When you need a comforting, flavorful dinner that feels like a warm hug, butter chicken never disappoints. This homemade version uses coconut milk for a dairy-free twist that still delivers that signature creamy texture. It’s rich, aromatic, and comes together with pantry staples and tender chunks of chicken simmered in a luscious spiced tomato sauce.

What sets this version apart is how the coconut milk adds a silky richness and slight sweetness that balances the spices perfectly. Whether you’re trying to avoid dairy or just love the flavor of coconut, this is one of those recipes you’ll want to make again and again. Serve it over rice or with naan to soak up every drop.

Why You’ll Love This Homemade Butter Chicken With Coconut Milk

This recipe hits the perfect balance between bold flavors and cozy comfort food. The use of coconut milk instead of cream makes it both lighter and friendlier for those avoiding dairy, without sacrificing the richness you expect from butter chicken. The sauce clings to every bite of chicken, infused with warm spices like garam masala, cumin, and paprika. It also freezes beautifully, so you can double the batch and have a quick dinner ready anytime.

What Cut of Chicken Works Best?

Boneless, skinless chicken thighs are the best choice for butter chicken because they stay tender and juicy even after simmering in sauce. However, if you’re in a pinch or prefer leaner meat, chicken breast can also work—just be careful not to overcook it. Marinating the chicken briefly in a spiced yogurt or coconut milk mixture adds flavor and helps keep it tender.

Ingredients for the Homemade Butter Chicken With Coconut Milk

To make this dish rich and flavorful, each ingredient has a key role to play. Here’s what you’ll need:

Chicken thighs: These provide juicy, flavorful bites that stay tender as they simmer.
Coconut milk: The star of this dairy-free version, it creates a creamy base with subtle sweetness.
Tomato paste: Intensifies the tomato flavor without adding excess liquid.
Garlic and ginger: Freshly minced for bold, aromatic undertones.
Garam masala: A warm spice blend that gives butter chicken its distinctive flavor.
Cumin: Adds depth and earthy warmth.
Paprika: Offers mild heat and vibrant color.
Turmeric: Gives the sauce a beautiful golden hue.
Onion: Provides a savory base to the sauce.
Salt and pepper: Essential for bringing out the best in every bite.
Olive oil or ghee: For cooking the chicken and sautéing the aromatics.
Lemon juice: A splash at the end brightens the dish and balances the creaminess.

How To Make the Homemade Butter Chicken With Coconut Milk

Step 1: Sear the Chicken

Cut the chicken into bite-sized pieces. Heat oil or ghee in a skillet over medium-high heat. Add the chicken and cook until lightly browned but not fully cooked through. Remove and set aside.

Step 2: Sauté Aromatics

In the same pan, add a bit more oil if needed. Sauté chopped onion until softened, then stir in minced garlic and ginger. Cook until fragrant.

Step 3: Build the Sauce

Add tomato paste, garam masala, cumin, paprika, and turmeric. Stir well and let the spices toast for a minute to deepen their flavor.

Step 4: Simmer in Coconut Milk

Pour in the coconut milk and stir until smooth. Bring to a gentle simmer, then return the chicken to the pan. Cover and simmer on low heat for about 15–20 minutes, or until the chicken is fully cooked and tender.

Step 5: Finish and Serve

Taste and adjust seasoning with salt, pepper, and lemon juice. Serve hot over rice or with warm naan bread.

How to Serve and Store Homemade Butter Chicken With Coconut Milk

This dish is perfect for both a weeknight dinner and a make-ahead meal. It serves 4 hungry people generously. Pair it with steamed basmati rice, brown rice, or warm naan bread to make a complete and satisfying plate. A sprinkle of fresh cilantro on top adds color and freshness.

To store leftovers, transfer to an airtight container and refrigerate for up to 4 days. It actually tastes even better the next day as the flavors continue to meld. For longer storage, freeze it in portions and thaw overnight in the fridge before reheating gently on the stove.

What to Serve With Butter Chicken?

Basmati Rice

The fragrant, fluffy grains of basmati are the classic companion and soak up the sauce perfectly.

Garlic Naan

Soft, buttery naan brushed with garlic makes every bite more indulgent.

Cucumber Raita

This cooling yogurt-based side is a refreshing contrast to the warm spices.

Roasted Cauliflower

A lightly spiced roasted cauliflower adds texture and a healthy veggie boost.

Mango Chutney

A spoonful of sweet and tangy chutney brightens the dish and cuts through the richness.

Sautéed Spinach

A simple side of wilted spinach balances the meal with extra greens.

Lentil Dal

For a protein-packed vegetarian side, dal adds heartiness and another layer of spice.

Pickled Red Onions

Their sharp bite adds zing and a pop of color.

Want More Chicken Dinner Ideas?

If you’re in the mood for more comforting and flavorful meals like this, you’ll enjoy these:

Try the Herby Chicken Meatball Bowl for a fresh and vibrant dinner.
Warm up with this cozy Creamy Parmesan Italian Sausage Soup.
Need a fast one-pan meal? This One Pot Creamy Sausage Rigatoni is perfect.
Make weeknight magic with Chicken Scampi with Garlic Parmesan Rice.
Craving a twist on comfort food? This White Chicken Enchilada Casserole delivers.

Save This Recipe For Later

📌 Save this recipe to your Pinterest dinner board so you can come back to it any time.

And if you do make this dish, let me know in the comments how you customized it. Did you use thighs or breasts? Add extra chili for heat? Or maybe paired it with garlic naan?

Explore beautifully curated dinner favorites and feel-good dishes on Janet Dishes on Pinterest and discover your new weeknight staple.

Conclusion

Homemade Butter Chicken With Coconut Milk is comfort food with a fragrant twist. It’s rich, creamy, easy to make, and dairy-free thanks to the coconut milk. Whether you’re serving it up for family dinner or meal prepping for the week, this is one of those recipes that feels both nourishing and luxurious. Once you try it, it just might become a staple in your rotation.