Vegan Butter Chicken

Vegan Butter Chicken is one of my absolute favorite vegan Indian dishes. It’s so creamy and has the perfect mix of sweet and spicy. The rich sauce layered over perfectly spiced tofu is seriously to die for. I just adore this dish and could easily make it once a week because it’s so easy, hearty, satisfying, and tasty!

There are so many amazing vegan Indian foods to try but if you had to pick one, let it be this one!

What Is Butter Chicken?

Butter Chicken, or murgh makhani, is a very popular Indian dish. It’s commonly found in Indian restaurants in North America and is definitely a top favorite for Indian food lovers.

Traditionally, butter chicken is prepared with a gravy sauce that contains butter. Here in this recipe, we’re using good old tofu as our chicken replacement and a delicious sauce made of incredible spices, tomato, onions, garlic, and also cashews to give it that creamy, rich “buttery” flavor that you would find in a traditional Butter Chicken dish. 

Ingredients Needed

Here’s what you need to make this incredible vegan butter chicken! Nothing out of the ordinary, just your basic vegan pantry staples. We’ve also provided some substitutions where possible.

• Tofu: Opt for firm or extra firm tofu to ensure it holds its shape well when cooked. Press the tofu to remove excess moisture before cubing it, which will help it absorb the flavors of the dish.
• Ginger and Garlic: Freshly grated ginger and minced garlic provide aromatic depth to the dish. Adjust the quantities according to your taste preferences for a more pronounced or subtle flavor.
• Lemon Juice: Adds acidity to the dish, enhancing the overall flavor profile.
• Nutritional Yeast: Used for its savory, cheesy flavor, nutritional yeast contributes to the richness of the sauce. It’s a common ingredient in vegan cooking and adds depth to the dish.
• Spices: Paprika, garam masala, and turmeric combine to create the classic flavors of butter chicken.
• Yellow Onion and Tomatoes: These vegetables form the base of the sauce, providing sweetness and acidity. Dicing the tomatoes into small chunks helps them break down more easily during cooking, resulting in a smoother sauce.
• Cashews: Cashews are used to add creaminess and richness to the sauce. It’s our butter placement in this vegan butter chicken recipe. Soaking them before blending helps achieve a smooth texture if you don’t have access to a high-powered blender.
• Sugar: Sugar balances the acidity and spice level. Adjust the sugar quantity based on personal preference for sweetness.

Find the full list of ingredients and measurements in the printable recipe card below.

Substitution Options

• If you can’t eat cashews, you can use coconut cream instead! 
• If you can’t eat tofu or soy products, you can use chickpeas (like I did with this chickpea and spinach curry) or even jackfruit, and just marinate as instructed and adjust the cooking time as needed. The texture will be completely different but the taste will still be delicious! 
• If you like more spice, you can add a red chili to the pan while the onion, garlic, and ginger is sautéing.

How To Make Vegan Butter Chicken

Get ready because your kitchen is going to smell like heaven and your neighbors will be knocking at your door wondering what incredible dish you’re making. The recipe is quite simple and takes no more than 35 minutes to make!

Step 1: You begin making the dish by cutting up your tofu. You can cut it into any shape you like. I like either slicing it into strips or cutting it into little cubes but you can also tear the tofu to help it resemble chicken even more. Any shape works well as long as the pieces aren’t too big. The pieces should be roughly around an inch long.

Step 2: Prepare the marinade for the tofu. In a small bowl, simply combine all of the marinade ingredients and whisk well. Then coat the tofu with the marinade so it’s saturated on both sides. If you want to you can actually let the tofu sit and marinate for an hour or longer to really enhance the flavors. However, it’s not necessary and for the sake of convenience, I typically don’t marinate it. The spices are so flavorful and will definitely infuse into the tofu.

Tip: If you want to save time and meal prep a little bit, you can certainly prepare the tofu ahead of time and just let it sit in your fridge until you’re ready to make the dish! Then once you’re ready to cook the tofu, transfer it to a baking tray and bake it until it is crispy on the outside, but still soft and chewy on the inside. 

Step 3: Once you’ve got your tofu in the oven, now you can make the delicious butter chicken sauce. Start by sautéing onions, garlic, and fresh ginger in a large pan. I LOVE fresh ginger and it really makes a huge difference in this dish. If you don’t have fresh ginger, you can use dried ginger to taste instead. Then add the tomatoes and all of the spices and allow this to cook down. 

Step 4: You’ll need a high-speed blender (such as a Vitamix) to make the sauce. If you have a blender that’s not quite so powerful, you can still definitely make this recipe, I just suggest soaking the cashews overnight so that they are soft and easy to blend, and then just discard the soak water before blending.

Add water and the cashews to the blender and blend until it’s as smooth as can be. Then transfer the sauce from the pot into the blender. You’ll want to blend it on low speed, just for about 30 seconds. This will gently combine the mixtures to create a sauce with a lovely texture. You don’t want to blend it until it’s perfectly smooth because the sauce will lack texture and be a little thin. 

Step 5: Next, transfer the sauce back to the pan and cook it gently for about 5 minutes. This will allow it to thicken nicely and infuse the flavors even more. Add sugar, salt, and pepper to taste. If you’d like, you can use coconut sugar which is a lovely, low-glycemic sweetener that compliments this dish extremely well.

The sugar really balances out the spices and creates a delicious sweet and spicy finished product. I usually add 2 tablespoons, but you can add the sugar a little at a time until it suits your taste. Now at this time, you can add any additional spices if needed, to taste.

Step 6: By this time, the tofu should definitely be finished. Remove the baking tray with tofu from the oven and transfer the tofu to the pot. Mix together, and you have your vegan butter chicken!

What To Serve With Vegan Butter Chicken

Now you can serve this any way you like it, but I love it served over basmati rice, which is typically used in Indian dishes, along with cilantro for garnish. However, this flavorful dish pairs wonderfully with various sides:

• Rice: Basmati rice is a classic choice, but coconut rice adds a delightful tropical touch. Tip: Cook the rice while the tofu bakes in the oven. Just set it on the stove to cook, and then you can make your sauce.
• Indian Breads: Enjoy with warm naan or vegan roti for a traditional experience.
• Grains: Serve over brown rice, millet, quinoa, or your favorite grain. (Note: Brown rice takes longer to cook, so plan accordingly.)
• Veggie Sides: Tindora (ivy gourd) or creamy Toor Dal soup make excellent accompaniments.

How To Store and Reheat

Transfer any leftovers to an airtight container and refrigerate for up to 4 days. For longer storage, place the vegan butter chicken in a freezer-safe container and store it in the freezer for up to 3 months. Thaw in the refrigerator overnight before reheating.

When reheating, you can use the stovetop or microwave:

• Stovetop: Transfer butter chicken to a saucepan and reheat over medium heat, stirring occasionally to prevent sticking or burning. Add as splash of water or vegetable broth if the sauce has thickened too much.
• Microwave: Place the vegan butter chicken in a microwave-safe dish and cover it with a microwave-safe lid or damp paper towel. Reheat in intervals of 30 seconds to 1 minute, stirring in between, until heated through.