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What Great Grandma Ate / Recipes / Main Dishes / Quick & Easy Instant Pot Butter Chicken Recipe (Keto & Dairy Free)

Quick & Easy Instant Pot Butter Chicken Recipe (Keto & Dairy Free)

Last Updated on February 20, 2025 by Jean Choi

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This quick and easy dairy free, keto butter chicken recipe is creamy, comforting, and packed with flavor!  An under-30-minute recipe made in your Instant Pot. Enjoy with cauliflower rice for low-carb, or rice & naan for an authentic, delicious meal! 

Instant Pot butter chicken served rice rice and naan

What is Butter Chicken?

Butter chicken is a classic, popular Indian dish of marinated chicken cooked in a creamy tomato-based sauce. It is prepared by creating a marinade from a mixture of yogurt and spices, then cooking them in a tomato sauce flavored with butter, cream, and various spices such as garam masala, turmeric, and fenugreek. The result is a rich and flavorful dish that is often served with rice or naan bread.

I switched things up to make a still-delicious butter chicken recipe, but mine is completely dairy free! I swapped the yogurt, butter, and cream for dairy-free alternatives, and it turns out this low-carb butter chicken is just as tasty as the original but healthier and more lifestyle friendly. 

What Makes This Recipe Great

Anytime my husband asks where we should go out to eat for dinner, I always say Thai or Indian food. We are so fortunate to live in a rich, diverse community, so we have some amazing ethnic cuisine spots that are authentic and so dang delicious!

One of my favorite Indian takeout dishes is butter chicken. It’s so creamy, comforting, and just so wonderful with some rice and naan. However, as someone who has a dairy intolerance, I try not to get the takeout version too many times to save myself from tummy troubles. 

Fortunately, I’ve been able to recreate Dairy Free Keto Butter Chicken at home without dairy, and it’s just as delicious and comforting. My toddler even asks for a straw to drink up every last bit of the sauce! I hope you enjoy this dairy free butter chicken as much as we do. Even better, it’s also keto, low-carb, paleo, gluten-free, and Whole30-friendly!

If you love making ethnic cuisines at home, try these recipes too: Easy Mango Chicken Curry, Paleo Shrimp Pad Thai, Spicy Thai Basil Chicken Recipe, and Paleo Chicken Yakitori.

Watch a Quick Video for This Recipe

How to Make Instant Pot Keto Butter Chicken

My homemade keto butter chicken comes together in less than 30 minutes, and the whole process is so simple. The sauce is buttery and so flavorful from the delicious combination of spices, and we always go back for seconds.

Instead of cream, I use full-fat coconut cream for the rich base, and it works perfectly. Of course, if you are fine with dairy, you can just use heavy cream instead! It’s one of those dishes that isn’t spicy, so it’s great for the whole family.

Ingredient Notes

recipe ingredients in nesting bowls and labeled.
  • ghee: Ghee is one of my favorite cooking fats that imparts a delicious buttery flavor. I like to make my own, or you can purchase it at a grocery store or online. However, coconut oil or vegan butter also works well for this recipe!
  • onion
  • garlic cloves
  • ginger
  • chicken thighs: I always prefer boneless skinless chicken thighs because they are more tender with more flavor, but chicken breasts will also work. Cut into bite-sized pieces (about 2 inches). 
  • garam masala: This is a spice that’s commonly used in Indian cuisine in curries and soups. It’s a combination of cinnamon, cumin, cardamom, mace, peppercorn, and cumin. You can make it at home, but I usually buy it pre-made.
  • chili powder
  • cumin powder
  • turmeric powder
  • coriander powder
  • sea salt
  • ground black pepper
  • tomato sauce
  • coconut milk: Coconut milk is a great substitute for heavy cream to make this into a dairy-free and Whole30 butter chicken recipe. However, if you want to keep it authentic and have no problem with dairy, just use heavy cream instead.

Step-by-Step Instructions

numbered step by step photos showing how to make this recipe
  1. Turn on the Instant Pot to SAUTÉ and heat ghee in the pot until the Instant Pot indicates that it’s “hot.”
  2. While the Instant Pot is heating up, place the chicken in a bowl and add all the spices to it (from garam masala to ground black pepper) and gently toss together. Set aside. 
  3. Add onion, garlic, and ginger to the Instant Pot and cook, stirring, for 3-4 minutes until the onions are translucent. 
  4. Add the spice-coated chicken to the pot and sauté for 5 minutes until mostly browned. 
  5. Pour in canned tomato sauce and stir together.
  6. Close the lid, and set it on MANUAL for 5 minutes. 
  7. Once it beeps to a finish, let the pressure release naturally for 10 minutes. 
  8. Open the lid and stir in coconut milk. 
  9. Garnish with parsley or cilantro, and serve with rice, naan, or cauliflower rice!
dairy free butter chicken served in a bowl with parsley, rice, and naan.

Expert Tips

  • Frozen Chicken: If using frozen chicken, the Instant Pot will take a bit longer to come to pressure, but the result will still be delicious! 
  • Stovetop Method: Prepare the chicken as instructed in Step 2. Heat a large skillet over medium-high heat and follow Step 3. Add the chicken to the pan and saute for 5 minutes, until mostly browned. Pour in the canned tomato sauce and stir. Bring to a boil, then reduce to a simmer and cook for 15-20 minutes. Stir in the coconut milk, then serve with garnish and enjoy! 
  • Dairy: This is dairy free butter chicken, but if you’re okay with dairy, feel free to substitute my dairy free alternatives for regular dairy. 

Serving Tips

  • I typically like to enjoy this dish with basmati rice and/or naan. If you are making Whole30 or keto butter chicken, you can serve it with cauliflower rice. 
  • Some other great sides are roasted veggies, saag, or a yogurt sauce (raita).

Storage Tips

  • Store leftover keto butter chicken in an airtight container in the fridge for up to 4 days.
  • To freeze, cool completely. Then, add your leftovers to a freezer-safe container and store them in the freezer for up to 3 months! Defrost overnight in the refrigerator and reheat on the stovetop or microwave. 
Indian dish served in a bowl with rice and naan

Recipe FAQs

What’s the difference between butter chicken vs tikka masala?

Butter chicken is made with marinated chicken cooked in a creamy tomato-based sauce, while tikka masala is a spicier dish with a tomato-based sauce. Butter chicken is milder and creamier, while tikka masala is bolder and spicier.

How many carbs does keto butter chicken have?

There are just 5 grams of net carbs per serving! Serve over cauliflower rice to make a complete and veggie-packed meal. 

Is this dairy free butter chicken healthy?

This recipe has 28 grams of protein, 5 net carbs, and 322 calories per serving. Depending on how you serve it, this is a well-balanced, healthy meal! 

More Instant Pot Recipes

Paleo Instant Pot Saag

Instant Pot Thai Coconut Curry Meatballs 

Paleo & Whole30 Chicken Curry

Chicken with Creamy Tomato Sauce

If you make this recipe, please leave me a star rating and comment below! I love to hear your thoughts and feedback. Follow me on social media Instagram, Facebook, and Pinterest for even more delicious recipes!

Instant Pot Butter Chicken served with rice and naan

Quick & Easy Instant Pot Butter Chicken Recipe (Keto & Dairy Free)

This quick and easy keto butter chicken recipe is creamy, comforting, and packed with flavor!  An under-30-minute recipe made in your Instant Pot. Enjoy with cauliflower rice for low-carb, or rice & naan for an authentic, delicious meal! 
4.91 from 11 votes
Print Pin
Course: Main Course
Cuisine: Indian
Keyword: dairy free butter chicken, instant pot butter chicken, keto butter chicken
Prep Time: 2 minutes minutes
Cook Time: 15 minutes minutes
Pressurizing Time: 10 minutes minutes
Total Time: 27 minutes minutes
Servings: 4 servings
Calories: 322kcal
Author: Jean Choi

Video

Ingredients

  • 2 tbsp ghee or coconut oil
  • 1 medium onion chopped
  • 4 garlic cloves minced
  • 1 inch fresh ginger minced
  • 2 lb chicken thighs or chicken breasts, cut into 2 inch pieces
  • 1 tsp garam masala
  • 1 tsp chili powder
  • 1 tsp cumin powder
  • 1 tsp turmeric powder
  • 1 tsp coriander powder
  • 1 tsp sea salt
  • 1/4 tsp ground black pepper
  • 1 15 oz can of tomato sauce
  • 1/2 cup full-fat coconut milk or heavy cream, if you aren't dairy free
  • Cilantro or parsley for garnish

Instructions

  • Set Instant Pot to the Sauté setting and heat ghee in the pot until the Instant Pot indicates that it’s “hot.”
  • In the meantime, place the chicken in a bowl and add all the spices to it (from garam masala to ground black pepper) and gently toss together. Set aside. 
  • Add onion, garlic, and ginger to the Instant Pot and cook stirring for 3-4 minutes until the onions are translucent. 
  • Add the spice coated chicken to the pot and sauté for 5 minutes until mostly browned. 
  • Pour in tomato sauce and stir together.
  • Close the lid of the Instant Pot. Set it on MANUAL for 5 minutes. 
  • Once it beeps to a finish, let the pressure release naturally for 10 minutes. 
  • Manually release rest of the pressure, open the lid, and stir in coconut milk. 
  • Garnish this keto butter chicken with parsley or cilantro, and serve with rice, naan, or cauliflower rice!
Nutrition Facts
Quick & Easy Instant Pot Butter Chicken Recipe (Keto & Dairy Free)
Amount Per Serving (1 serving – makes 4)
Calories 322 Calories from Fat 189
% Daily Value*
Fat 21g32%
Saturated Fat 13g81%
Trans Fat 1g
Polyunsaturated Fat 2g
Monounsaturated Fat 4g
Cholesterol 148mg49%
Sodium 719mg31%
Potassium 507mg14%
Carbohydrates 7g2%
Fiber 2g8%
Sugar 2g2%
Protein 28g56%
Vitamin A 191IU4%
Vitamin C 4mg5%
Calcium 38mg4%
Iron 2mg11%
* Percent Daily Values are based on a 2000 calorie diet.

Notes

Expert Tips

  • Frozen Chicken: If using frozen chicken, the Instant Pot will take a bit longer to come to pressure, but the result will still be delicious! 
  • Stovetop Method: Prepare the chicken as instructed in Step 2. Heat a large skillet over medium-high heat and follow Step 3. Add the chicken to the pan and saute for 5 minutes, until mostly browned. Pour in the canned tomato sauce and stir. Bring to a boil, then reduce to a simmer and cook for 15-20 minutes. Stir in the coconut milk, then serve with garnish and enjoy! 
  • Dairy: This is dairy free butter chicken, but if you’re okay with dairy, feel free to substitute my dairy free alternatives for regular dairy. 

Serving Tips

  • I typically like to enjoy this dish with basmati rice and/or naan. If you are making Whole30 or keto butter chicken, you can serve it with cauliflower rice. 
  • Some other great sides are roasted veggies, saag, or a yogurt sauce (raita).

Storage Tips

  • Store leftover keto butter chicken in an airtight container in the fridge for up to 4 days.
  • To freeze, cool completely. Then, add your leftovers to a freezer-safe container and store them in the freezer for up to 3 months! Defrost overnight in the refrigerator and reheat on the stovetop or microwave. 

What Great Grandma Ate / Jean Choi is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Regarding other affiliate links and affiliate relationships: In order for me to support my blogging activities, I may receive monetary compensation or other types of remuneration for my endorsement, recommendation, testimonial and/or link to any products or services from this blog. Thank you for your support and understanding.

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By Jean Choi | May 30, 2023

Comments

  1. Amber Stehlik says

    April 13, 2018 at 7:55 am

    sounds yummy! If I don’t have an instant pot, how can I modify the recipe for my slow cooker or just on the stove?

    • Jean Choi says

      April 15, 2018 at 10:45 am

      You can cook it in the slow cooker for 5-6 hours on low!

  2. Jess says

    May 24, 2018 at 6:50 pm

    My wife and I are picky about Indian food – love to go out and eat it, but can never get it right at home. Tried mulltiple times with no success whatsoever and finally just stopped trying.

    All of that said, this recipe is amazing. I came across it in a search for FODMAP-friendly and paleo recipes. The only tweak I made was to infuse the ghee with the garlic and onions to make it FODMAP-friendly. We opted to not use the lime, but did use cilantro, which was key. This is definitely going on our weekly menu!

    • Jean Choi says

      May 25, 2018 at 8:20 am

      Thank you so much! I’m so happy you loved it and your words made my day. 🙂

  3. Janet says

    June 15, 2018 at 8:36 pm

    5 stars
    WOW! Seriously WOW! It was a BIG HIT – even with the frustratingly picky 12 year old. I want this for tomorrow night’s dinner, the next night’s dinner, and on and on. The fresh cilantro makes it even more amazing. Thank you for this recipe, what a keeper!

    • Jean Choi says

      June 16, 2018 at 8:49 am

      Thank you so much, so glad you enjoyed it!! Love that your kiddo ate it as well – that’s the best kind of compliment. 🙂

  4. Amanda says

    August 9, 2018 at 7:12 pm

    4 stars
    Most tender chicken I’ve ever made and the flavor was good. My 2 year old ate it so that’s always a win! If only it actually took 17 minutes from start to finish, then it would be super amazing. This took well over an hour to get all the ingredients cut, and cooked. The chicken took a really long time to brown, too. We will make it again but I will just have more realistic expectations of when dinner will be served.

  5. Kris says

    April 16, 2019 at 11:35 am

    If I double the recipe do I need to double the time?

    • Jean Choi says

      April 17, 2019 at 7:54 am

      You can increase to 8 minutes.

  6. Beth says

    January 14, 2020 at 4:55 pm

    Made this for dinner tonight. I don’t have an Instant Pot so I incorporated cooking times from another recipe (cooked onion/garlic/ginger for 15 minutes and when I put chicken and soup in, I cooked it for 25 minutes on medium low). Turned out great! My husband and I both loved it! My daughter ate the chicken pieces but picked them out of the sauce. I’d definitely make this again.

    The chicken was a big pain in the butt to cut up and to get the fat and other stuff off. Not sure if that’s normal. Also, not sure what the best kind of knife to use for cutting chicken would be. I’d welcome any suggestions. Thanks for a yummy recipe!

    • Jean Choi says

      January 15, 2020 at 8:23 am

      So great that you were able to make it on the stovetop! For the chicken, I don’t usually cut off the fat since we are on a high fat diet. But, for cutting any meat, I recommend kitchen shears instead of using a knife. These are the ones I have and they make cutting meat so easy and quick.

    • Laura says

      April 19, 2020 at 4:06 pm

      5 stars
      I made this last night because I miraculously had all of the ingredients! My thighs weren’t all the way thawed so I think this made it easier to cut them upl I added a minute onto the time, just in case, and all came out really well!

  7. Brooke says

    January 31, 2020 at 5:45 pm

    Just finishing up my first Whole30, and your recipes have been life-savers! I’m planning to make this recipe within the next week, but we only have chicken breasts in the freezer. Would recommend any modifications if subbing chicken breasts for thighs?

    • Jean Choi says

      January 31, 2020 at 7:29 pm

      That makes me so happy! Congrats on finishing your Whole30. No, you don’t have to adjust anything at all. Just follow the same instructions. Enjoy!

  8. Sarah says

    April 8, 2020 at 12:12 pm

    Is it possible to use chicken thighs with the bone in? If I need to I can work on cutting the bones out first but would prefer to cook bone-in and eat around them if possible. Thanks!

    • Jean Choi says

      April 8, 2020 at 4:59 pm

      Yes! You don’t have to adjust the cooking time at all. Just brown on both sides before cooking.

  9. Jennifer P says

    July 9, 2020 at 2:51 pm

    5 stars
    Delicious and so easy! I mixed chicken breast and thigh and paired it with cauliflower rice seasoned with turmeric, garlic powder, and ground ginger. Thank you for the wonderful recipe!

    • Jean Choi says

      July 10, 2020 at 11:04 am

      So glad you enjoyed it!!

  10. Sue W. Aka Gramma says

    August 19, 2020 at 4:55 pm

    We have multiple food allergies & medical issues in our household, so we’re always looking for recipes that everyone can eat. I’ve been trying to increase the variety of foods served (and accepted!), so we gave this one a try. As the grandkids would say “Winner! Winner! Chicken dinner!!” We have since made it multiple times per month! All 4 grandkids (10mos, 3, 5 & 6.5) LOVE this recipe! Tonight, we’re tying it with riced cauliflower. Thank you!

    • Jean Choi says

      August 20, 2020 at 1:40 pm

      That’s amazing and makes me so happy! Love that this recipe is kid-friendly in your home as well. Thanks so much for leaving a review!

  11. Kristen says

    December 21, 2020 at 1:41 pm

    5 stars
    This was my first time cooking or eating butter chicken and it was so good! I can’t believe I’ve been missing out on this my whole life!

  12. Ali says

    January 13, 2023 at 8:59 pm

    5 stars
    This recipe is one of a handful of staples in our household! We usually add cauliflower to the instant pot and then serve over regular rice. It’s super easy and always turns out delicious!

    • Jean Choi says

      January 27, 2023 at 11:42 am

      Thank you so much!! So appreciate you leaving a review. 🙂

  13. Pam says

    July 20, 2023 at 7:23 am

    Can you add rice to the bottom of the ip before cooking all?

  14. Christina says

    February 28, 2024 at 12:17 pm

    Has anyone made this dish using tofu? It is one of my favorites as is, but wanting a solid recipe for some vegan friends. I’m worried it might lose some of the flavors enhanced by the chicken.

  15. Jenna Cahill says

    June 1, 2024 at 1:39 pm

    5 stars
    So good and easy!! I didn’t have plain canned tomato sauce on hand, so I used thrive market tomato basil sauce. It was SO good.

    • Jean Choi says

      June 2, 2024 at 2:20 pm

      I’m so glad it worked with the substitution! Thanks for leaving a review.

  16. Melinda says

    September 23, 2024 at 7:50 pm

    5 stars
    LOVE this recipe… I’ve been using it for the past 3 years. Today I added cubed butternut squash and chopped kale to add veggies. It worked great!

    • Jean Choi says

      September 24, 2024 at 10:35 am

      Amazing! I love the additions. Thanks so much for leaving a review!

  17. Josefine says

    November 7, 2024 at 9:17 pm

    5 stars
    This is one of the best butter chicken recipes I’ve made- and it is incredibly easy. I don’t have an instant pot, so I just do the stove top version. Still fast! I used coconut cream the first time I made this because that’s what u had. Extra yummy! It’s become a staple weeknight meal in my house!

  18. Zoey Z says

    November 23, 2024 at 3:27 pm

    5 stars
    Just made this and it was kicking. My partner and I enjoyed this very much. Thanks for this lovely recipe!

    • Jean Choi says

      November 24, 2024 at 3:37 pm

      I’m so happy you enjoyed it!!

  19. Jilla says

    February 4, 2025 at 1:14 pm

    5 stars
    Just made this last night! It was so delicious. My husband was so happy and I was too. It was healthy, tasty, and easy to make. This has become my favorite site to look for healthy Paleo/vegan (Pegan) kind of recipes. I just love to eat a lot of vegetables with my food. I have to avoid dairy and my husband has to avoid gluten. I’m also a pescatarian who decided to recently eat chicken to avoid processed fake meat… so with all our strange and unusual dietary needs this website has really helped me create delicious recipes. Thank you, Jean!!!

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Hi, I’m Jean!

headshot of Jean Choi - blogger of What Great Grandma Ate

I’m a food lover and recipe developer living in Southern California. I love to share simple and approachable gluten-free recipes that are healthy but never sacrifice on flavor. I hope I can help you feel confident in the kitchen and inspire you to try out some new-to-you dishes!

More About Jean

Recipe Key

  • 3030 Min or Less
  • AIPAIP
  • EFEgg Free
  • LCLow Carb
  • NFNut Free
  • PPaleo
  • VVegan
  • W3Whole 30

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