Butter paneer masala and shahi paneer look very similar to each other but are different dishes. Both involve sweet and creamy gravy of tomatoes, cashews, and onions, but the paneer butter masala has a deeper flavor profile due to various whole spices that are added to it. Shahi paneer has a sweeter base to it. In paneer butter masala various whole spices are added to balance the sweetness and enrich its flavor profile. Also, predominantly cream is used in shahi paneer and butter in butter paneer.