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In a bowl, mix yogurt, salt, pepper, paprika, garam masala, and lemon juice. Add chicken pieces and coat well. Let it sit for at least 15–20 minutes.
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Heat a pan and cook the marinated chicken until lightly browned and cooked through. Set aside.
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In the same pan, melt butter with oil. Add chopped onion and cook until soft. Stir in garlic and ginger, then cook for a minute.
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Add crushed tomatoes, salt, chili powder, garam masala, and cumin. Let it simmer for 10–15 minutes until the sauce thickens and deepens in flavor.
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Add the cooked chicken into the sauce. Stir in cream and sugar. Let it cook on low heat for another 5–7 minutes until everything blends well.
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Rinse the rice until the water runs clear. In a pot, bring water, salt, and butter to a boil. Add rice, cover, and cook on low heat for 12–15 minutes until tender and fluffy.
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Fluff the rice gently with a fork and serve with the butter chicken on top or on the side.