The chain's own brand Takeaway Butter Chicken could be lethal for those who suffer from a nut allergy.
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And Britain's biggest grocer is urging curry fans to check fridges and freezers for the meal which was made with the wrong sauce.
Two batches with use by dates of January 24 and 25 2017 are at the centre of the scare and being urgently recalled.
The Food Standards Agency (FSA) warned the curries were a "possible health risk for anyone with an allergy to cashew nuts" and called on shoppers who have already bought the affected ready meals to return them for a full refund.
Recall notices have put up across hundreds of stores and Tesco revealed its supplier had used a cashew nut based sauce by mistake, so the label does not carry a nut allergy warning.
It apologised and said in a statement: "As a precautionary measure, we have recalled selected batches of our Take Away Butter Chicken. Customers should return the product to a store for a full refund."
FSA figures show around ten people a year die from a severe reaction to food allergies.
The tiniest trace of nuts can lead to fatal anaphylactic shock and the FSA said: "If you have bought the products and have an allergy or intolerance to cashew nuts, do not eat."
Milder reactions to nut allergies include an itchy sensation inside the mouth, throat or ears or hives.
But major symptoms are swelling of the face, around the eyes, lips, tongue and roof of the mouth and vomiting.
The 385g Butter Chicken cartons affected have the batch codes L014K and L015K.