The Butter Chicken or Murg Makhani owes its discovery to the pre-partition time at a small sheet shop in Peshawar, Mukhey da Dhaba where Kundan Lal Gujral worked. The shop was later sold by its owner Mokha Singh to Kundan Lal Gujral who later renamed it as a Moti Mahal in 1950. Butter Chicken was invented by Kundan Lal Jaggi, Kundan Lal Gujral, and Thakur Dass. and Tthe idea was to utilise the leftover Tandoori Chicken and also to introduce a new delicacy with gravy of tomato, cream & butter. The taste was further enhanced with extensive use of Indian spices, sauces & sauté techniques. Butter Chicken is a signature dish of Moti Mahal restaurants which is known for delectable flavour, consistency & great service quality, Today, there are more than 100 Moti Mahal franchises across the Middle East, Canada, South East Asia, China, Europe, and the United States. The palatable authentic taste, consistency and unique cooking method has revolutionised the taste of Butter Chicken and have given India a place on the International Gourmet Map. Kundan Lal Gujral's restaurant Moti Mahal has become a hotspot in Daryaganz, Delhi's dining scene and attracts the interests of many international celebrities and dignitaries like Richard Nixon, John F. Kennedy, Mohammad Reza Pahlavi and recently of celebrity chef Gordon Ramsay.
The immense popularity of Butter Chicken has led to the evolution of other derivates like Chicken Lababdar, Chicken Tikka Masala, Murgh Makhanwallah and other loved Indian delicacies. But Butter Chicken has remained the king of chicken made delicacies.