Paneer Chilli Recipe – Authentic Indo-Chinese Fried Paneer & Capsicum

Last Updated on 2 months by Neha Deshmukh

Paneer Chilli Recipe – Authentic Indo-Chinese Fried Paneer & Capsicum

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 flavour combination. And honestly, nothing beats a plate of perfectly crispy Paneer Chilli. I first made this recipe years ago, trying to recreate my favourite restaurant version, and it’s been a family favourite ever since! Today, I’m sharing my tried-and-true recipe with you. Let’s get cooking!

Why You’ll Love This Recipe

This Paneer Chilli recipe is a winner for so many reasons. It’s relatively quick to make – perfect for a weeknight dinner. It’s packed with flavour, offering that classic Indo-Chinese zing. Plus, it’s surprisingly easy to customize to your spice preference. Whether you like it mild, medium, or fiery hot, this recipe has got you covered.

Ingredients

Here’s what you’ll need to whip up this delicious Paneer Chilli:

• 1 cup Paneer (cubed)
• 2 teaspoon Garlic (finely chopped)
• ?? Onion
• 3 tablespoon Capsicum (chopped)
• 3 Green chilli
• 2 tablespoon All-purpose flour
• 1 tablespoon Corn flour
• 1 teaspoon Lemon zest
• ?? teaspoon Sugar
• ?? teaspoon Turmeric
• 1 pinch Cooking soda
• 2 tablespoon Coriander leaves (chopped)
• 2 tablespoon Spring onion (chopped)
• Oil (as needed)
• Salt (to taste)
• 1 Lemon

Ingredient Notes

Let’s talk ingredients! A few little tips can make all the difference.

Paneer: Choosing the Right Type & Freshness
I prefer using fresh paneer for this recipe, as it holds its shape better during frying. If you’re using frozen, make sure to thaw it completely and gently squeeze out any excess water.

Capsicum: Bell Pepper Varieties for Flavor & Color
I usually use green capsicum, but feel free to mix it up with red or yellow for a more vibrant dish! They all taste great.

Green Chillies: Heat Levels & Regional Preferences
The number of green chillies you use depends on your spice tolerance. I usually go with 2-3, but if you like it really hot, don’t be shy! Remember to slit them lengthwise to release more flavour.

Spices: The Role of Turmeric & Balancing Flavors
Turmeric adds a beautiful colour and subtle earthy flavour. Don’t skip it! A pinch of sugar helps balance the spice and acidity.

Cornflour & All-Purpose Flour: Achieving the Perfect Batter Consistency
The combination of cornflour and all-purpose flour creates a wonderfully crispy and light batter. Don’t overmix it – a few lumps are okay!

Oil: Best Oils for Deep Frying & Stir-Frying
I recommend using a neutral-flavoured oil like vegetable or canola oil for frying. For stir-frying, you can also use peanut oil for a slightly more flavourful result.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, soak the paneer cubes in hot water for about 10 minutes. This keeps them soft and prevents them from becoming rubbery.
2. While the paneer soaks, chop your onion, capsicum, coriander leaves, and spring onion. Slice the green chillies diagonally.
3. Now, let’s make the batter. In a bowl, whisk together the all-purpose flour, corn flour, salt, turmeric, cooking soda, and lemon zest. Gradually add water until you have a smooth, coating consistency.
4. Dip each paneer cube into the batter, ensuring it’s fully coated.
5. Heat oil in a deep frying pan or wok over medium-high heat. Carefully drop the battered paneer into the hot oil and deep fry until golden brown and crispy. Drain on paper towels.
6. In a separate pan, heat a little oil. Add the finely chopped garlic and green chillies and sauté until fragrant.
7. Add the chopped onion and capsicum and cook until the onions turn translucent.
8. Pour in 1 cup of water and bring to a boil. Gently add the fried paneer cubes.
9. In a small bowl, mix the remaining corn flour with a little water to create a slurry. Stir this into the boiling mixture to thicken the sauce.
10. Garnish with chopped coriander leaves and spring onions. Squeeze a little lemon juice over the dish and remove from heat. Serve immediately!

Expert Tips

Here are a few tips to help you nail this recipe:

Achieving Crispy Paneer
Soaking the paneer is key! Also, don’t overcrowd the pan when frying – fry in batches to maintain the oil temperature.

Mastering the Sauce Consistency
Add the corn flour slurry gradually, stirring constantly, until you reach your desired consistency. Remember, the sauce will thicken as it cools.

Preventing Paneer from Becoming Rubbery
Don’t overcook the paneer when frying. It should be golden brown and crispy, but still soft inside.

Balancing Sweet, Sour & Spicy Flavors
Taste as you go! Adjust the sugar, lemon juice, and green chillies to achieve the perfect balance for your palate.

Variations

Want to switch things up? Here are a few ideas:

Vegan Paneer Chilli (Tofu Substitution)
Swap the paneer for firm or extra-firm tofu, pressed to remove excess water. Follow the same battering and frying instructions.

Gluten-Free Paneer Chilli (Alternative Flours)
Use a gluten-free all-purpose flour blend and rice flour instead of corn flour.

Spice Level Adjustments (Mild, Medium, Hot)
Adjust the number of green chillies and add a pinch of red chilli powder for extra heat.

Festival Adaptations (Navratri-Friendly Version)
Skip the all-purpose flour and use singhara (water chestnut) flour and kuttu (buckwheat) flour for a Navratri-friendly version.

Dry vs. Gravy Paneer Chilli
For a drier version, reduce the amount of water used in the sauce.

Serving Suggestions

Paneer Chilli is fantastic on its own as a starter or snack. But it also pairs beautifully with fried rice or noodles. A side of refreshing cucumber raita can help cool things down if you’ve gone heavy on the spice!

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 may lose some of its crispness upon reheating.

FAQs

What type of paneer is best for Paneer Chilli?
Fresh paneer is ideal, but frozen paneer works too – just make sure to thaw it properly.

Can I make this recipe ahead of time?
You can prepare the sauce ahead of time and store it in the refrigerator. Fry the paneer just before serving to maintain its crispness.

How can I adjust the spice level of this dish?
Adjust the number of green chillies and add red chilli powder to increase the heat.

What is the best way to prevent the paneer from sticking together?
Make sure the oil is hot enough before adding the paneer, and don’t overcrowd the pan.

Can I bake the paneer instead of frying it?
Yes, you can! Bake the battered paneer at 200°C (390°F) for about 15-20 minutes, flipping halfway through. It won’t be as crispy as fried paneer, but it’s a healthier option.

What side dishes complement Paneer Chilli well?
Fried rice, noodles, or a cooling raita are all great choices.

Enjoy making this delicious Paneer Chilli! I hope it becomes a favourite in your home too. Let me know in the comments how it turns out for you!