Jump to Recipe Jump to Video Print Recipe

Paneer Chilli is a popular, spicy, and flavorful Indo-Chinese vegetarian starter or appetizer recipe where paneer cubes are tossed in a simple, easy, aromatic sauce.

These are better than any restaurant-style paneer as they have fewer sauces, no MSG or fancy sauces, or any food color.

Paneer chilli tastes the best with INDO CHINESE FRIED RICE, VEG HAKKA NOODLES, or GHEE RICE.

If you have not planned your Diwali, Thanksgiving, or Christmas dinner party menu, then add this paneer chilli recipe for all your vegetarian friends. They will love these. We call paneer vegetarian chicken because you can replace chicken with paneer in all popular chicken dishes. Agree?

I have used store-bought paneer today. You can also check my recipe on HOMEMADE PANEER.

SOME OF MY FAVORITE, EASY AND POPULAR PANEER RECIPES INCLUDE

PANEER BUTTER MASALA
PANEER JALEBI - new for Diwali
PANEER PEPPER DRY / PANEER KADI PATTA
PANEER IN BUTTER GARLIC CREAM SAUCE – new and loved by my readers
NO ONION, NO GARLIC PANEER CURRY
JAIN STYLE PALAK PANEER
PANEER HARIYALI
PANEER PARATHA
PALAK PANEER
PANEER TIKKA MASALA
RASMALAI

What is your favorite paneer dish? Sweet or savory?

Making of Chilli Paneer - dry, semi-dry, or gravy is easy at home with these 4 easy steps

First step - coat the paneer in corn flour batter and fry until crispy.

Second step - spicy chilli sauce is made by sauteing red chile, garlic, ginger, onion, capsicum, green chile, along with soy sauce and vinegar.

Third step - slurry made using cornstarch is added to thicken your chilli sauce. The amount of slurry is the only thing that varies. You can completely skip adding slurry for the dry version. Add a small amount of slurry for semi-dry, and add a large portion if you want a gravy.

Fourth step - toss the fried paneer in chile sauce, garnish with spring onions and coriander leaves (cilantro), and enjoy.

Ingredients for Paneer Chilli recipe

To fry paneer cubes

2 tablespoon All-purpose flour or Maida
2 tablespoon Cornflour or corn starch
½ teaspoon Salt
2 cups Paneer cubes (200 to 250 g)
Oil for frying

To make chili sauce for paneer

2 tablespoon Oil
3 Dry red chilies, chopped into small pieces
2 tablespoon Garlic cloves, finely chopped
1 tablespoon Ginger, chopped
1 Onion, cut into cubes
½ Capsicum or bell pepper, cut into cubes
1 tablespoon Green onions or Spring onions, more for garnish
½ teaspoon Salt
½ teaspoon Sugar
1 tablespoon of Cornflour
½ cup Water
1 tablespoon Soy sauce
2 tablespoon Coriander leaves, for garnish.

Green chili sauce

This step is optional. You can even use 1 tablespoon of store-bought green chilies sauce.
6 to 8 Green chilies
½ teaspoon Salt
1 teaspoon Vinegar

How to make Paneer chilli at home?

If you are making green chile sauce at home:

In a blender, add green chilies, salt, and vinegar and grind it to paste. You can use 1 tablespoon store-bought green chile sauce if readily available. Else, simply chop and add 3 green chilies with 1 teaspoon vinegar to the recipe.

For frying the paneer:

In a bowl, add flour, corn starch, salt, water little by little (approx 3 tbsp), and mix to form a batter that is not too thick or thin. Toss paneer cubes in this batter.

Heat oil in a pan for frying on medium flame. Once the oil is hot, add paneer cubes and fry until the batter turns crispy and golden brown. In total, it takes about 4 minutes of frying. Transfer it to a paper towel to absorb excess oil. Keep this aside.

Making of chilli paneer:

In a pan on medium heat, add oil. Once hot, add dry red chilies and saute for 30 seconds. Add garlic and saute for 30 seconds. Add ginger and saute for a few more seconds.

Now add onions, turn the flame to high and saute for a minute. Add capsicum and continue to saute for another 30 seconds. Add 1 tablespoon of green chili paste (store-bought or prepared above), green onions, salt, sugar, and mix.

Meanwhile, add 1 tablespoon of cornflour in a bowl with ½ cup of water and mix to form a slurry.

Add this slurry to the dish along with soy sauce and toss to combine and cook till the gravy thickens - it takes about a minute.

Finally, add fried paneer and cook for two minutes so that they are heated through. Garnish with some more spring onions, coriander leaves, and toss to combine.

Tips:

Paneer can be shallow fried in a pan, grilled in oven or bbq, or deep-fried. I have shallow fried.
Don't fry the paneer for a long time as it will make the paneer hard and chewy. Total fry time should be between 2 to 4 minutes.
Vary the sauces and spices to your taste.
Do not add too much cornflour, as this will make your dish starchy and spoil the taste.

What can I substitute paneer for?

If you want a vegan version, you can use tofu instead of paneer. Else you can replace paneer with cauliflower (gobi), baby corn, potato, or mushroom.
If you love meat, you can even make chilli chicken following the same steps.