Chilli Paneer Recipe | Easy Restaurant-Style Indo-Chinese at Home

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Chilli Paneer Recipe: A Step-by-Step Guide to

Make Restaurant-Style Magic at Home

If you’ve ever sat in an Indian restaurant, scanning the menu for something tangy, spicy, and downright addictive, you’ve probably come across Chilli Paneer. This Indo-Chinese delight is a favorite for a reason—it combines the soft, creamy goodness of paneer with the bold flavors of garlic, green chilies, and soy sauce. And the best part? No need to step outside—you can enjoy it right at home. You can whip it up right in your kitchen, without losing that authentic restaurant vibe.

In this detailed guide, I’ll walk you through everything you need to know—from picking the right ingredients to plating it like a pro. So, roll up your sleeves, because your kitchen is about to smell amazing.

Close-up of homemade chilli paneer with crispy paneer cubes and vegetables in spicy sauce
Image Credit: Pixabay

What is Chilli Paneer?

Chilli Paneer is a popular Indo-Chinese dish that comes in three versions: dry, semi-dry, and gravy. Each has its charm:

  • Dry Chilli Paneer – Perfect as a starter or appetizer.

  • Semi-Dry Chilli Paneer goes really well

  • Gravy Chilli Paneer – Works beautifully with steamed rice or Hakka noodles.

It’s essentially cubes of paneer tossed in a spicy, tangy sauce made with soy sauce, vinegar, chili sauce, and plenty of aromatic vegetables.

Why You’ll Love This Recipe

  • Easy and fast – done in less than half an hour.

  • Versatile – Adjust the spice level to suit your taste.

  • Restaurant-Style at Home – No more paying extra for takeout.

  • Vegetarian & Protein-Packed – Great for a satisfying meal without meat.

Ingredients You’ll Need

Before you dive into cooking, let’s break down the essential ingredients.

For the Paneer

  • Paneer – 250g, cut into cubes

  • Cornflour – 3 tbsp

  • All-purpose flour – 2 tbsp

  • Salt – to taste

  • Black pepper – ½ tsp

  • Water – as needed

  • Oil – for shallow or deep frying

For the Sauce

  • Oil – 2 tbsp

  • Garlic – 1 tbsp, finely chopped

  • Ginger – 1 tbsp, finely chopped

  • Green chilies – 2, slit

  • Onion – 1 large, diced into petals

  • Capsicum – 1 large, diced

  • Soy sauce – 1 tbsp

  • Red chili sauce – 1 tbsp

  • Tomato ketchup – 1 tbsp

  • Vinegar – 1 tsp

  • Cornflour slurry – 1 tbsp cornflour mixed in 3 tbsp water

  • Spring onions – for garnish

  • Salt & pepper – to taste

Choosing the Best Paneer

Think of paneer as the star actor—it has to be fresh and soft to shine. Store-bought paneer is convenient, but freshly made paneer truly transforms the dish. If you buy packaged paneer, soak it in warm water for 10–15 minutes before using to keep it soft and melt-in-your-mouth.

Step-by-Step Recipe

Step 1: Coat and Fry the Paneer

  1. In a bowl, mix cornflour, all-purpose flour, salt, and pepper.

  2. Slowly pour in some water while stirring until the batter becomes smooth.

  3. Dip each paneer cube deeply into the batter, making sure all sides are evenly covered.

  4. Shallow fry or deep fry until golden brown.

  5. Place them on a paper towel to soak up the leftover oil.

Step 2: Prepare the Sauce Base

  1. Gently heat 2 tablespoons  and use sim flame 

  2. Add chopped garlic, ginger, and slit green chilies.

  3. Sauté on high heat for 30 seconds until aromatic.

  4. Add onion and capsicum; stir-fry for 2–3 minutes to retain crunch.

Step 3: Add the Sauces

  1. Lower the heat slightly.

  2. Add soy sauce, chili sauce, ketchup, and vinegar.

  3. Mix well, keeping that wok sizzle alive.

Step 4: Thicken the Sauce

  1. Pour in the cornflour slurry.

  2. Stir until the sauce slightly thickens.

  3. Adjust salt and pepper to taste.

Step 5: Toss in the Paneer

  1. Add fried paneer cubes to the sauce.

  2. Toss quickly on high heat so the sauce coats each piece.

  3. Garnish with chopped spring onions.

Different Styles of Chilli Paneer and the Best Occasions to Try Them

Dry Chilli Paneer

Perfect for parties or as a side snack. Just reduce the sauce quantity and stir-fry on high flame until almost dry.

Semi-Dry Chilli Paneer

Keep some sauce clinging to the paneer—ideal for pairing with fried rice.

Gravy Chilli Paneer

Add extra water or vegetable stock to make it saucier. Great with steamed rice or noodles.

Tips for Restaurant-Style Perfection

  • Cook on high heat when stir-frying to keep the vegetables nice and crisp.

  • Always toss the paneer just before serving to prevent it from becoming soggy.

  • Adjust sauce ratios for a personal flavor twist.

  • A splash of sesame oil can add that authentic Asian aroma.

Common Mistakes to Avoid

  • Overcooking Paneer – It becomes rubbery. Keep it short and quick.

  • Using too much salt early – Remember, soy sauce already has salt.

  • Skipping the Cornflour Slurry – It’s key to that glossy restaurant look.

Pairing Ideas

  • Fried Rice

  • Hakka Noodles

  • Steamed Jasmine Rice

  • Veg Manchurian

Storage and Reheating

Chilli Paneer tastes best fresh, but you can refrigerate it for up to 24 hours. Warm it up on the stove with a little water to restore the sauce’s texture. Avoid microwaving—it can dry out the paneer.

Healthier Alternatives

  • Air Fryer Paneer – Skip deep frying; air fry at 180°C for 10 minutes.

  • Less Oil, Same Flavor – Stir-fry paneer directly without batter.

  • Add More Veggies – Broccoli, mushrooms, or baby corn fit right in.

Why This Dish Wins Hearts

Chilli Paneer is more than just food—it’s nostalgia for many who grew up in India, a comfort dish for students living abroad, and a flavor bomb for spice lovers everywhere. The balance of textures—the crispy paneer outside, soft inside, crunchy veggies, and saucy coating—is pure magic.

Conclusion

Whether you make it dry, semi-dry, or with gravy, Chilli Paneer has the power to light up your table and your taste buds. With this step-by-step recipe, you can recreate that sizzling, spicy restaurant experience right in your kitchen. Next time you’re craving Indo-Chinese, skip the takeout and let your wok do the talking.

FAQs

1. Can I make Chilli Paneer vegan?
Yes! Replace paneer with firm tofu—it stays firm and soaks up the sauce perfectly.

2. How do I make it less spicy?
Reduce the chili sauce and green chilies, and add more ketchup for sweetness.

3.Is it possible to bake the paneer instead of frying?
Absolutely—bake at 200°C for 12–15 minutes, flipping halfway.

4. What’s the difference between Chilli Paneer and Paneer Manchurian?
Chilli Paneer is more chili-forward with stronger soy flavors, while Paneer Manchurian has a tangy, slightly sweet sauce.

5. How do I get that glossy restaurant-style sauce?
The secret is the cornflour slurry and cooking it on high heat without over-stirring.

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