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Paneer, green pepper, red chilies in skillet with sliced spring onions
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5 from 7 votes

Chilli Paneer Recipe (Restaurant-Style, Dry & Gravy)

This 25-minute Chilli Paneer is restaurant-style without deep frying — crispy paneer, peppers, and onions in an umami-packed sauce.
Prep Time10 minutes
Cook Time15 minutes
Total Time25 minutes
Course: Appetizer, Main Course
Cuisine: Asian, Indian
Diet: Gluten Free, Vegetarian
Servings: 4
Calories: 496kcal
Author: Aneesha Gupta

Equipment

Ingredients

Paneer Marinade

Stir-Fry

  • 3 tablespoons avocado oil or olive oil (used in different stages)
  • 1 tablespoon ginger finely chopped (about 1-inch piece)
  • 2 teaspoons garlic finely chopped (about 2-3 cloves)
  • 5-6 dried red chilies whole
  • 1 cup onion cut in 1-inch cubes and layers separated (about 1 medium onion)
  • 1 cup bell pepper green or any color, cut in 1-inch pieces
  • 2 tablespoons thinly sliced green tops of green onions for garnish

Sauce

Instructions

  • Marinate Paneer: Toss paneer cubes in soy sauce. Now add cornstarch and toss till it forms a thin batter with the soy sauce and coats the paneer pieces well.
    Paneer cubes tossed with seasoning and sauce for an easy chilli paneer recipe.
  • Pan-fry Paneer. Heat a skillet over medium-high heat. Add oil, then spread the paneer in a single layer. Cook for 2 minutes per side, until golden brown. Remove and set aside, then repeat with the remaining paneer.
    Paneer cubes being pan-fried until golden for homemade chilli paneer.
  • Sauté Aromatics. Heat the same skillet, add the remaining tablespoon of avocado oil and add chopped ginger, garlic and dried red chilies. Stir and sauté for 1 minute.
    Garlic, ginger, and dried red chilies sautéing in a pan for chilli paneer sauce.
  • Sauté veggies. Add the onion and peppers and stir-fry for 4-5 minutes, until the onions start to turn translucent but are still firm. Toss in the browned paneer pieces.
    Bell peppers and onions stir-fried with dried red chilies for chilli paneer.
  • Prepare Sauce. In a bowl, mix the sauce ingredients until the cornstarch (corn flour) is fully combined. Pour the sauce over paneer, onions, and peppers, and stir until it coats everything evenly and starts to thicken.
    Fried paneer cubes added to stir-fried vegetables with chilli paneer sauce.
  • Garnish & Serve. Turn off the heat when it reaches your desired thickness, about 2-3 minutes (see notes about making a dry version or gravy version). Garnish with sliced green onions.
    Homemade chilli paneer with bell peppers, onions, and scallions ready to serve.

Video

Notes

  • Use dark soy sauce for a richer flavor. For umami-packed results, I like to use dark soy sauce. It adds a nice, deep amber color and an intense flavor. If you only have regular soy sauce on hand, add another ½-1 Tablespoon depending on how salty you like your dish.
  • Alter the sauce to dry or gravy. This recipe results in a semi-dry dish, popularly known as 'Dry Chilli Paneer' in restaurants. To make more sauce, simply add ½ cup water or broth to the sauce mix and simmer for 2-3 minutes. 
  • A wonderful vegetarian recipe you can make gluten-free or vegan. Paneer is a great vegetarian adaptation of chili chicken. Simply use tamari instead of soy sauce for a gluten-free version.
  • Make this recipe Vegan by substituting paneer with extra-firm Tofu cut in bite-size pieces.
Note: The nutrition facts below are my estimates. If you follow any diet plan, I recommend cross-checking with your preferred nutrition calculator.

Nutrition

Calories: 496kcal | Carbohydrates: 25g | Protein: 18g | Fat: 37g | Saturated Fat: 16g | Polyunsaturated Fat: 2g | Monounsaturated Fat: 8g | Cholesterol: 65mg | Sodium: 1317mg | Potassium: 399mg | Fiber: 3g | Sugar: 9g | Vitamin A: 1771IU | Vitamin C: 133mg | Calcium: 507mg | Iron: 1mg