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

Last Updated on 2 months by Neha Deshmukh

Paneer Chilli Recipe – Spicy 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 perfect balance of sweet, sour, and spicy. And honestly, nothing beats a vibrant plate of Paneer Chilli! I first made this when I was craving something flavorful and quick, and it’s been a family favourite ever since. 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. The paneer gets beautifully crispy, and the sauce is bursting with flavour. Plus, it’s a fantastic way to impress your friends and family with a restaurant-quality dish, made right in your own kitchen! It serves 3 people and takes around 30 minutes to cook, with just 10 minutes of prep time. It’s a medium difficulty recipe, but trust me, it’s totally achievable.

Ingredients

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

• 1.5 cup Paneer, cubed
• 1 Capsicum (Bell Pepper), chopped
• 1 Onion, chopped
• 2 Sprigs Spring onion, chopped
• 1 Large variety chilli, sliced diagonally
• 1 teaspoon Black pepper powder
• 1 tablespoon Chilli tomato sauce
• 1.5 tablespoon Soya sauce
• 1 teaspoon white Vinegar
• 1 tablespoon Garlic, finely chopped
• 1 tablespoon Ginger, finely chopped
• 1 tablespoon Corn flour
• 2 tablespoon Coriander leaves, chopped
• 3 tablespoon Oil
• Salt, to taste
• 2 tablespoon All purpose flour
• 1 tablespoon Rice flour
• 1 tablespoon Corn flour
• ?? teaspoon Black pepper powder (for batter)

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 the best texture. If you’re using frozen, make sure to thaw it completely and gently squeeze out any excess water.

Capsicum: Colour & Texture Variations
You can use any colour capsicum you like – green, red, or yellow. I often mix them up for a more vibrant dish!

Chilli: Heat Levels & Regional Preferences
The type of chilli you use will determine the spice level. Green chillies are milder, while red chillies pack more heat. Adjust to your preference!

Soya Sauce: Types & Sodium Content
I usually use regular soya sauce, but you can opt for low-sodium if you’re watching your salt intake.

Spices: The Blend of Pepper & Flavour
Freshly ground black pepper really elevates the flavour. Don’t skimp on it!

Oils: Best Oils for Deep Frying & Stir-Frying
For deep frying, I recommend using vegetable oil or canola oil. For stir-frying, peanut oil or sunflower oil work well.

Step-By-Step Instructions

Alright, let’s get cooking!

1. First, let’s prep our veggies. Chop the capsicum, onion, and spring onions. Slice the large chilli diagonally. Finely chop the ginger and garlic.
2. Now for the paneer! In a bowl, mix together the all-purpose flour, rice flour, corn flour, pepper powder, and salt. Coat the paneer cubes in this mixture, ensuring they’re evenly covered.
3. Heat oil in a deep frying pan. Carefully fry the paneer until it’s golden brown and crispy. Drain on paper towels and set aside.
4. In a separate pan, heat a tablespoon of oil. Sauté the ginger, garlic, onions, capsicum, and chilli on high flame for about a minute – you want them to stay nice and crunchy.
5. Add the soya sauce, chilli tomato sauce, vinegar, and pepper powder. Stir for about 30 seconds until everything is well combined.
6. Pour in 1 ½ cups of water and bring to a boil. Gently add the fried paneer cubes to the gravy.
7. In a small bowl, mix the corn flour with 3 tablespoons of water to create a slurry. Add this to the gravy while stirring continuously. This will thicken the sauce beautifully.
8. Finally, garnish with fresh coriander leaves and spring onion greens. Serve hot with fried rice or noodles!

Expert Tips

Here are a few tricks I’ve learned over the years to make this Paneer Chilli absolutely perfect:

Achieving the Perfect Crispy Paneer
Make sure the oil is hot enough before adding the paneer. Don’t overcrowd the pan, or the paneer won’t get crispy.

Balancing the Sweet, Sour & Spicy Flavours
Taste the sauce as you go and adjust the soya sauce, vinegar, and chilli tomato sauce to your liking.

Preventing the Gravy from Becoming Too Watery
Adding the corn flour slurry gradually and stirring constantly is key to a thick, glossy gravy.

Variations

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

Vegan Paneer Chilli (Tofu Adaptation)
Swap the paneer for firm or extra-firm tofu, pressed to remove excess water. Follow the same coating and frying instructions. My friend, Priya, swears by this version!

Gluten-Free Paneer Chilli (Alternative Flours)
Use a gluten-free all-purpose flour blend for the coating. Rice flour and potato starch also work well.

Spice Level Adjustments (Mild to Extra Spicy)
Reduce or omit the chilli for a milder flavour. Add a pinch of cayenne pepper or a finely chopped bird’s eye chilli for extra heat.

Festival Adaptations (Serving during celebrations)
During festivals, I sometimes add a touch of kasuri methi (dried fenugreek leaves) to the gravy for a more aromatic flavour.

Serving Suggestions

Pairing with Fried Rice & Noodles
Paneer Chilli is amazing with a side of classic fried rice or Hakka noodles.

Accompaniments & Side Dishes
A simple cucumber and tomato salad adds a refreshing contrast to the spicy chilli.

Storage Instructions

Storing Leftover Paneer Chilli
Leftover Paneer Chilli can be stored in an airtight container in the refrigerator for up to 2 days.

Reheating Instructions
Reheat gently in a pan or microwave. You may need to add a splash of water to loosen the gravy.

FAQs

What type of paneer is best for chilli paneer?
Fresh paneer is best! It holds its shape well and has a lovely texture.

Can I make this recipe ahead of time?
You can prep the veggies and make the sauce ahead of time. Fry the paneer just before serving for maximum crispiness.

How can I adjust the spice level?
Adjust the amount of chilli you use, or add a pinch of cayenne pepper for extra heat.

What is the best way to prevent the paneer from becoming rubbery?
Don’t overcook the paneer! Fry it until it’s golden brown and crispy, but not for too long.

Can I use a different type of chilli?
Absolutely! Feel free to experiment with different chillies to find your perfect level of heat.

Is it possible to bake the paneer instead of frying it?
Yes, you can bake the paneer at 200°C (392°F) for about 15-20 minutes, flipping halfway through. It won’t be as crispy as fried paneer, but it’s a healthier option.

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