I love making chilli paneer when I want takeout but don’t want to wait. Cubes of golden-fried paneer get tossed in a sticky, Indo-Chinese-style sauce so it’s spicy in a way that hits all the right places. Plus, it really comes together faster than it takes to scroll through a delivery app. No sad, soggy leftovers because it will disappear before the second round of noodles even hits the table!
This Indo-Chinese chilli paneer is better than takeout!
There’s a small Indo-Chinese joint in Chennai (Cascade, if you must know) that makes chilli paneer so good, I’d show up early early just to avoid the wait. This is homage to that recipe (and memory!)
My version works because it’s balanced. The paneer gets a light batter for crunch without getting gummy. The sauce is bold but not gloopy, with just enough heat to keep things interesting. You can keep the veggies crisp, double the paneer, or even swap in tofu if that’s what you’ve got — this recipe is flexible but focused.
If this is your kind of comfort food, you’ll also love my gochujang tofu, tofu lettuce wraps, and samosa chaat — they all hit the same sweet-savory umami notes with minimal effort.
Ingredients and why they matter
This Indian chilli paneer recipe is all about that perfect balance of crispy, golden paneer cubes and a bold, spicy sauce. The paneer gets its crunch from a light cornstarch and flour coating, while garlic, ginger, soy sauce, and chili sauce bring the savory heat. Toss in sweet bell peppers and onions for color and crunch, and you’ve got a dish that’s equal parts spicy, tangy, and irresistible!
Full ingredient list and detailed instructions in the recipe card.
- Paneer: Use a firm block (not the pre-crumbled stuff). I like to cut it into thick, square-ish cubes for better browning. Homemade works great too.
- Cornstarch + flour: This combo crisps up the paneer without making it doughy. You only need a light coating — not a thick batter.
- Red chili sauce: I use Ching’s or any Indo-Chinese style sauce with some vinegar and heat. Sriracha will work in a pinch, but it won’t taste quite the same.
- Bell pepper and onion: Keep them just tender to contrast with the crispy paneer. No need to overcomplicate.
- Cornstarch slurry: This thickens the sauce and gives it that glossy takeout-style cling. Don’t skip it.
TIPS & TRICKS
Shruthi’s top tips
- Cut the paneer evenly – ¾-inch cubes crisp up nicely and won’t fall apart when you toss them in sauce.
- Keep the batter light. You want just enough to create crunch without a thick coating.
- Use medium heat to fry. Too high, and the paneer browns too fast without crisping. Too low, and it absorbs oil. Let the oil fully heat before adding paneer or it won’t crisp properly.
- Don’t overcrowd the pan. Fry in batches if needed for even browning.
- For a drier version, reduce the cornstarch slurry. For a saucier finish, add 1–2 tablespoons water or stock.
- To keep the paneer crispy, don’t let it sit in the sauce too long.
How to make Indian paneer
- In a medium bowl, whisk together cornstarch, flour, salt, pepper, and water to form a smooth batter. Add paneer cubes and toss gently to coat.
- Heat oil in a nonstick or cast-iron skillet over medium heat. Working in batches if needed, fry coated paneer until golden brown and crisp on all sides, about 3–4 minutes per side. Transfer to a paper towel–lined plate.
- Discard excess oil, leaving about 1 tablespoon in the pan. Return the pan to medium heat. Add garlic and ginger; sauté until fragrant, about 30 seconds. Stir in onion and bell pepper; cook until slightly softened, 2–3 minutes.
- Add soy sauce, chili sauce, vinegar, sugar, and black pepper. Stir to combine, then add cornstarch slurry. Simmer until sauce thickens and becomes glossy, 1–2 minutes.
- Add fried paneer cubes to the sauce and toss to coat evenly. Garnish with green onions if desired. Serve hot as-is or with fried rice or noodles.
How to serve spicy paneer
This spicy paneer will take any boring weeknight dinner and turn it into something you’ll actually look forward to. Serve it hot with jeera rice or vegetable hakka noodles, and a refreshing cucumber raita, then add warm naan on the side to scoop up every last drop of that spicy, tangy sauce—comfort food at its finest!
Storage and reheating suggestions
Store leftover spicy paneer in an airtight container in the fridge for up to 3 days. Reheat gently on the stove over low heat or in the microwave, adding a splash of water if the sauce has thickened.
To freeze, store it in an airtight, freezer-safe container for up to 2 months. Thaw overnight in the fridge, then reheat on the stove or microwave.
More spicy Indian recipes
Love Indian recipes? Here are a few that will spice up your week!
Aloo Gobi Masala (Indian Potato and Cauliflower)
Authentic Bombay Potatoes (Spicy Indian Potatoes)
Samosa Chaat
Vegetable Korma (Veg Kurma)
Indian Chilli Paneer
Ingredients
For the Paneer
- 2 tablespoons cornstarch
- 2 tablespoons all-purpose flour
- ¼ teaspoon salt
- ¼ teaspoon black pepper
- 3 tablespoons water
- 14 oz paneer, cut into ¾ inch cubes
- 3 tablespoons vegetable oil, for shallow frying
For the Sauce
- 1 tablespoon oil
- 2 cloves garlic, minced
- 1 teaspoon ginger, minced
- 1 small onion, diced
- 1 small red bell pepper, diced (~1 cup)
- 2 tablespoons soy sauce
- 1 tablespoon red chili sauce
- 1 teaspoon white vinegar
- 1 teaspoon sugar
- ½ teaspoon black pepper
- 1 teaspoon cornstarch, mixed with 2 tablespoons water
- 1 tablespoon green onions, optional, for garnish
Instructions
- In a medium bowl, whisk together cornstarch, flour, salt, pepper, and water to form a smooth batter. Add paneer cubes and toss gently to coat.
- Heat oil in a nonstick or cast-iron skillet over medium heat.
- Working in batches if needed, fry coated paneer until golden brown and crisp on all sides, about 3–4 minutes per side. Transfer to a paper towel–lined plate.
- Discard excess oil, leaving about 1 tablespoon in the pan.
- Return the pan to medium heat. Add garlic and ginger; sauté until fragrant, about 30 seconds.
- Stir in onion and bell pepper; cook until slightly softened, 2–3 minutes.
- Add soy sauce, chili sauce, vinegar, sugar, and black pepper. Stir to combine, then add cornstarch slurry. Simmer until sauce thickens and becomes glossy, 1–2 minutes.
- Add fried paneer to the sauce and toss to coat evenly. Garnish with green onions if desired.
- Serve hot as-is or with fried rice or noodles.
Notes
Cooking Tips
- For extra crispy paneer, chill coated paneer cubes in the fridge for 10 minutes before frying.
- Prefer more crunch? Double-fry the paneer or increase cornstarch slightly.
- Keep vegetables slightly crisp to balance the creamy paneer and thick sauce.
- Adjust heat by increasing or decreasing chili sauce.
Storage & Reheating
- Storage: Store in an airtight container in the refrigerator for up to 2 days.
- Reheating: Warm in a pan over low heat with a splash of water to prevent the sauce from drying out.
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.
