This Dairy Free Butter Chicken with Coconut Milk is aromatic, flavorful, and creamy. With juicy chicken thighs, Indian spices, and a silky coconut milk-based sauce, this fragrant recipe is freezer-friendly – trust us, your future self will thank you.

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As a teenager, butter chicken was one of the first meals I cooked for my family. I didn't make the sauce from scratch, I used a jarred version, and would serve it with mashed potatoes (you have to try our Red Skin Mashed Potatoes) and asparagus.
My family loved it and I loved it. I could tell because they requested it often and there were never any leftovers. It became a pantry recipe (easy to stock up on jars) and has always been one of my favorite comfort food recipes. Even today, it's the dish I order at Indian restaurants, and this dairy-free recipe is one we make on repeat for our family.
Why You'll Love This Recipe
- It's incredibly flavorful: with spices like garam masala, cumin, coriander, and chili powder and the addition of coconut milk, this dairy free butter chicken recipe is packed with aromatics, flavor, and depth – seriously, the sauce is so good you could drink it (though we don't recommend it).
- It's a crowd-pleaser: an adult and kid-friendly recipe, this butter chicken is beloved by everyone, and is mildly spiced, making it a great dish to share with a crowd. Serve it on rice or mashed potatoes, or with naan or roti.
- It's freezer-friendly: the best part of this recipe (aside from the flavor) is making a big batch of the entire dish or just the sauce to freeze and enjoy later. Since the recipe requires a bit of time, doubling the recipe helps for future meals and enjoying it at another time when the craving hits.
If you like the flavors of this Dairy Free Butter Chicken with Coconut Milk then you'll love our Spicy Curry Fried Chicken, Hot Honey Chicken Tenders, Spicy Curry Beef Pot Pie, Kale and Sweet Potato Stew with Cashew Coconut Cream, or Samosa Salad.
Ingredient List
- Onion: Yellow onion is preferred, but white or red onions also work. This is the base for the seasoning, along with garlic, ginger, and chili peppers, that gets used in the marinade and butter chicken sauce.
- Garlic: Fresh garlic is best.
- Ginger: Fresh ginger. Remove the peel if not using organic ginger.
- Chili pepper: Green chili peppers are often used in Indian cooking. We also use Scotch Bonnets which we always have on hand at home.
- Chicken: chicken thighs boneless, skinless - cubed
- Yogurt: coconut yogurt if you are dairy free, otherwise Greek yogurt, skyr, or Balkan yogurt are best.
- Chili powder: For extra heat. This can be omitted if cooking for kids or less spice is preferred.
- Garam Masala: One of the main flavors in our butter chicken. It can be found in most large grocery stores.
- Cumin: Use ground cumin, or Geera, which is toasted cumin, if available.
- Coriander: Ground coriander provides a floral note to the dish.
- Olive oil: Used as our cooking oil, coconut oil can also be used if making dairy-free butter chicken. Ghee can be used as a traditional cooking fat.
- Tomato paste: This gets toasted for depth of flavor and thickens the sauce.
- Ground tomatoes: Canned tomatoes, or passata. Avoid any tomatoes that have herbs or spices added to them.
- Coconut milk: use full-fat or premium coconut milk, adds creaminess to the dish and a slightly sweet note.
- Honey: Balances the flavors and mellows out the heat. Granulated or brown sugar also works.
See the recipe card for full information on ingredients and quantities.
Recipe Variations and Modifications
Make it with dairy: Use Greek, Balkan, or skyr yogurt in the marinade instead of coconut yogurt, and use ghee instead of oil for cooking.
Make it vegetarian: Use medium or firm tofu, beans, or veggies like mushrooms or cauliflower instead of chicken in the recipe.
Make it vegan: Use medium or firm tofu, beans, or veggies like mushrooms or cauliflower instead of chicken in the recipe, and replace the honey with sugar.
Recipe Steps: How to Make Dairy Free Butter Chicken with Coconut Milk
1. Blend the seasoning paste.
Place onion, garlic, ginger, chilis, and 2-3 tablespoons of water in a blender container and blend until smooth.
2. Prepare the butter chicken marinade.
Add yogurt, 2 tablespoons of the seasoning paste from step 1, garam masala, chili powder, cumin, and coriander to a medium mixing bowl. Whisk to combine.
3. Marinate the chicken.
Toss the chicken in the marinade until coated and set aside to marinate while cooking the butter chicken sauce.
4. Fry the seasoning.
Heat the oil in a large pot over medium-high. Once the oil begins to smoke, pour in the remaining seasoning paste from step 1, and cook for 2-3 minutes, stirring often, until lightly browned.
5. Toast the spices.
Reduce the heat to medium. Sprinkle in the garam masala, cumin, chili powder, and coriander. Cook for 5 minutes, while stirring often, until deep in color, then stir in 3 tablespoons of tomato paste, cooking another 3 minutes, stirring frequently.
Chef's Tip: If the spices stick to the pan, add a splash of water to prevent them from burning.
6. Simmer the tomatoes.
Pour in the pureed tomatoes and honey, then season with salt and pepper. Bring the sauce to a boil, then lower the heat to simmer, cover, and cook for 20 minutes.
7. Finish the butter chicken sauce.
Uncover the pot and stir in the coconut milk until fully combined, then bring to a simmer.
8. Cook the chicken.
Meanwhile, preheat the grill over medium-high heat. Grill the chicken for 3-4 minutes per side, until they have grill marks, are caramelized, and cooked through. Allow the chicken to rest for 5 minutes.
9. Finish and serve.
Roughly chop the chicken and stir into the butter chicken sauce. Garnish with cilantro and serve with naan, on rice, or mashed potatoes.
Chef's Tips
Cooking variations: If you don't have a grill available, cook the chicken in the oven on a baking sheet, at 425°F for 15-20 minutes.
Prepare the spice mixes: To prevent burning, prepare the spice mix for the butter chicken sauce by pre-mixing the spices before cooking.
Building flavor: Although it is not required, the chicken will build even more flavor if marinated for several hours or overnight.
Storage and Freezing
Store leftover butter chicken and sauce in a container for up to 5 days in the fridge. We often make large batches of butter chicken and freeze the leftovers in an airtight, freezer-safe container for up to 3 months.
Recipe FAQs
Butter chicken, also known as Murgh Makhani, gets its name from the generous use of butter (makhan in Hindi) in its creamy tomato-based sauce. It gives the dish its rich and indulgent flavor.
Butter chicken is traditionally served with naan, basmati rice, roti, paratha, or papadum to balance its rich and creamy flavors. We also like to serve ours over mashed potatoes.
Butter chicken is generally mildly spiced, with a rich and creamy sauce that balances the heat from the spices. It is less spicy compared to other Indian dishes.
Butter chicken and chicken tikka masala are both creamy tomato-based Indian dishes. Butter chicken is milder and richer with more cream, while chicken tikka masala is spicier and more tangy, with a more pronounced tomato flavor.
If you made this Dairy Free Butter Chicken with Coconut Milk recipe or any other recipe on our website, please leave a ⭐️ star rating and let us know what you loved about it in the 📝 comments below. Thanks for cooking with us!
Recipe Card
Dairy Free Butter Chicken with Coconut Milk
Ingredients
Seasoning Paste
- 1 yellow onion chopped
- 5 cloves garlic chopped
- 3 inch knob of ginger chopped
- 2 chili peppers chopped
Chicken Marinade
- 2 lbs chicken thighs boneless, skinless
- ¼ cup coconut yogurt
- 2 tablespoon seasoning paste from above
- 2 teaspoon garam masala
- 2 teaspoon ground cumin
- 1 teaspoon chili powder
- 1 teaspoon ground coriander
Butter Chicken Sauce
- 1 tablespoon garam masala
- 1 tablespoon ground cumin
- 2 teaspoon ground coriander
- ½ tablespoon chili powder
- ¼ cup olive oil or coconut oil
- 3 tablespoon tomato paste
- 1 can ground tomatoes (28oz)
- 1 can coconut milk (14oz)
- 2 tablespoon honey or brown sugar
- salt and pepper
Instructions
- Place onion, garlic, ginger, chilis, and 2-3 tablespoons of water in a blender container and blend until smooth.
- In a medium mixing bowl, Add yogurt, 2 tablespoons of the seasoning paste from step 1, garam masala, chili powder, cumin, and coriander to a medium mixing bowl. Whisk to combine. Toss the chicken in the marinade until coated and set aside to marinate while cooking the butter chicken sauce.
- Heat the oil in a large pot over medium-high. Once the oil begins to smoke, pour in the remaining seasoning paste from step 1, and cook for 2-3 minutes, stirring often, until lightly browned.
- Reduce the heat to medium. Sprinkle in the garam masala, cumin, chili powder, and coriander. Cook for 5 minutes, while stirring often, until deep in color, then stir in 3 tablespoons of tomato paste, cooking another 3 minutes, stirring frequently.Chef's Tip: If the spices stick to the pan, add a splash of water to prevent them from burning.
- Pour in the pureed tomatoes and honey, then season with salt and pepper. Bring the sauce to a boil, then lower the heat to simmer, cover, and cook for 20 minutes.
- Uncover the pot and stir in the coconut milk until fully combined, then bring to a simmer.
- Meanwhile, preheat the grill over medium-high heat. Grill the chicken for 3-4 minutes per side, until they have grill marks, are caramelized, and cooked through. Allow the chicken to rest for 5 minutes.
- Roughly chop the chicken and stir into the butter chicken sauce. Garnish with cilantro and serve with naan, on rice, or mashed potatoes.
Video
Recipe Notes
- Cooking variations: If you don't have a grill available, cook the chicken in the oven on a baking sheet, at 425°F for 15-20 minutes.
- Prepare the spice mixes: To prevent burning, prepare the spice mix for the butter chicken sauce by pre-mixing the spices before cooking.
- Building flavor: Although not required, the chicken will build even more flavor if marinated for several hours or overnight.
Modifications:
- Make it with dairy: Use Greek, Balkan, or skyr yogurt in the marinade instead of coconut yogurt, and use ghee instead of oil for cooking.
- Make it vegetarian: Use medium or firm tofu, beans, or veggies like mushrooms or cauliflower instead of chicken in the recipe.
- Make it vegan: Use medium or firm tofu, beans, or veggies like mushrooms or cauliflower instead of chicken in the recipe, and replace the honey with sugar.
Rebecca Liu says
Made this this evening. It was a hit with the family. SO GOOD!!!
Philip Lago and Mystique Mattai says
Thanks Rebecca! So happy you and your family enjoyed the recipe. We strive to make recipes that can be enjoyed by all. Thanks for commenting!
Julia says
This sounds delicious. Excited to try it. A dairy free option for the yogurt on the marinade might also be helpful 🙂
TH says
@Julia. You can swap 1:1 ratio for regular yogurt with unsweetened coconut yogurt.