kerala fish curry!
Ingredients and Tips
🧂 Ingredients You’ll Need for Cashew Butter Chicken Recipe
💡 Recipe and Ingredient Tips
🕐 Make Ahead: This curry develops deeper flavors overnight. For the best taste, consider making it a day in advance – this is typical of many Indian curries!
🧈 Fat Options: While ghee adds authentic flavor (try my homemade Instant Pot version!), you can substitute with butter or vegetable oil.
🌶️ Chili Options: For consistent heat, opt for serrano peppers over jalapeños, which can vary in spiciness. Start with ¼ pepper if you prefer milder flavors.
🌿 Fenugreek: This herb (kasuri methi in Hindi) adds a unique flavor. The dried leaves are convenient and will last a long time – you can find them at Indian grocers or online. Don’t use fenugreek seeds – totally different flavor! Omit if unavailable.
🔴 Kashmiri Chili: This special Indian chili powder provides bright red color with moderate heat. Substitute with reduced amounts of cayenne pepper if needed. Pro tip: Adjust quantity to taste or use paprika for a milder version.
🍯 Sweetener: A touch of honey balances the tomatoes’ acidity. Brown or white sugar works as an alternative.
🥛 Yogurt Tips: Use whole milk yogurt for best results. Don’t worry if it appears curdled after pressure cooking – it will smooth out after stirring and resting.
🍅 Tomato Tips: Use tomato sauce (passata in the UK) for a smooth curry.
Pro tip: Layer it on top without stirring, to prevent the burn error. I like this curry to have a bold tomato flavor. If you want to tone down the tomato flavor, consider using ¾ cup of tomato sauce.
🥜 Cashew Butter: Need a substitute for cashew butter? Make your own by blending roasted cashews with minimal water until smooth. Avoid adding too much liquid to prevent graininess. A cashew replacement in butter chicken is almond butter or coconut cream.
🫘 Gram Flour: Known as besan, this thickener adds authentic flavor. Substitute with chickpea flour or cornstarch, or omit if unavailable.
🧂 Garam Masala: Best when homemade and freshly ground.
Pro tip: For a quick substitute, mix equal parts black pepper, cardamom, cinnamon, clove, and nutmeg powders. Grind fresh for maximum aroma!
How to Make Cashew Butter Chicken
See recipe card at the bottom for more information.
⏲️ Instant Pot Method
- Turn on Saute Mode
- Saute whole spices in ghee.
- Saute onion mixture and add powdered spices.
- Saute spices and stir in chicken and broth.
- Stir in yogurt and tomato sauce.
- Pressure cook for 4 minutes.
- Do a natural pressure release (NPR).
- Thicken the curry.
- Select Saute mode. Once the inner pot has heated up, add ghee. When ghee has melted, add whole spices (cinnamon, cardamom, and cloves) and stir until fragrant, about 15 seconds.
- Add onion, ginger and garlic. Stir in green chilis and saute the onion mixture until the onions are rich golden brown. This may take 10 to 15 minutes. Press Cancel. The spices will cook in the residual heat. Stir in coriander, cumin, chili powder, turmeric, salt, fenugreek, and honey. Saute the spices with the onion mixture for about 30 seconds. *
- Stir in the chicken and broth. Scrape the bottom of the pot to make sure nothing is stuck to the bottom. This will help you prevent the burn message. Add yogurt and stir till combined.
- Add tomato sauce on top, but DON’T stir.
* If the onion starts to stick to the bottom or burn, add a teaspoon or two of broth to deglaze, and continue sauteing. Do this as often as needed until the onions are cooked properly.
- Stir in the cashew butter, chickpea flour, and garam masala. In Saute mode, cook for a minute or two until thickened and heated through, stirring frequently.
- Press Cancel and stir in chopped cilantro. Serve Instant Pot butter chicken with rice or naan.
♨️ Stovetop Method
- Heat a large saucepan or dutch oven over medium-high heat. Saute whole spices in ghee.
- Add onion, ginger, garlic, and green chilis . Saute until the onions are rich golden brown.
- Add tomato sauce and saute till they lose their raw color and the oil starts to separate.
- Add spices and saute briefly.
- Stir in the chicken and coat the chicken with the spices. Stir in the yogurt until incorporated.
- Bring to boil, lower heat, cover, and cook until chicken is done. Garnish with cilantro.
Healthy Instant Pot Butter Chicken with Cashew Butter
Equipment
Ingredients
- 2 tablespoon ghee
- 2 cinnamon sticks
- 6 cardamom pods
- 5 ground cloves
- 2 cups onion chopped
- 2 tablespoon ginger minced
- 2 tablespoon garlic minced
- 1 jalapeno pepper or serrano – (optional), slit lengthwise
- 2 tablespoon coriander powder
- 1 teaspoon cumin powder
- 1 teaspoon Kashmiri chili powder
- ½ teaspoon turmeric powder
- 1 ½ teaspoon salt or to taste!
- 2 tablespoon dried fenugreek leaves (dried methi)
- 2 teaspoon honey
- 1 ½ lb boneless skinless chicken thighs (⅔ kg) cut into 1 ½ inch pieces
- ¾ cup low sodium chicken broth
- ¾ cup yogurt
- 1 cup tomato sauce [See Note 1]
- 2 tablespoon cashew butter
- 1 Tbsp gram flour or chickpea flour
- 1 teaspoon garam masala
- ¼ cup chopped cilantro
Instructions
Instant Pot Instructions
- Select Saute and allow the Instant Pot to heat up. Once the inner pot has heated up, add ghee.
- Once the ghee has melted, add cinnamon, cardamom, and cloves and stir until fragrant, about 15 seconds.
- Stir in onion, ginger, garlic, green chilis and saute the onion mixture until onions are rich golden brown. This may take 10 to 15 minutes. Be patient and don't let the onions burn. **
- Press Cancel. The spices will cook in the residual heat.
- Stir in coriander, cumin, chili powder, turmeric, salt, fenugreek and honey. Deglaze with a small amount of broth if you find that the spices are burning.
- Stir the spices with the onion mixture for about 30 seconds.
- Stir in the chicken and broth. Scrape the bottom of the inner pot to make sure there are not brown bits stuck to the bottom.
- Add yogurt and stir till combined.
- Add tomato sauce on top but DON’T stir. This prevents sealing issues and the burn message
- Close the lid and pressure cook on High Pressure for 4 minutes.
- Allow the pressure to release naturally (NPR). This usually takes 15 minutes. Press Cancel and open the Instant Pot. [See Note 2]Read More: The Different Pressure Release Methods
- Select Saute mode and stir in the cashew butter, gram flour, and garam masala.
- Heat through until thickened, stirring frequently, about 1 or 2 minutes.
- Press Cancel and stir in chopped cilantro.
- Serve with toasted naan or basmati rice.
Stovetop Instructions
- Heat ghee over medium heat in a large saucepan or dutch oven.
- Once the ghee has melted, add cinnamon, cardamom, and cloves and stir until fragrant, about 15 seconds.
- Stir in onion, ginger, garlic, and green chilis and saute the onion mixture until onions are rich golden brown. This may take 10 to 15 minutes. Be patient, and don't let the onions burn.[See Note 2]
- Add the tomato sauce and saute until the tomatoes lose their raw color and the ghee starts to separate from the tomato. It will look like a paste.
- Add coriander, cumin, chili powder, turmeric, salt, fenugreek, and honey. Deglaze with a small amount of broth if the spices are burning. Stir for 30 seconds or until the spices are fragrant.
- Increase heat to medium-high, add chicken, and stir to coat. Fry until chicken pieces lose their pink color and start to lightly brown. Add some broth to deglaze, as needed.
- Add the yogurt in batches, stirring after each addition, to prevent curdling.
- Stir in the broth, and bring everything to a boil. Lower the heat and simmer for 15 to 20 minutes, or until the chicken is cooked through.
- Stir in cashew butter and garam masala, and heat through. [See Note 4]. Remove from heat and garnish with chopped cilantro.
Notes
- Prep time does not include steps that are already accounted for in the ingredient list, e.g. cut up chicken, chopped onion, etc.
- A cashew substitute in butter chicken is almond butter or coconut cream. There will be a change in flavor, though.
- [Note 1]: American tomato sauce (called tomato passata in the UK), not tomato ketchup. Use ¾ cup if you prefer to have a less bold tomato flavor. The flavors do mellow if you wait a day.
- [Note 2]: If the onion sticks to the bottom or burns, add a tablespoon of broth to deglaze and continue sauteing. Do this as often as needed until the onions are cooked properly.
- [Note 3]: If you’re short on time, it’s perfectly okay to do a 10 or 15-minute natural release i.e. wait for 10 or 15 minutes and release pressure.
- [Note 4]: The besan (chickpea flour) is used to thicken the Instant Pot version of the curry. You may omit it for the stovetop version.
Nutrition
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I am not a certified nutritionist. I provide my best estimate of nutritional information merely as a courtesy to my readers. If you depend on nutritional information for dietary or health reasons, I suggest using your favorite online nutrition calculator to confirm the nutritional value of this recipe based on the actual ingredients that you use.
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Ruchi says
This recipe looks great! Do you know how to modify this with paneer or tofu?
Paint the Kitchen Red says
Ruchi, I haven’t made this with either but in other recipes, I pressure cook for 1 to 2 minutes on high pressure.
Monica says
I have cooked this recipe no less than 20 times. My family loves it. I love it because it is so quick to prepare! I even use this base for a non meat option. Garbanzo beans are my fav. Thanks Neena!
Paint the Kitchen Red says
Thank you so much for letting me know, Monica. I am so happy you love the recipe and it brings your family joy!
Ruben says
Hi there, great recipe! I’m ready to double it up! But my question is do I need to add more time?
Suuuuper yummy and the smell in the house is heavenly.
Ruben says
I’m curious because 10 minutes was the shortest amount of time I’ve seen on any other recipe for boneless skinless chicken. And one more thing. I noticed your Chicken Tikka Masala recipe adds the fenugreek leaves after the pressure cook part, but this recipe adds it before. Is there a preference?
Paint the Kitchen Red says
Hey Ruben, 10 minutes is too long for cut-up boneless chicken thighs. For whole boneless chicken 7 to 8 minutes works. If you were using bone-in whole pieces, 10 minutes would be good. Re: the fenugreek, I didn’t even realize I did it differently for those recipes! Both will work fine, but I would say since it’s a dried herb, pressure cooking might dull the flavors a bit so you’re better off adding it in at the end and heating through.
Paint the Kitchen Red says
Hi Ruben, thanks for commenting! You would keep the cook time the same. Glad you liked it!
Lillian says
Looks amazing, Neena!!! I’m looking forward to trying it!
I’m wondering if you have any recommended substitute for cashew butter, as I have a son that is severely allergic to tree nuts or if I can just leave it out completely?
Thank you so much for your time!!
Paint the Kitchen Red says
Hi Lillian, I hope you enjoy the recipe. You can leave it out or you could add some coconut milk (full fat) or cream.
Reva says
Excellent recipe as always, Nina–we loved it and failproof dish. Going to be one of my repeats along with your Penang curry. Keep them coming
Paint the Kitchen Red says
Reva – thank you very much for your comment and rating. I very much appreciate your support!
Reva says
Nina, is chcken broth needed or can just use water? do let me know.
Thanks
Paint the Kitchen Red says
Reva, yes you can definitely do water. Hope you like it – I love this recipe. It’s got a fairly strong tomato flavor, but it mellows the next day. You could start out with less if you’re so inclined.