First prepare the marinade. Place the yogurt in a piece of cheese cloth and hang to allow the whey to drip away( refer notes). Add the marinade to yogurt and mix well. Make gashes in the chicken if using pieces on the bone. Marinate the chicken in the yogurt mixture for at least 1 hour, preferably 2; for best results leave overnight.
Heat 4-5 tbsp oil in a large, thick-bottomed skillet and put in the chicken with the marinade. Cover and cook on low-medium heat till the chicken is done. Turn the chicken over during cooking. Keep the cooked chicken aside.
Scald the tomatoes for the makhani sauce and peel off the skin. Reduce to a semi-pulp with a fork or potato masher. Heat 2 tsp oil in a frying pan and put the tomato pulp. Cook for 5 mins or so until the liquid has evaporated slightly. Add the chilled butter and paprika; after the butter has melted, let it cook for just 1 minute. Taste, if its not sour, add vinegar. Add the kasuri methi (crush it using hands or mortar & pestle) and garam masala and salt. After 30 seconds, add the cream and stir. The makhani sauce is ready. Add the cooked chicken pieces to the sauce and mix well. Serve hot.
Update as on 28/08/09: Some changes are made in the the qty of certain ingredients (yogurt & tomato) . Initially, I mentioned it in my notes below,but looks like most people read the notes after they finish cooking. So I thought its better to make the changes directly in the recipe itself :) and now you see the updated recipe.
Notes by the author of the recipe: You can cook the chicken ahead of time. But makhani sauce takes only 5-6 mins and should be made when the dish is to be eaten. In India, restaurateurs mix a little papaya puree into the marinade as a tenderizer. The above quantity serves 4-5 people.
