Restaurant Style Chilli Paneer Recipe

Chilli Paneer is a beloved dish in the world of Indo-Chinese cuisine! It consists of crispy fried paneer pieces coated in a flavorful mix of spices, green capsicum, garlic, ginger, green chillies, soy sauce, and more.

There are three ways to make this dish – dry, semi-dry, or with gravy. Today, I’ll be sharing the semi-dry variant, commonly found in restaurants. I’ll guide you through the process with easy-to-follow step-by-step photos and videos.

Chilli Paneer

What is Chilli Paneer

Chilli Paneer – a delicious Indo-Chinese dish

Chilli Paneer is a famous Indo-Chinese dish which is loved by many people. Don’t worry if you are new to cooking, because the recipe for chilli paneer is simple and easy to follow. First of all, wrap the paneer pieces in cornstarch-flour mixture and fry them until they become crispy. Then, saute garlic, ginger, onion, capsicum and green onion to make a delicious chilli chutney. Finish the dish by combining red chili sauce, soy sauce, and vinegar to create a delicious sauce. Enjoy this dish with rice or noodles for a satisfactory meal. For best results I highly recommend using homemade cottage paneer!

As the name suggests, chilli paneer is filled with various forms of chillies, such as green chillies, red chilli sauce, green chilli sauce and red chilli powder. Like Paneer Butter Masala, it is a popular dish liked all over the world.

Whether you like your chilli paneer dry, in gravy, or semi-gravy, the recipe and ingredients remain the same. Simply adjust the amount of water added to achieve your desired consistency.

Read Also: Vegetable Rava Upma Recipe: A Delicious and Healthy Meal Option

Chile Paneer can be served in various delicious ways:

A dry version of chilli paneer is commonly enjoyed as a delightful starter.

The gravy version of this dish is typically served alongside steamed rice or noodles, making for a delectable meal.

The semi-dry variation is versatile and can be savored either as an appetizer or an entree. In my opinion, it boasts the most authentic restaurant-style flavor and taste among the three options mentioned.


For the Marinade:

  • 200-250 gms paneer, cubed (approximately 1-inch cubes)
  • 1 tablespoon cornstarch
  • 2 tablespoons soy sauce
  • 1 tablespoon rice vinegar
  • 1/2 teaspoon ginger-garlic paste
  • 1/4 teaspoon red chili powder
  • 1/4 teaspoon black pepper powder
  • Salt to taste

For the Sauce:

  • 2 tablespoons oil (neutral like vegetable or canola)
  • 1 medium onion, finely chopped
  • 1-2 green chilies, chopped (adjust to your spice preference)
  • 1 bell pepper, diced (optional)
  • 1-2 cloves garlic, minced
  • 1 inch ginger, minced
  • 1 tablespoon tomato ketchup
  • 1 tablespoon green chili sauce
  • 1/2 teaspoon red chili powder
  • 1/2 teaspoon coriander powder
  • 1/4 teaspoon cumin powder
  • 1/4 teaspoon turmeric powder
  • 1/4 cup vegetable broth or water
  • 1 tablespoon cornstarch mixed with 2 tablespoons water (slurry)
  • Salt to taste
  • Sugar to taste (optional, balances the flavors)

For Garnishing:

  • Chopped fresh coriander leaves
  • Sliced green chilies (optional)

Detail of Ingredients for Chilli Paneer

Paneer – Paneer has a mild, milky flavor that complements the robust, spicy taste found in many traditional Indian dishes. Because it doesn’t melt like other things, its pieces can be added to soup or curry and kept whole. I used homemade paneer.

Plain flour and cornstarch – Paneer is typically coated in a mixture of plain flour and cornstarch before frying. The combination of plain flour and cornstarch usually creates a coating.

Ginger and garlic – Finely chopped ginger and garlic are added at the beginning to enhance the taste of the oil and add flavor and aroma.

Onions – Onions are diced, and the bulb is removed separately. If you don’t want the onions to remain whole, you can finely chop them.

Bell peppers – Adding green bell peppers to chili paneer adds a crispy taste and color to the dish. Make sure you’ve chopped them into cubes.

Spices – Chili powder and black pepper powder add spiciness to chili paneer.

Seasoning – To season chili paneer, salt, sugar, and monosodium glutamate (optional) are used.

Chinese sauce – To make chili paneer, you need various types of Chinese sauce. Soy sauce, red chili sauce, green chili sauce, tomato ketchup, and vinegar are used for flavor and aroma.

Green onions – One of the main ingredients used for garnishing. It adds a mild onion flavor to the dish.

Step by Step process for Making Chilli Paneer

In a bowl, mix the cornstarch, all-purpose flour, ginger-garlic paste, red chili powder, salt, and enough water to make a thick batter. Add the paneer cubes and coat them well. Set aside for 15-20 minutes.


Heat oil in a pan over medium heat. Add the marinated paneer cubes and fry until they are golden brown. Remove them from the pan and set aside.


In the same pan, add a little more oil if needed. Add the chopped onion, diced bell pepper, and sliced green chilies. Sauté until the vegetables are slightly softened.


Add the ginger-garlic paste and sauté for another minute.

Add soy sauce, red chili sauce, green chili sauce, tomato ketchup, vinegar, sugar, salt, and water. Mix well and bring to a simmer.


Add the cornstarch-water mixture and stir continuously until the sauce thickens.

Add the fried paneer cubes to the sauce and toss to coat them evenly.

Garnish with chopped spring onions.

Serve hot as a starter or with fried rice or noodles. Enjoy your Chilli Paneer!

chilli paneer

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