Paneer Chilli Recipe – Indo-Chinese Fried Paneer with Capsicum

Last Updated on 2 months by Neha Deshmukh

Paneer Chilli Recipe – Indo-Chinese Fried Paneer with 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 cooked Paneer Chilli! I first made this when I was craving something comforting and a little bit different, and it’s been a family favourite ever since. 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 Chilli recipe is a winner for so many reasons! It’s quick – ready in under 30 minutes. It’s packed with flavour – that perfect balance of sweet, sour, and spicy. Plus, it’s a fantastic way to enjoy paneer, a classic Indian cheese, in a totally new way. It’s a guaranteed crowd-pleaser, whether you’re cooking for family or entertaining friends.

Ingredients

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

• 200 grams paneer, cubed
• ¼ teaspoon salt (for paneer marination)
• ¼ teaspoon pepper powder (for paneer marination)
• 1 tablespoon rice flour (for coating)
• 3 tablespoons vegetable oil (for frying paneer)
• 2 tablespoons vegetable oil (for the sauce)
• 10 garlic cloves, minced
• 1 inch ginger, minced
• 1 onion, diced
• 1 green capsicum, diced
• 1 yellow or red capsicum, diced
• ½ teaspoon salt (for sauce)
• 1 teaspoon white pepper powder
• 1 teaspoon sugar
• 1 tablespoon soy sauce
• 2 tablespoons tomato ketchup
• 2 tablespoons chilli sauce
• 1 teaspoon vinegar
• 1 teaspoon corn starch
• 4 spring onions, chopped (for garnish)

Ingredient Notes

Let’s talk ingredients for a sec! A few little things can make a big difference.

• Rice Flour: I always use rice flour for coating the paneer. It gives it a super crispy texture that just holds the sauce beautifully. Cornflour works in a pinch, but rice flour is the secret weapon here!
• Capsicum Colours: I love using a mix of green, yellow, and red capsicum. It just makes the dish look so vibrant and appealing. Feel free to use whatever you have on hand, though!
• The Sauce Balance: The beauty of Indo-Chinese cuisine is that perfect balance of flavours. Don’t be afraid to adjust the soy sauce, chilli sauce, and vinegar to your liking. A little extra of one or the other can really make it your own.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, let’s prep the paneer. In a bowl, gently toss the paneer cubes with ¼ teaspoon of salt and ¼ teaspoon of pepper powder. Then, coat them evenly with the rice flour.
2. Heat 3 tablespoons of vegetable oil in a pan over medium heat. Carefully fry the paneer until it’s golden brown and crispy on all sides. Set it aside on a plate lined with paper towels to drain any excess oil.
3. Now for the sauce! Heat 2 tablespoons of vegetable oil in the same pan. Add the minced garlic and ginger, and sauté until fragrant – about 30 seconds. You want to smell that lovely aroma!
4. Add the diced onions and capsicum to the pan. Stir-fry on high heat for 3-4 minutes, until they’re slightly charred and tender-crisp.
5. Time for the flavour bomb! Add the soy sauce, chilli sauce, tomato ketchup, vinegar, white pepper powder, and sugar to the pan. Cook for about a minute, stirring constantly, until everything is well combined.
6. To thicken the sauce, prepare a corn starch slurry by mixing 1 teaspoon of corn starch with 2 tablespoons of water. Add this slurry to the pan and stir until the sauce thickens to your desired consistency.
7. Finally, toss the fried paneer into the sauce and coat it evenly. Garnish with chopped spring onions and serve immediately!

Expert Tips

• Don’t overcrowd the pan when frying the paneer. Fry it in batches to ensure it gets crispy.
• For a richer flavour, you can marinate the paneer for 15-20 minutes before frying.
• Taste the sauce as you go and adjust the seasonings to your preference.

Variations

• My friend, Priya, loves adding a pinch of garam masala to the sauce for an extra layer of warmth.
• For a bit of crunch, add some fried cashew nuts along with the paneer.
• You can also add other vegetables like carrots, beans, or mushrooms to the stir-fry.

Vegan Adaptation

Want to make this vegan? Simply substitute the paneer with firm or extra-firm tofu, pressed to remove excess water and cubed. Follow the same coating and frying instructions as with the paneer.

Gluten-Free Adaptation

This recipe is already pretty close to gluten-free! Just double-check that your soy sauce is gluten-free. Tamari is a great gluten-free alternative.

Spice Level Adjustment (Mild, Medium, Hot)

• Mild: Reduce the amount of chilli sauce to 1 tablespoon.
• Medium: Use the recipe as written.
• Hot: Add ½ – 1 teaspoon of red chilli powder or a finely chopped green chilli to the sauce.

Festival Adaptations (Adaptations for Chinese New Year or Diwali snacks)

This is a fantastic snack for Diwali! It’s always a hit at our celebrations. For Chinese New Year, you could serve it as part of a larger Indo-Chinese spread.

Serving Suggestions

Serve Paneer Chilli hot, as an appetizer or a side dish. It pairs perfectly with fried rice or noodles. A simple cucumber raita can also provide a cooling contrast to the spicy flavours.

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. Be aware that the paneer may lose some of its crispness upon reheating.

FAQs

What type of paneer works best for Paneer Chilli?

I recommend using fresh, soft paneer. It holds its shape well during frying and absorbs the flavours of the sauce beautifully.

Can I make this recipe without using capsicum? What can I substitute?

Absolutely! You can substitute the capsicum with other vegetables like broccoli, cauliflower, or carrots.

How can I adjust the sweetness/sourness of the sauce?

Add a little more sugar for sweetness or a splash more vinegar for sourness. Taste as you go!

What is the best way to prevent the paneer from becoming rubbery?

Don’t overcook the paneer! Fry it just until it’s golden brown and crispy. Also, avoid adding it to the hot sauce too early.

Can this be made ahead of time? How should I store it?

You can prep the ingredients (chop vegetables, cube paneer, make the slurry) ahead of time. Store them separately in airtight containers in the refrigerator. It’s best to cook the dish just before serving for the best texture.