I  have been trying to get a solid recipe down for restaurant style chili paneer for quite some time now. I’ve tried this recipe with so many variations, trying to make some of the steps quicker or easier and this is the final version I’m sharing with you today- and I couldn’t be more excited!

This recipe might feel like a bit of a process so I’ve tried to break the steps down into manageable sections which should help you prep! I  highly suggest getting all of the ingredients, chopping, measuring done and out of the way and then the rest of it should be quite easy!

Let’s also take a moment to talk about Sach Foods Paneer! It is USDA organic and delivered right to your door step! It’s delicious as is, thrown in the air fryer, in curries, or obviously in this chili paneer!

Hot to Prep Chili Paneer:

  1. Soak the red chilis and make the red chili paste first.
  2. Do All the Chopping. Cut the paneer, the onions & peppers, cilantro & scallion garnish, and get the garlic, ginger grated and set everything up.
  3. Make the sauce and set it aside and make the corn starch mixture
  4. Fry the Paneer
  5. Lastly make the gravy  and serve!

My Favorite Asian Inspired Recipes to Serve with Chili Paneer:

Hakka Noodles // Broccoli & Edamame Fried Rice // Gochujang Noodles // Vegetable Potstickers

Sauces Used in Chili Paneer:

I  switched over to using “Dark Soy Sauce” versus the normal stuff you buy at grocery stores a long time ago because the depth of flavor is so much more prominent and it also adds a great color to dishes. Dark Soy sauce is also thicker than regular soy sauce so it makes for a better consistency when used in sauces.I also use Chili Garlic Sauce // Rice Vinegar !

I  hope you all enjoy this recipe and as always, be sure to tag me on @thechutneylife so I  can see all of your wonderful creations!! Happy Eating <3


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Chili Paneer





12 oz paneer, cut into small cubes

1/4 cup all purpose flour

1/4 cup corn starch

1/2 tsp salt

1/2 tsp black pepper

1/2 cup water

1/3 cup green bell pepper, diced into medium size cubes

1/3 cup red bell pepper, diced into medium size cubes

1/3 cup red onion, diced into medium size cubes

1 tbsp minced garlic

1 tsp ginger, grated

sliced white and pale green parts from 3 scallions

1/4 cup cilantro, finely diced

1/4 cup scallions, finely sliced (green parts only, use the white and light green parts for chili paste)

Corn Starch Slurry:

Mix well until no lumps, and set aside

1 tbsp corn starch +2 tbsp water

Chili Paste:

4 dried red chilis, soaked in hot water for atleast an hour or upto 3 hours

1 inch piece ginger, peeled

6 cloves of garlic


Combine all of the ingredients in a bowl and set aside:

2 tbsp soy dark soy sauce

1 tbsp ketchup

1 tsp sugar

1/4 tsp white pepper

1/4 tsp salt

1 tsp rice wine vinegar or regular vinegar

2 tsp chili garlic sauce


Make the chili paste:

  1. Take the soaked red chilis (reserve the water), garlic cloves, ginger, and blend (ideally in a small blender jar) until smooth. Add 1-2 tbsp of water at a time, just enough to help get the paste smooth and moving in the jar. Set aside.

Make the sauce:

  1. Combine all of the ingredients listed under sauce and set aside.

Mix the batter for the paneer:

  1. Combine the all purpose flour, corn starch, salt, pepper and mix it well. Slowly add the 1/2 cup of water until you get a batter that is neither too thick nor too thin. Add the paneer cubes and coat them well.
  2. Heat a small pot and fill it with about 2 inches of oil. Once the oil is hot, use a fork or spoon to individually scoop each cube of paneer into the hot batter Fry the paneer until it is golden brown. Drain on paper towels.

Make The Gravy:

  1. In a large skillet or wok, heat 2 tbsp of oil on medium low heat. Add the garlic, ginger, scallion whites and cook for 2-3 minutes until fragrant but not at all browned. 
  2. Turn the heat up slightly and add the diced onions and bell peppers, and saute until just slightly softened but still crisp. Add 1 tbsp of the chili paste and continue to cook for 2-3 minutes. Add more if you want more spice.
  3. Turn the heat to low and when the pan is no longer too hot, add the sauce, 1/2 cup of water and slowly bring it to a slow simmer . As it simmers, mix in the corn starch mixture slowly while stirring so it doesn't clump. If the gravy looks too thick, add a few tbsp of water at a time to get it to a consistency you prefer.
  4. Add the paneer, mix well and turn the heat off. Add the cilantro, scallions. Taste for salt, spice, heat and adjust. (you can add more sugar for sweetness, or 1-2 tsp of the chili paste for more spice)