Delicious Butter Tofu: Vegan Butter Chicken Recipe

Name: Vegan Butter Tofu Recipe
Prep time: 30 min
Cook time: 35 min
Total time: 1 h 5 min
Yield: 5
Cuisine: Indian
Ingredients: 2 x 14-ounce blocks firm or extra firm tofu; 2 teaspoons garam masala; 1-2 tablespoons coconut oil, melted; 1/2 teaspoon salt; 1/2 cup shallot, chopped small; 2 tablespoons garlic, minced; 1 tablespoon ginger, grated or minced; 1 serrano chili, chopped (optional); 1 teaspoon garam masala; 1 teaspoon ground coriander; 1 teaspoon ground cumin; 1/2 teaspoon ground turmeric; 1 teaspoon paprika (or for spicier- 1/2 teaspoon Kashmiri chili powder or 1/4 teaspoon cayenne); 1 teaspoon salt (more to taste); 1 tablespoon tomato paste; 1/2 cup vegetable broth (or chicken stock); 3/4 cup crushed tomatoes, canned or use fresh chopped tomatoes ( and juices); 1 teaspoon dried fenugreek leaves (optional, but elevates); 14-ounce can coconut milk; fresh lemon juice to taste

Cozy and comforting, this delicious Butter Tofu (aka Vegan Butter Chicken) is aromatically spiced with a luscious tomato-coconut sauce. Plant-based and gluten-free.

bowl of butter tofu on basmati rice and baby spinach with naan, lemon, sliced serrano chili, and cilantro.

This butter tofu is comforting, cozy, and warming. A healthy, plant-based Indian dinner ready in about an hour. Serve it up with basmati rice, spinach, naan, or a baked sweet potato.

Every so often, I feel a deep yearning for India. I miss the colorful, beautiful chaos-the sounds, the scents, and the feeling of love and devotion that seems to permeate the air. There's something about that place I can't quite explain, but it calls to me again and again. When the longing sets in, I find comfort in sorting through my Indian spices and creating an Indian meal transporing myself there.

Why You’ll Love This Butter Tofu

Tonia‘s recipe for Butter Tofu has amazing flavor and features a unique way to prepare tofu- it is torn into pieces for an elevated texture, then baked until slightly crispy. While it bakes, make the fragrant Indian “butter” sauce, then simmer, combine, and serve. It’s a lovely meal ready in about an hour.

Ingredients

Tofu: Use firm or extra-firm tofu for optimal texture.
Coconut oil: Used as a plant-based substitute for butter to achieve a rich, creamy coating.
Shallot, garlic, and ginger: For savory, deep, aromatic flavor.
Serrano chili: Optional, but adds a nice bit of extra heat. Sub other fresh chilies.
Garam masala: It is easy to make your own! Try our homemade garam masala recipe.
Other spices: Coriander, cumin, turmeric, paprika, and salt. If you’d like a spicier butter tofu, substitute the paprika with Kashmiri chili powder and cayenne.
Tomato paste and crushed tomatoes: Help thicken the sauce and create a savory tomato base. Use canned tomatoes or chop fresh tomatoes.
Vegetable broth: If not vegan, you can use chicken stock. Try making your own veggie broth or chicken broth for even deeper flavor.
Dried fenugreek leaves: Use the leaves, not the seeds, adds an earthy, herby flavor. Also called Kasuri methi. Available at Asian markets or online.
Coconut milk: Gives the sauce a deliciously rich and creamy texture!
Lemon juice: Fresh lemon juice elevates the overall flavor, making it slightly tangy and vibrant!

Recipe Variations

For more heat: Increase the spice level with more fresh serrano chiles. And instead of paprika, use Kashmiri chili powder and/or cayenne pepper.
Coconut milk alternatives: Cashew cream, coconut or soy yogurt, or heavy cream can be used instead of coconut milk.
Air-fryer tofu: Prep and season the tofu as instructed, then place it in the air fryer at 375°F for about 15 minutes.
Stovetop Tofu: Slice and tear the tofu, then toss it with the spices and salt. Sear it in a hot oiled pan until crisp and golden on all sides. Let it develop an initial crust without disturbing it, then flip the pieces.
Looking for Chicken? Here is our Authentic Butter Chicken (Murgh Makhani).

How to Make Butter Tofu

1. Prep the tofu. Preheat the oven to 425F. Drain the tofu and gently pat it dry. Slice the block of tofu into 1/2-inch slabs and then tear them into bite-sized chunks. Place the tofu in a bowl.

2. Season and bake the tofu. If you haven’t already, melt the coconut oil in a small saucepan. Drizzle it over the tofu and add the salt and garam masala. Toss to coat, then place the tofu on a parchment-lined baking sheet. Bake for 25 minutes.

glass mixing bowl with torn tofu tossed with spices.

baked garam masala tofu on parchment-lined baking sheet.

3. Start the Sauce. Sauté the aromatics and bloom the spices. Add coconut oil (or ghee if not vegan) to a large heavy-bottom pot, large cast iron skillet, or Dutch oven and turn to medium-high heat. Once warm, sauté shallot, garlic, ginger, and serrano chili over medium heat, stirring for 2 minutes or until fragrant and golden. Add spices (garam masala, coriander, cumin, turmeric, paprika) and salt. Stir for another 2 minutes to bloom the flavor.

wood spatula stirring aromatics in spices in dutch oven to make the base for butter tofu sauce.

dutch oven with butter tofu, featuring baked tofu in pot of curry sauce.

4. Simmer. To the pot, add tomato paste, broth, crushed tomatoes, fenugreek leaves, and coconut milk. Let simmer for 5-10 minutes. Tip: If you prefer an extra smooth sauce, use an immersion blender or transfer to a high-speed blender to create a silky texture. Stir in the tofu.

5. Taste and adjust. Taste the sauce and add more salt, spice, or a squeeze of lemon juice depending on your preference.

6. Serve. Serve over basmati rice or baby spinach with naan or roti and top with fresh cilantro and a lemon wedge.

bowl of butter tofu on bed of rice and baby spinach with naan and lemon wedge.

How to Make Air Fryer Tofu

Prep and season the tofu as instructed, then place it in the air fryer at 375°F for about 15 minutes.

How to Make Fried Tofu on the Stovetop

Slice and tear the tofu, then toss it with the spices and salt. Sear it in a hot oiled pan until crisp and golden on all sides. Let it develop an initial crust without disturbing it before flipping the pieces.

Chef’s Tips

Tear the tofu, don’t cube it. Tearing the tofu creates craggy edges that bake up beautifully golden and soak up more of the sauce.
Bake the tofu first. Baking the tofu before adding it to the sauce concentrates flavor and adds a lightly crisp exterior that helps it hold its shape - so it doesn’t get lost in the creamy sauce!
Bloom the spices. Take your time when sautéing the spices in oil. This step releases their full aroma and warmth. Keep the heat moderate so they toast, not burn.
Use full-fat coconut milk for richness. For that signature butter chicken-style silkiness, full-fat coconut milk is essential. Light versions won’t deliver the same luxurious mouthfeel.
Fenugreek is optional, but magical! If you have dried fenugreek leaves (kasuri methi), don’t skip them. Crushed between your palms, they add an unmistakable earthy depth that really elevates.
Taste and adjust at the end. A squeeze of fresh lemon juice right before serving brightens the sauce. Taste and adjust salt, spice, and acidity - this is where the magic happens!

Serving Suggestions

Serve over basmati rice, Indian lemon rice, or cauliflower rice
For a low-carb version, serve over a bed of baby spinach
Serve with naan or roti
Serve with a side salad like Indian spinach salad or Indian carrot salad

Storage

Storage: Like many curries, Butter Tofu tastes even better the next day as the flavors meld. Store leftovers in an airtight container in the refrigerator for 3-4 days.

Freezing: The sauce freezes beautifully, but you may or may not want to freeze it with the tofu. Some people like the porous texture of frozen tofu - and it holds onto the sauce nicely! If you don’t care for the texture of frozen tofu, simply bake the tofu fresh, and thaw and reheat the sauce.

Reheating: Reheat gently on the stovetop, adding a splash of broth if needed.