Go Back
Print

Coconut Milk Butter Chicken Sauce (using Masala Starter Paste)

This is my updated GO TO Butter Chicken Sauce recipe in 2026
Course sauce
Cuisine Indian

Ingredients

  • 1 cup butter, divided
  • 1 onion minced
  • 1 tbsp minced garlic (3-4 cloves)
  • 1 15 oz can tomato sauce
  • 3 cups coconut milk
  • 1/4 cup Masala Starter Paste (search recipe on this site)

Instructions

caramelize onions / garlic

  • Melt 2 tablespoons butter in a skillet over medium-low heat. Stir in the onion and garlic. Cook slowly until they caramelize to a golden dark brown (about 15 minutes). DO NOT do this over high heat, or your aromatics will burn and become woefully bitter. Low and slow here. Set aside for later.

Make the sauce now

  • In a larger pot (I use my 5 qt Dutch oven) Over med-high heat, melt the remaining butter and add the 1/4 cup Masala Paste and toast until very aromatic (1-2 minutes). Add in: tomato sauce and coconut milk. Bring to a simmer.
  • Reduce heat to med-low, cover and simmer (stirring occasionally) for 30 minutes.
  • Stir in the caramelized onions/garlic.

Use as a sauce for recipe or add in cooked proteins at this point. I serve over rice with homemade naan

    *Best with the chicken from the recipe "Butter Chicken Marinate" (found on this site)