Yogurt adds a tangy and creamy element to this paneer tikka masala recipe. The paneer cubes are marinated in a yogurt-based marinade, which helps to tenderize the paneer and infuse it with flavor. The marinated paneer is then grilled and simmered in a tomato and yogurt sauce, creating a deliciously creamy and tangy dish. It's a perfect choice for those who enjoy a hint of tanginess in their meals.