This quick & easy Chilli Paneer recipe features crispy paneer cubes stir-fried with crunchy onions, peppers and whole red chillies in an umami-packed sauce. It's a delicious Indo-Chinese dish ready in 25 minutes, best served with rice or noodles.
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Here is a recipe for restaurant-quality chilli paneer that's so easy to make at home. All you need is a handful of easily available ingredients for this quick stir-fry that's vegetarian and gluten-free.
The best part about this recipe is that a simple tweak in the sauce allows you to enjoy it as an appetizer or a weeknight meal.
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My family (especially hubby and I) love Chinese food. This chilli paneer is one of my go-to dishes whenever we're craving Chinese take-out. Not only does it taste delicious, but this recipe is great because:
- It's a lighter and healthier version of the traditionally battered and deep-fried chilli paneer.
- It makes for one satisfying vegetarian meal. Enjoy it with vegetable chow Mein or steamed rice for a complete meal.
- Serve it as stuffing for lettuce cups and enjoy a delicious low-carb meal!
- The high-heat stir-fry technique means I can get it on the table in only 25 minutes!
- Two sauce variations give me the flexibility to serve it as an appetizer or main meal.
Let's get started with this Easy Chilli Paneer with Stir-Fried Onions and Peppers!
Ingredients - Notes & Availability
The ingredients for chilli paneer are a mix of Indian and Chinese staples easily found in speciality markets or the global food section of most grocery stores.
Paneer: Paneer is a fresh, non-melting cheese popular in Indian cuisine. I make it at home using this easy homemade paneer recipe, or buy it at Indian food markets, Whole Foods, or Costco. My preferred brands include Verka, Haldiram, or Desi Paneer. Look for it in the dairy or freezer section (Note: If frozen, defrost overnight in the fridge or on the countertop in a bowl of cool water for 1-2 hours).
Vegetables: Use red or white onion. Green pepper is my preference in this recipe, but feel free to use other colors if you like. Cut both in 1-inch chunks. Separate the onion layers for stir-frying.
Aromatics: Ginger, garlic, and spring onions give this dish an aromatic flavor. Mince garlic and ginger for an authentic texture.
Soy Sauce: Dark soy sauce is thicker, slightly sweeter, and less salty than regular soy sauce. It is also aged longer. This intensifies that sought-after umami flavor and creates a deeper, richer sauce. It is available in most grocery stores in the Asian food section or online.
Corn Starch: As opposed to the traditional recipe which combines corn starch and all-purpose flour to coat the paneer cubes, I find just corn starch gets the job done with lighter and crisper results. Feel free to use rice flour, potato starch, tapioca starch, or arrowroot flour instead.
Dried Red Chilies: Supermarkets stock a decent selection of dried red chilies. I use the dried chilies marked as 'Asian' or 'Indian'.
Rice Vinegar: Rice vinegar is a popular ingredient in Asian cooking because of its mild acidity and sweetness. Look for white rice vinegar (sometimes labeled rice wine vinegar) in the global section of grocery stores. Do not purchase seasoned rice vinegar that is typically flavored with sugar or corn syrup, and salt or MSG.
Scroll to the recipe card for a detailed list of ingredients and quantities.
How to Make Chilli Paneer
There are a few sauce variations when it comes to making chilli paneer at home (which we will discuss in a bit), but the recipe written makes for a semi-dry consistency.
Season 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 (Pic 1).
Pan-fry Paneer: Heat the large skillet on medium-high heat. When hot, add a tablespoon of avocado oil and add the paneer pieces in a single layer without overcrowding them.
Let the paneer brown for 2 minutes, then flip the pieces using tongs and brown on the other side for 2 minutes. Remove the fried paneer and keep it aside. Repeat the process with the remaining paneer pieces (Pic 2).
Saute Aromatics: Heat the same skillet, add the remaining tablespoon of avocado oil and add chopped ginger, garlic and dried red chilies. Stir and saute for 1 minute (Pic 3).
Saute veggies: Add onion and peppers and saute for 4-5 minutes, until the onions start turning transparent but are still firm. Toss in the browned paneer pieces (Pic 4).
Prepare Sauce: In a small bowl, mix together the ingredients for the sauce until the cornstarch (corn flour) is well combined. Pour the sauce over paneer, onions, and peppers and stir till it coats everything well and starts thickening (Pic 5).
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 (Pic 6).
Serving Suggestions & Leftover Makeover
This semi-dry chilli paneer recipe can be served as an appetizer or meal.
To serve as an appetizer, simply serve it on a platter with cocktail picks. Or, pair it with vegetable chow mein, steamed Jasmine rice, or fried rice to sop up all those flavors and enjoy a hearty meal.
If we happen to have leftovers in the fridge (will keep in an airtight container for up to 4 days), we add it to whole wheat tortillas and create our own chilli paneer wrap for a quick grab-and-go meal.
Making the Gravy (Dry Paneer Chilli)
Traditional chilli paneer can be prepared either semi-dry or gravy. This recipe creates semi-dry chilli paneer, which is commonly referred to as Dry Paneer Chilli in restaurants. The quantity of sauce is just enough to coat the paneer, onions and peppers.
For chilli paneer gravy, add ½ cup water or broth to the sauce and whisk it in the sauce until well combined. Add this sauce mix as per recipe directions and simmer for 2-3 minutes. Adjust seasoning based on taste.
Recipe Tips & 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 make dry or with 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 chilli chicken. Simply use tamari instead of soy sauce for a gluten-free version. You can also substitute the paneer with extra-firm tofu to make it vegan.
- Make this recipe Vegan by substituting paneer with extra-firm Tofu cut in bite size pieces.
Frequently Asked Questions
Paneer chilli or chilli paneer is a popular Indo-Chinese dish in which cubes of paneer (Indian cottage cheese) are fried until crisp, then tossed with vegetables and an Asian-style sauce made from soy sauce, vinegar and whole chillies.
Indo-Chinese is a distinct cuisine formed through the adaptation of Chinese ingredients and cooking techniques combined with Indian ingredients and tastes. It is especially popular in the Northern part of India.
Yes, this homemade chilli paneer is healthy since it uses paneer that is stir-fried instead of deep-fried, and it's made with a small amount of good-for-you avocado oil and whole food ingredients without the use of MSG.
Paneer is an Indian firm cheese that is loaded with protein, healthy fats and is very low on carbs. It is excellent for a diabetic diet and for weight loss. Paneer is very versatile too, you can have it for snacks, appetizers or main course. However, since it's high in fat, it is important to watch the calorie intake.
The best way to dry the outer surface of the paneer is with cornstarch. The cornstarch basically acts like a sponge and soaks up any extra moisture.
Paneer gets rubbery if it's overcooked. If it is stir-fried at high heat for more than 10 minutes, it loses moisture and turns hard and rubbery. To prevent that, cook paneer on medium or medium-high heat for a short period of time.
More Chinese Inspired Dishes
📖 Recipe
Chilli Paneer (Dry & Gravy)
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Video
Equipment
Ingredients
Paneer Marinade
- 2 cups paneer cut in ¾-inch cubes (about 14-15 oz.)
- 2 tablespoons soy sauce
- 3 tablespoons cornstarch
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
- 2 tablespoons dark soy sauce (see notes)
- 1 tablespoon rice vinegar
- 2 tablespoons ketchup
- 1 tablespoon sambal oelek or chili garlic sauce
- ¼ teaspoon ground white pepper
- 1 teaspoon sesame oil
- 1 tablespoon cornstarch
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.
Stir-Fry
- Heat the large skillet on medium-high heat. When hot, add a tablespoon of avocado oil and add the paneer pieces in a single layer without overcrowding them. Let the paneer brown for 2 minutes, then flip the pieces using tongs and brown on the other side for 2 minutes. Remove from pan and keep aside. Repeat the process with the remaining paneer pieces.
- Heat the same skillet, add the remaining tablespoon of avocado oil and add chopped ginger, garlic and dried red chilies. Stir and saute for 1 minute.
- Add onion and peppers and saute for 4-5 minutes, until the onions start turning transparent but are still firm. Toss in the browned paneer pieces.
Finish with Sauce
- Mix together the ingredients for the sauce until the cornstarch is well combined. Pour the sauce over paneer, onion and peppers and stir till it coats everything well and starts thickening.
- Turn off the heat when it reaches your desired thickness, about 2-3 minutes (see notes about making a wet curry). Garnish with sliced green onions and serve warm with steamed rice or chow mein.
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 chilli 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.
Priya says
delicious!
Aneesha says
Thank you Priya ????????
Araavali Trails Palanpur says
really great work.
Aneesha says
Thank you!
arun sharma says
soo delicious
Aneesha says
Thank you!
Kathy says
I live in a small town where things are sometimes hard to find, So I have learned to do a LOT of substituting. The dry peppers, I have been all over town looking for some, and there are none to be had within a 75 mile radius. I wont order them from amazon, because 1) I will never use the amount I would have to order to make it worth my efforts before they eventually went bad. Even dried foods have a shelf life, as Im sure you know.
2) the shipping charge is almost more then the product. (I dont do a lot of amazon shopping, the prices are considerably higher then what I can get things for locally...usually)
SO my question is this: Can I substitute chili flakes and if so, how much do you think would be a good amount without overdoing it? Or could I just eliminate them all together?
Thank you
Aneesha says
Hi Kathy, I understand. You can substitute them with red pepper flakes- about 1/2-1 teaspoon depending on your spice level preference. And it's totally fine to skip it as well.