|June 21, 2022


Everyone loves Chinese food. Coming to Indo-Chinese vegetarian options, Chilli paneer is one of the best comfort foods whenever we crave Chinese food take-outs. Not only does the dish taste delicious, but the chilli paneer recipe also is great because:

  • It's a lighter, healthier version of the traditionally battered, deep-fried chilli paneer.
  • It makes for a completely satisfying vegetarian meal. 
  • You can enjoy Chilli Paneer gravy with vegetable chowmein. You can even have it with steamed rice for a complete meal.
  • You can stuff lettuce cups with Paneer Chilli dry and enjoy a delicious low-carb meal!
  • The dish uses a high-heat stir-fry technique. This means you'll get it from the oven to your table in just 25 minutes!
  • Two sauce variations give you maximum flexibility – you can serve it either as an appetizer or a main meal.

How to make Chilli Paneer at home

This is how you make Chilli Paneer with Stir-Fried Onions and Peppers:

The ingredients required for chilli paneer are a mix of staple items in both Indian and Chinese cuisines. These are easily found in all supermarkets or local grocery stores.

  • Paneer - Paneer is a fresh, non-melting cheese. It's prevalent in Indian vegetarian cuisine. You can easily make it at home or buy it at any supermarket. 
  • Vegetables - Use red or white onion. Green pepper is best for this chilli paneer recipe, but you can use other peppers as per your preferences. Cut the pepper into 1-inch chunks. Separate the layers of the onion for stir-frying.
  • Aromatics - Using ginger, garlic, and spring onions gives chilli paneer a delicious aroma. Mince both ginger and garlic for an authentic texture.
  • Soy Sauce - Use Dark soy sauce. It's subtly sweet and thicker than regular soy sauce. It's also less salty. This intensifies that typical savory flavor everybody craves and creates a richer and deeper sauce. It is available in most grocery stores.
  • Corn Starch - Corn starch makes the paneer cubes lighter and crisper. You can also use the following instead of corn starch, for the same results:
    • Rice flour
    • Potato starch
    • Tapioca starch
    • Arrowroot flour
  • Dried Red Chilies - You can get these at all Supermarkets in India.
  • Vinegar - Vinegar is a popular ingredient in Asian cooking because of its mild acidity and sweetness. Do not purchase seasoned rice vinegar that is usually flavored with sugar or corn syrup. It also contains added salt or MSG, so avoid it.

Now, if you're in a rush and need more time to work with each of the above ingredients, you can use Alco's Paneer Chili Mix Gravy to make instant paneer chilli masala. Just mix with water, cook with paneer, and serve. That's all!

Chilli Paneer (Dry & Gravy)

This easy Chilli Paneer recipe has crispy paneer cubes. They're stir-fried with crunchy onions and peppers in a spicy sauce.


 Chilli paneer is one of the best comfort foods whenever we crave Chinese food take-outs. Not only does the dish taste delicious, but the chilli paneer recipe also is simple.

Print Recipe
  • Prep Time - 10 mins 
  • Cook Time - 15 mins 
  • Total Time - 25 mins 
  • Course - Appetizer, Main Course 
  • Cuisine - Asian, Indian 
  • Servings - 4 
  • Calories - 515 kcal


For the Paneer Marinade

  • 2 cups - Paneer cut into ¾-inch cubes
  • 2 tbsps - Soy sauce
  • 3 tbsps - Cornstarch

For Stir-Frying

  • 3 tbsps - Oil (you'll need this in different stages of preparation)
  • 1 tbsp - Ginger, finely chopped (around 1-inch pieces)
  • 2 tsp - Garlic, finely chopped (2-3 cloves)
  • 5-6 - Whole dried red chilies
  • 1 cup - Onion (cut into 1-inch cubes with layers separated)
  • 1 cup - Red or green bell pepper (cut into 1-inch pieces)
  • 2 tbsps - Thinly sliced green tops of spring onions (for garnishing)

For the Sauce

  • 2 tbsps - Dark soy sauce 
  • 1 tbsps - Vinegar
  • 2 tbsps - Ketchup
  • 1 tbsp - Chili garlic sauce
  • ¼ tsp - Ground pepper
  • 1 tsp - Oil
  • 1 tbsp - Cornstarch 

Cooking Instructions

  1. Marinate the paneer first. Toss your paneer cubes in soy sauce.
  2. Add cornstarch and toss till it forms a thin batter with the soy sauce. The sauce should coat the paneer pieces well.

For Stir-Frying

  1. Heat a large skillet on medium-high heat 
  2. When the skillet becomes hot, add a tablespoon of oil.
  3. Add the paneer pieces in a single layer. Don't add too many pieces and crowd them.
  4. Let the paneer pieces brown for 2 minutes. Turn the cubes over using tongs. Brown them on the other side for 2 minutes.
  5. Remove from pan and keep aside. Repeat the process with the remaining paneer cubes.
  6. Heat the same skillet again. Now add the remaining tablespoon of oil. Also, add: Chopped ginger, Garlic and dried red chilies. Stir and sauté these for 1 minute.
  7. Add onion and peppers. Sauté for 4-5 minutes, till the onions start turning brownish and transparent but are still firm.
  8. Toss in the browned paneer pieces.

Completing with the sauce

  1. Mix all the ingredients for the sauce till the cornstarch is well combined. Pour the sauce over the paneer, peppers, and onion slices. Stir till the sauce coats everything completely and starts thickening.
  2. Turn off the heat when the consistency reaches your desired thickness (around 2-3 minutes).
  3. Garnish with sliced green onions.
  4. Serve warm with steamed rice or chowmein.

If you find the above cooking steps too daunting, or you're in a rush, don't worry. You can make equally (if not more!) delicious Paneer Chilli Masala with Alco's Paneer Chilli Gravy Mix. It gives instant mouthwatering paneer chilli gravy without you breaking into a sweat working with all the above ingredients.
Apart from Alco Paneer Chilli Gravy Mix, Alco Foods also offers you several other masalas and instant gravy mixes. Try our products and your food will turn out to be next level delicious!

FAQs on Paneer chilli Recipe

Who invented chilli paneer?
What is chilli paneer made of?
Is paneer chilli good for health?
Can we eat chilli paneer during weight loss?
Is chilli paneer junk food?