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Butter Chicken or Murgh Makhani is a popular dish which is considered to be a type of Mughlai cuisine. Mughlai is pronounced as "moogleye". The "murgh" in Murgh Makhani is pronounced as "moorgh" while the makhani is pronounced as "muhkuhnee". Murgh means Chicken while "makhani" means butter; so the direct translation of Murgh Makhani is Butter Chicken. Mughlai dishes are the dishes that the former rulers of South Asia (The Mughals) used to eat. Due to this, many of the South Asian dishes popularized in the West are Mughlai. In my opinion, there is no more influential Mughlai dish than Butter Chicken. The dish was originally made in a Delhi restaurant (not Delhi, CA) in the 1950s. Funnily, this was the same restauraunt that made Dal Makhani. Since then that dish has spread to many western countries inclusing Canada, the UK, Australia, and the United States. Butter Chicken can be served with rice or flatbread. (That tends to be a theme for many South Asian dishes). The dish is made with butter, tomato, water, various spices, and of course, chicken. The butter, tomato, and spices are made into a sauce which is then mized with the cooked chicken.
For those who want a detailed recipe click here.