Paneer Chili Recipe- Spicy Indo-Chinese Fried Paneer with Peppers

Last Updated on 4 months by Neha Deshmukh

Paneer Chili Recipe: Spicy Indo-Chinese Fried Paneer with Peppers

Hey everyone! If you’re anything like me, you absolutely love a good Indo-Chinese dish. There’s just something so satisfying about that sweet, spicy, and tangy flavor combination. And honestly, nothing beats a plate of perfectly cooked Paneer Chili – crispy paneer tossed in a vibrant, flavorful sauce. I first made this when I was craving takeout but didn’t want to leave the house, and it quickly became a family favorite! It’s surprisingly easy to make at home, and I’m so excited to share my recipe with you.

Why You’ll Love This Recipe

This Paneer Chili recipe is a winner for so many reasons! It’s quick – ready in under 30 minutes. It’s packed with flavor – that perfect balance of sweet, sour, and spicy. And it’s totally customizable – adjust the spice level to your liking. Plus, it’s a fantastic way to enjoy paneer, a classic Indian cheese, in a fun and exciting way. It’s a guaranteed crowd-pleaser, whether you’re serving it as a starter or with a side of fried rice or noodles.

Ingredients

Here’s what you’ll need to make this delicious Paneer Chili:

• ¼ cup corn flour (approx. 30g)
• ¼ cup maida (all-purpose flour) (approx. 30g)
• ½ tsp pepper (approx. 2.5g)
• ½ tsp Kashmiri red chili powder (approx. 2.5g)
• 1 tsp soy sauce (approx. 15ml)
• ¼ tsp salt (approx. 1.5g)
• ½ tsp ginger-garlic paste (approx. 5ml)
• ¼ cup water (approx. 60ml)
• 9 paneer cubes (approx. 200-250g)
• Oil for deep frying
• 4 tsp oil (approx. 20ml)
• 2 garlic cloves, minced
• 4 tbsp spring onion, chopped (approx. 30g)
• 2 tbsp onion, chopped (approx. 20g)
• 2 green chilies, slit
• ½ cup capsicum (green & red), chopped (approx. 75g)
• 2 tbsp vinegar (approx. 30ml)
• 2 tbsp soy sauce (approx. 30ml)
• 1 tbsp chili sauce (approx. 15ml)
• ¼ tsp pepper (approx. 2.5g)
• ¼ tsp salt (approx. 1.5g)
• 1 tbsp corn flour (approx. 10g)
• 1 cup water (approx. 240ml)

Ingredient Notes

Let’s talk ingredients! A few little things can make a big difference:

• Kashmiri Red Chili Powder: This is key for that beautiful vibrant red color and a mild, fruity heat. It’s not super spicy, so don’t be shy with it!
• Maida vs. Corn Flour: The combination of maida and corn flour gives the paneer a lovely crispy texture. Using all corn flour can make it a bit too brittle, while all maida might not get as light and airy.
• Oil for Deep Frying: Peanut oil, vegetable oil, or canola oil all work well for deep frying. Just make sure it’s hot enough – around 350°F (175°C) – for perfectly crispy paneer.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, let’s make the batter. In a bowl, whisk together the corn flour, maida, pepper, Kashmiri red chili powder, soy sauce, salt, ginger-garlic paste, and water until you have a smooth batter.
2. Now, gently coat each paneer cube in the batter, making sure it’s evenly covered.
3. Heat oil in a deep frying pan or wok over medium-high heat. Carefully drop the battered paneer cubes into the hot oil and deep-fry until they’re golden brown and crispy – about 3-4 minutes.
4. Remove the fried paneer with a slotted spoon and place them on a plate lined with paper towels to drain any excess oil.
5. In a separate pan, heat 4 tsp of oil over medium heat. Add the minced garlic and sauté for a few seconds until fragrant.
6. Add the chopped spring onions, onions, and slit green chilies. Sauté until the onions are translucent and softened, about 2-3 minutes.
7. Toss in the chopped capsicum and sauté for another 2 minutes, until it’s slightly tender-crisp.
8. Now for the sauce! Add the vinegar, soy sauce, chili sauce, pepper, and salt to the pan. Stir well to combine.
9. In a small bowl, dissolve the corn flour in 1 cup of water. Pour this slurry into the pan and cook on high heat, stirring constantly, until the gravy thickens – this should only take a minute or two.
10. Gently add the fried paneer cubes to the pan and mix gently to coat them evenly with the flavorful gravy.
11. Garnish with extra chopped spring onions and serve immediately!

Expert Tips

• Don’t overcrowd the pan when frying the paneer. Fry in batches to ensure even cooking and crispiness.
• Make sure the oil is hot enough before adding the paneer. If it’s not hot enough, the paneer will absorb too much oil and become soggy.
• Stir the gravy constantly while it’s thickening to prevent it from sticking to the bottom of the pan.

Variations

This recipe is super versatile! Here are a few ways to customize it:

• Vegan: Swap the paneer for firm or extra-firm tofu, pressed to remove excess water.
• Gluten-Free: Use a gluten-free flour blend instead of maida.
• Spice Level: Adjust the amount of Kashmiri red chili powder and green chilies to control the heat. My friend, Priya, loves to add a pinch of cayenne pepper for an extra kick!
• Festival Adaptations: This makes a fantastic starter for parties. I often make a larger batch when we have guests over.

Serving Suggestions

Paneer Chili is delicious on its own as an appetizer, or you can serve it with:

• Fried Rice
• Hakka Noodles
• Steamed Rice
• A side of fresh salad

Storage Instructions

Leftovers can be stored in an airtight container in the refrigerator for up to 2 days. Reheat gently in a pan or microwave. The paneer might lose a little of its crispiness upon reheating, but it will still be delicious!

FAQs

1. What type of paneer works best for this recipe – fresh or frozen?

Fresh paneer is ideal, but frozen paneer works just fine! Just make sure to thaw it completely and pat it dry before coating it in the batter.

2. Can I make the gravy ahead of time? How should I store it?

Yes, you can! Make the gravy and store it in an airtight container in the refrigerator for up to 24 hours. You might need to add a splash of water when reheating to adjust the consistency.

3. How can I adjust the sweetness/sourness of the chili sauce?

Add a little sugar to increase the sweetness, or a squeeze of lemon juice or extra vinegar to enhance the sourness.

4. What is the best way to prevent the paneer from becoming rubbery when fried?

Don’t overcook the paneer! Fry it until it’s golden brown and crispy, but no longer. Also, make sure the oil is hot enough.

5. Can I bake the paneer instead of frying it? What adjustments should I make?

Yes, you can bake it! Preheat your oven to 200°C (390°F). Place the battered paneer cubes on a baking sheet lined with parchment paper and bake for 15-20 minutes, flipping halfway through, until golden brown and crispy. You might need to brush them with a little oil for extra crispiness.