Butter Chicken Recipe (Authentic Family Recipe)

Butter chicken is probably the dish that got most Australians into Indian food. That creamy tomato sauce, the tender chicken, the warm spices, it's hard not to love. And it's not as hard to make at home as you might think.

This butter chicken recipe is our family recipe. The same one we've been cooking for decades.

Ingredients

For the chicken marinade

• 500g boneless, skinless chicken thigh or breast
• ½ cup yoghurt
• 1 tbsp ginger paste
• 1 tbsp garlic paste
• ½ tbsp True Indian Spices Butter Chicken Mix
• 1 tbsp Kashmiri chilli powder
• ½ tsp turmeric powder
• 1 tsp salt
  

For the base gravy

• 3 tbsp ghee or butter
• 1 large onion, finely chopped
• ½ tsp Kashmiri chilli powder
• 1 tbsp True Indian Spices Butter Chicken Mix
• 1 can diced tomatoes, pureed (or 425g fresh pureed tomatoes)
• ½ cup heavy cream
• 2 tbsp honey or sugar
• 1 tbsp kasuri methi (dried fenugreek leaves)
• 1 tbsp ghee or butter (for finishing)
• ¼ cup fresh coriander, to serve
  

How to make butter chicken

1. Marinate the chicken. Mix the yoghurt, ginger paste, garlic paste, Butter Chicken Mix, Kashmiri chilli powder, turmeric, and salt in a large bowl. Add the chicken and coat it well. Cover and put it in the fridge for at least 1 hour, overnight if you can.

2. Heat the oven. Set your oven to 200°C (400°F). Or heat a grill or pan on medium-high if you prefer.

3. Cook the chicken. Put the chicken on a lined baking tray. Bake for 12–15 minutes until cooked through and a little charred at the edges. The char is normal, it adds flavour. Set the chicken aside.

4. Cook the onion. Heat the ghee or butter in a large pan on medium heat. Add the onion and cook for 8–10 minutes until golden brown. 

5. Add the spices. Stir in the Kashmiri chilli powder and Butter Chicken Mix. Cook for 30 seconds. It will smell amazing.

6. Add the tomatoes. Pour in the pureed tomatoes. Cook for 10–12 minutes, stirring now and then. Wait until the sauce thickens and you can see oil separating around the edges. That means it's done.

7. Add the chicken. Add the cooked chicken to the sauce. Stir and simmer for 5 minutes.

8. Add the cream. Turn the heat down low. Add the cream, honey or sugar, and kasuri methi (crush it in your palms first). Simmer for 8–10 minutes until the sauce is thick and creamy.

9. Finish with ghee. Stir in 1 tbsp of ghee or butter. This gives the sauce a smooth, glossy finish.

10. Serve. Top with fresh coriander and serve hot. Great with basmati rice, garlic naan, or roti. For a restaurant look, drizzle a little extra cream on top before serving.

Tips for the best butter chicken

1. Kashmiri chilli powder gives butter chicken its deep red colour. It's not very hot, it's more about colour and flavour. If you only have regular chilli powder, use a third of the amount.
2. If you don't have an oven, just cook the chicken in a pan on high heat instead. Do it in batches so it browns properly.
3. Watch for the oil separation in step 6, you'll cook the tomatoes for 10–12 minutes. You'll know they're ready when the oil starts to separate and pool around the edges of the sauce. 
4. Rub the kasuri methi in your hands before you add it. Just crush it between your palms as you drop it in. It releases the oils and gives you that smell you get at a good Indian restaurant.
5. Either honey or sugar works. It balances the tomatoes. Start with one tablespoon, taste, then add more if you want it a little sweeter.

About the author

Written by the team at True Indian Spices, Australia's trusted place to buy authentic Indian spices and traditional spice mixes. Our Butter Chicken Mix uses the same spices we cook with at home.

Last Updated: June 2026