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This hot & spicy Indo-Chinese chilli paneer stir-fry is the ultimate remedy for comfort food cravings. Golden, crisp-edged paneer cubes are tossed in a glossy, umami-rich sauce infused with garlic, soy, and lots of chilies. It’s just like your favorite street-style version.
Colorful bell peppers and onions add crunch and a touch of sweetness, while a splash of vinegar cuts through with just the right amount of zing. Serve it sizzling hot as an appetizer or pile it over fried rice or Hakka Noadles for a hearty main.


My Take on Chilli Paneer
If you’ve seen my chilli chicken recipethink of chilli paneer as its vegetarian cousin. I do make it little differently, though, because paneer on its own can be quite mild.
In my version, indian spices meet chinese flavors. I add a generous mix of ground Indian spices and not just one, but two forms of chilli along with ground white pepper. It definitely has a kick, but don’t worry, the heat is balanced and not at all overwhelming.
Start with good quality paneer. It’s the hero ingredient and you want that the paneer stays creamy on inside after frying, so avoid low fat paneer. If desired, you can definitely air fry the paneer.
Don’t feel too locked in if you don’t have the exact ingredients. Use paprika instead of kashmiri chilli powder, use serraro peppers instead of green chilli and black pepper powder instead of ground white pepper. For real taste, I do recommend that you use dark soy sauce and not substitue it.
I use a flour free coating in my recipe. By skipping the flour and using just cornstarch, you get a thinner, more delicate crust that still delivers crunch without masking the texture of the paneer itself. Flour based crust has a higher tendency to get soggy.
One of the trickiest part of making any Indo Chinese dish is getting the cornstarch right. In chilli paneer, it serves a double purpose. It’s used to coat the paneer and also acts as a thickener for the sauce. If you follow the quantities I mention in the recipe card, the coating will stay light and crisp without turning crackly, and the sauce will be perfectly thick without becoming gloopy.


Tips
- Like most indo chinese dishes, chilli paneer too comes together pretty quickly and to retain the crunch, color and flavor of the dish, make sure that you prepare everything before you start cooking. Chop the vegetables, cube the paneer, make cornstarch slurry and place condiments near your cooking station.
- Make sure to use fresh paneer, soak store-bought for soft center and most importantly, avoid over-frying so that the paneer wont get rubbery.
- Lastly, try to use a wok, if possible, for the perfect smokiness and to seal in in flavor and texture.
Ingredients




What is Dark Soy Sauce? – It is darker in color, thicker and slightly sweeter than light soy sauce or all-purpose soy sauce. Dark soy sauce is extensively used in Indo Chinese cooking. In chilli paneer, it not only adds a rich color but also brings a bold savory flavor which when combined with chillies, truly makes the taste stand out. For years I have been using Ching’s Secret dark soy sauce and love it! Feel free to use the brand you love.
See recipe card for all other ingredient quantities and substitutions.
Instructions


- Step 1: In a bowl, add the paneer cubes and add pepper powder, turmeric powder, red chilli powder, garam masala powder, black pepper powder and salt. Now sprinkle cornstarch over the paneer.


- Step 2: Don’t add water at first. Very gently (else paneer might break), using both hands (in a salad tossing motion) coat the paneer in spices and cornstarch. Sprinkle(do not pour) water slowly and,toss the paneer pieces until the cornstarch clings and forms a very light, even coating. You will be able to see paneer surface, that’s fine!
Paneer Coating Technique – The goal is a slightly sticky texture that helps crisp up the surface of paneer when frying or air frying, while locking in the spices. Think of it like tossing delicate fruit in sugar. Once coated, let the paneer rest for 5–10 minutes so the starch can bind better before cooking. Coating paneer for chilli paneer is different from when you make paneer pakoras. We don’t want a pakora style coating.


- Step 3: Fry the paneer on medium heat, in batches until golden and crispy on both sides. Due to ground spices, the color of the coating will be dark.


- Step 4: Take out the fried paneer in plate and let stand while you make the sauce. For air frying, see instructions in recipe card.


5. Step 5: Remove all the frying oil from the wok. Add 2 tablespoon cooking oil and heat up on high. Add the chopped ginger, garlic, cilantro stems, green chillies and scallion white parts to the hot oil. Also add the green chilli paste. Stir fry for 10-15 seconds taking care not to burn any thing.


6. Step 6: Next, add in the onion petals and cubed bell peppers, a sprinkle of salt and stir fry the vegetables for 1-2 minutes on high heat until you see light char on them. Make sure that the vegetables remain crunchy.


7. Step 7:Then, add the ketchup, dark soy sauce,light soy sauce, red chili powder, white pepper powder, and brown sugar. Mix and cook for a minutes until the sauce is lightly bubbly.


8. Step 8: Pour the cornstarch slurry, ½ cup water (or you can add vegetable stock).


9. Step 9: Cook for 2–4 minutes, until the sauce thickens slightly and begins to glisten. Chilli paneer typically doesn’t have much gravy; instead, the sauce should coat the bell peppers, onions, and paneer evenly without being too dry or overly runny.


10. Step 10:Add the fried paneer back to the wok along with chopped scallion green parts, and fresh cilantro.Mix very well until the paneer is well coated in the sauce.Fry for 1-2 minutes on high heat. Your chilli paneer is ready. Serve immediately else paneer will get soggy.




Street Style Chilli Paneer
This spicy & tangy chilli caneer is made with crispy paneer and veggies in a bold sauce. Try this easy street style indo chinese recipe and serve as an appetizer or side dish with noodles or fried rice.
Ingredients
For Crispy Paneer
- 8 oz(226 g) paneer
- ½ teaspoon salt
- ¼ teaspoon black pepper powder
- ¼ teaspoon white pepper powder
- 1 teaspoon red chilli powder (hot! adjust to taste)
- ¼ teaspoon turmeric powder
- ¼ teaspoon Garam Masala Powder
- 2-3 tablespoon cornstarch
- 1-2 tablespoon water or as needed
- Oil for deep frying
For Chilli Sauce
- 2 tablespoon oil
- 1.5 tablespoon garlic finely chopped
- ½ tablespoon ginger finely chopped
- 1 tablespoon cilantro stems finely chopped
- 3 indian green chillies (hot! adjust to taste) halved lengthwise or left slit (for kids)
- 3 scallions white & green parts chopped seperately
- 1 small onion cut into petals
- ½ cup bell pepper cut similar size as onion
- 1.5 tablespoon green chilli paste (grind 3-4 indian green chillies to a fine paste), adjust quantity to taste
- ½ teaspoon brown sugar
- ½ teaspoon red chilli powder
- ½ teaspoon white pepper powder
- ½ tablespoon cornstarch make a slurry with 2 tablespoon cold water
- ⅓ -½ cup water or stock or as needed to adjust the consistency of sauce after adding cornstarch slurry
- 1 tablespoon cilantro chopped, for garnish
Condiments
- 1 tablespoon Dark I’m Sauce
- 1 tablespoon light soy sauce
- 1 tablespoon ketchup
- 1 tablespoon vinegar adjust quantity to taste
Instructions
Prepare the Paneer
In a large mixing bowl, place the paneer cubes. Sprinkle over them a combination of ground spices – turmeric powder, red chilli powder, white pepper powder, black pepper, garam masala, and salt. Next, slowly dust the paneer with cornstarch. Do not add any water at this stage.
With a gentle hand (as you would toss a delicate salad), use both hands to coat the paneer evenly in the spices and cornstarch mixture. Be careful not to break the cubes.
Gradually sprinkle a few drops of water (do not pour), continuing to toss the cubes until the cornstarch begins to cling lightly to the surface of the paneer. You should still be able to see parts of the paneer through the coating.
Heat up oil in wok over medium heat. Deep fry the paneer in small batches until golden and crispy on both sides. Because of the spices in the coating, the paneer may take on a deeper, slightly darker hue as it fries.
- Once crisp, transfer the fried paneer to a plate and set aside. Air Fryer Method: Toss paneer with spices and cornstarch as directed. Layer the paneer cubes in a single layer on the basket. Spray lightly with oil and air fry at 200°C (390°F) for 8–10 minutes, shaking halfway through.
Make the Chilli Sauce
Now, remove the frying oil from the wok and add 2 tablespoons of fresh cooking oil. Heat it over high flame.
Add chopped ginger, garlic, cilantro stems, green chillies, and the white parts of scallions. Also stir in of green chilli paste. Stir fry everything for 10–15 seconds, just until aromatic, making sure nothing burns.
Toss in the onion petals and bell pepper cubes. Add a small pinch of salt, and stir-fry over high heat for 1–2 minutes until the vegetables begin to char slightly at the edges. They should remain crisp and vibrant, not soft or wilted.
Mix in the cornstarch slurry. Add ⅓ cup to ½ cup of water or vegetable stock, to the pan. Let it simmer for 2–4 minutes, so that the sauce thickens and coats the vegetables nicely. The consistency should be thick enough to cling to the paneer and vegetables,not too runny and not entirely dry.
Return the fried paneer to the wok along with the chopped green parts of scallions and a handful of fresh cilantro. Toss everything together thoroughly, so that the paneer is well coated in the rich, spicy sauce.
Stir-fry for another 1–2 minutes over high heat. Your chilli paneer is now ready to serve. Enjoy it hot, straight from the wok, the paneer stays crisp only if served immediately.
Notes
- Like most indo chinese dishes, chilli paneer too comes together pretty quickly and to retain the crunch, color and flavor of the dish, make sure that you prepare everything before you start cooking. Chop the vegetables, cube the paneer, make cornstarch slurry and place condiments near your cooking station.
- Make sure to use fresh paneer, soak store-bought for soft center and most importantly, avoid over-frying so that the paneer wont get rubbery.
- Lastly, try to use a wok, if possible, for the perfect smokiness and to seal in in flavor and texture.