Paneer Chilli Recipe – Indo-Chinese Fried Paneer with Chilli Sauce

Last Updated on 2 months by Neha Deshmukh

Paneer Chilli Recipe – Indo-Chinese Fried Paneer with Chilli Sauce

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 recipe years ago, trying to recreate my favourite takeaway, and it’s been a family favourite ever since! It’s surprisingly easy to make at home, and trust me, it tastes even better.

Why You’ll Love This Recipe

This Paneer Chilli recipe is a winner for so many reasons. It’s quick – ready in about 45 minutes including prep. It’s flavourful – that perfect balance of sweet, spicy, and savoury. And it’s adaptable – you can easily adjust the spice level to suit your taste. Plus, it’s a fantastic way to enjoy paneer, a classic Indian cheese, with a fun, fusion twist.

Ingredients

Here’s what you’ll need to whip up this deliciousness:

• 200 grams paneer
• 2 medium onions
• 1 green chilli, slit
• ½ teaspoon ginger garlic paste
• 1 capsicum (bell pepper)
• 1 tablespoon soya sauce
• 1 teaspoon chilli sauce
• 1.5 teaspoon tomato ketchup
• 1 tablespoon oil
• Oil for shallow frying
• Spring onion greens, for garnish
• 1.5 tablespoon cornflour
• 2 teaspoon all-purpose flour (maida)
• ¼ teaspoon pepper powder
• Salt, to taste

Ingredient Notes

Let’s talk ingredients for a sec! The quality of your paneer really matters. I prefer using fresh, soft paneer – it holds its shape well and absorbs the marinade beautifully. You can find it at most Indian grocery stores.

Now, about those sauces… the soya sauce, chilli sauce, and tomato ketchup are the heart of that classic Indo-Chinese flavour. I like to use a medium-spicy chilli sauce, but feel free to adjust based on your preference. Some people prefer a sweeter chilli sauce, while others like it fiery hot! It really comes down to what you enjoy. Don’t be afraid to experiment!

And a little tip: don’t skimp on the ginger-garlic paste – it adds so much flavour.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, let’s make the marinade. In a bowl, mix together the cornflour, ½ teaspoon ginger garlic paste, salt, and pepper powder with a little water to form a smooth paste.
2. Now, coat the paneer cubes with this marinade, then sprinkle with maida and mix well. Make sure each piece is nicely coated! Let this marinate for 20-30 minutes. This helps the paneer get nice and crispy.
3. Heat oil in a pan for shallow frying. Gently fry the marinated paneer until it’s golden brown and crispy. Set aside on a paper towel to drain any excess oil.
4. In a separate pan, heat 1 tablespoon of oil. Sauté the onions and slit green chilli until they become translucent.
5. Add the remaining ½ teaspoon ginger garlic paste and sauté for another minute until fragrant.
6. Now, add the capsicum, soya sauce, chilli sauce, tomato ketchup, and salt. Stir-fry everything on high heat for 2-3 minutes. You want the sauce to thicken slightly.
7. Reduce the heat to medium, add the fried paneer, and toss gently to coat it evenly with the sauce.
8. Finally, garnish with fresh spring onion greens and serve hot!

Expert Tips

• Don’t overcrowd the pan when frying the paneer. Fry in batches to ensure even cooking and crispiness.
• For a richer flavour, you can add a pinch of MSG (optional, of course!).
• If the sauce is too thick, add a splash of water to thin it out.
• If it’s too thin, simmer for a few more minutes to reduce it.

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 marinating and frying instructions. My friend, Sarah, swears by this version!
• Gluten-Free Paneer Chilli (Cornflour/Rice Flour Blend): Replace the maida with a blend of cornflour and rice flour for a gluten-free option. A 1:1 ratio works well.
• Spice Level Adjustments (Mild, Medium, Hot): Control the heat by adjusting the amount of chilli sauce. For mild, use ½ teaspoon. For hot, use 1.5 – 2 teaspoons, or add a pinch of red chilli powder.
• Festival Adaptations (Adaptations for Chinese New Year or Diwali snacks): Serve smaller portions as appetizers during festive gatherings. A colourful presentation always adds to the festive spirit!

Serving Suggestions

Paneer Chilli is fantastic on its own as a starter or snack. But it also pairs beautifully with:

• Fried rice
• Hakka noodles
• Manchurian
• A simple side 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, but it will still be delicious!

FAQs

What type of paneer works best for Paneer Chilli?

Fresh, soft paneer is ideal. It holds its shape well and absorbs the marinade beautifully.

Can I make this recipe ahead of time?

You can marinate the paneer ahead of time (up to a day) and store it in the refrigerator. However, it’s best to fry the paneer and assemble the dish just before serving for optimal crispiness.

How can I adjust the sweetness in the chilli sauce?

If you find the chilli sauce too sweet, add a squeeze of lemon juice or a dash of vinegar to balance the flavours.

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

Don’t over-marinate the paneer, and don’t overcook it when frying. Shallow frying is better than deep frying for this reason.

Can I bake the paneer instead of frying it?

Yes, you can! Preheat your oven to 200°C (390°F). Place the marinated paneer on a baking sheet lined with parchment paper and bake for 15-20 minutes, flipping halfway through, until golden brown. It won’t be quite as crispy as fried paneer, but it’s a healthier option.

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