Although both dishes are made with tomato and butter-based gravy, paneer tikka masala tends to be slightly spicier and utilizes onion with aromatics. In some recipes, the paneer is also marinated, cooked on skewers in a tandoor, then added into the gravy. Paneer butter masala, on the other hand, is sweeter and creamier, does not include onion, and the paneer is usually raw when it's added into the gravy.