This quick & easy Chili Paneer recipe features crispy paneer cubes stir-fried with crunchy onions, peppers and whole red chilies in an umami-packed sauce. It's a delicious Indo-Chinese dish ready in 25 minutes, best served with rice or noodles.

What is Indo-Chinese cuisine?
Indo-Chinese is a distinct cuisine formed through the adaptation of Chinese ingredients and cooking techniques combined with Indian ingredients and tastes. This is popular not only in India but amongst all the Indians living outside of India as well.
Why we love this recipe for Chili Paneer
Easy enough to make on a week-night
Packed with Umami flavors
Beats take out any day
The ingredients for Chili Paneer recipe:


Paneer - Firm paneer that will retain its shape.
Onion – Long thin slices or squares
Red or Green Bell Pepper - Long thin slices or squares
Ginger Garlic paste
Corn flour - Binds the sauce
Oil - For shallow frying and for making the sauce
Dark Soy sauce and Light soy sauce – For salty umami flavor
Green Chili paste - For the heat
Vinegar and Red Chili sauce
Black Pepper
Salt
Instructions:
How to prepare the Paneer
Cut the paneer in cubes.
Sprinkle Salt and Black Pepper on the cubes and mix well coating the Paneer cubes
Sprinkle 2-3 Tbsp. of Corn Flour on the Paneer cubes and coat well.
In a frying pan, add about 4 Tbsp. of Oil and heat on medium heat.
Place Paneer cubes in hot oil and shallow fry. Paneer should be golden brown on the bottom.
Flip the paneer once and fry until golden brown on the other side as well.
Remove from heat. Remove all the Paneer cubes from the pan and onto the plate covered with paper towels to absorb all the excess oil. Set aside.


How to make the gravy:
If using the same pan for gravy, remove additional oil and keep about 3 Tsp. oil in the pan. If using a separate pan, add 3 tsp. oil to it and heat on high heat.
Add Ginger Garlic paste and Chili paste and sauté for a few seconds.
Add Onion and sauté for 3 – 4 minutes while stirring
Add Bell Pepper and sauté for another minute.


Add Dark Soy sauce Light Soy sauce and Red Chili Sauce and sauté for 30 seconds.
In a small bowl, take 2 Tbsp. of Corn flour and add ½ cup of water. Mix well to make a slurry.
Add this slurry to the frying pan and mix. This step will ensure all the vegetables are coated well with sauce and the gravy comes together well.
Finally add salt and cook for 2 minutes.


Add Paneer and mix well so that Paneer is covered with gravy.
Top with Green onion or a sprinkle of sesame seeds and serve warm.

Recipe Variations
Add some chopped Celery and Green onion along with Red Onion
Storing and Making ahead tips
You can make the gravy a day in advance. Just before serving, add Corn flour slurry and Paneer and mix. This will ensure best taste and texture.
Any leftovers will stay good in refrigerator for up to 2 days.
Some more delicious recipes to try:
Simple and delicious Paneer Chili with gravy
Ingredients
- 1 Block Paneer or 250 gms
- ½ tsp. Black pepper
- ½ Cup Onion Long thin slices
- ¾ Cup Red or Green Bell Pepper Long thin slices or squares
- 2 Tbsp. Ginger Garlic paste – 2 Tbsp.
- ¼ plus 2 Tbsp. Cup Corn flour
- Oil For shallow frying and for making the sauce
- 2 Tbsp. Dark Soy sauce
- 1 Tbsp. Light soy sauce
- ½ tsp. Green Chili paste
- 2 Tbsp. Red Chili Sauce
- 1 tablespoon Vinegar 1 Tbsp.
- Salt per taste
Instructions
How to prepare the Paneer
- Cut the paneer in cubes.
- Sprinkle Salt and Black Pepper on the cubes and mix well coating the Paneer cubes
- Sprinkle 2-3 Tbsp. of Corn Flour on the Paneer cubes and coat well.
- In a frying pan, add about 4 Tbsp. of Oil and heat on medium heat.
- Place Paneer cubes in hot oil and shallow fry. Paneer should be golden brown on the bottom.
- Flip the paneer once and fry until golden brown on the other side as well.
- Remove from heat. Remove all the Paneer cubes from the pan and onto the plate covered with paper towels to absorb all the excess oil. Set aside.
How to make the gravy:
- If using the same pan for gravy, remove additional oil and keep about 3 Tsp. oil in the pan. If using a separate pan, add 3 tsp. oil to it and heat on high heat.
- Add Ginger Garlic paste and Chili paste and sauté for a few seconds.
- Add Onion and sauté for 3 – 4 minutes while stirring
- Add Bell Pepper and sauté for another minute.
- Add Dark Soy sauce Light Soy sauce and Red Chili Sauce and sauté for 30 seconds.
- In a small bowl, take 2 Tbsp. of Corn flour and add ½ cup of water. Mix well to make a slurry.
- Add this slurry to the frying pan and mix. This step will ensure all the vegetables are coated well with sauce and the gravy comes together well.
- Finally add salt and cook for 2 minutes.
- Add Paneer and mix well so that Paneer is covered with gravy.
- Top with Green onion or a sprinkle of sesame seeds and serve warm.
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