Learn how to make the most amazing Chilli Paneer (Restaurant Style).
This is a dish of wok-fried chunks of golden paneer in a soy, chilli and garlic sauce, with vibrant peppers and onions.

Chilli Paneer is a real crowd pleaser of an appetizer, and an Indian restaurant favourite.
Let’s try to see if we can recreate the delicious restaurant version of Chilli Paneer at home.
Spoiler: We certainly can!

In this post we’ll learn how to make an amazing restaurant-style Chilli Paneer.
This Chilli Paneer recipe is…
- Vegetarian
- Easily veganized (just replace the paneer with tofu, seitan or tempeh)
- Tastes like it’s restaurant-quality Chilli Paneer
- Perfect side for rice or noodles
What is Chilli Paneer?

Chilli Paneer is an iconic, flavour-packed stir fry popular in restaurants and at home.
Paneer is a soft and mild cottage cheese popular in Indian cuisine.
The seasonings are a mix of Indian and Chinese flavours, calling for soy sauce, garlic, vinegar and chillies.
It can be a starter, main, or side dish. Chilli Paneer is total vegetarian comfort food, which is why it’s such a treat when eating out.
An Indo-Chinese favourite

I was introduced to Indo-Chinese food in the late 90s when ‘fusion cooking’ wasn’t a dirty phrase.
British curry houses were no longer the only ‘Indian’ option when eating out in the UK.
Korma? What was that? Balti, Bhuna and Phall? I’d never heard of them.
Growing up in a Gujarati household meant that I was accustomed to Methi Bateta (fenugreek cooked with potato), Oroh (burnt aubergine curry) and Kadhi (buttermilk soup).
I’d nod and smile as my friends raved about the meals they relished during their visits to the local Indian restaurant.
I had no idea what half of the dishes were!

As the millennium approached, more and more options bubbled up, beginning with areas populated with a high density of Indian residents.
Leicester, Wembley and Southall were all on the radar. We visited often.
It was in Leicester that I first read the words Indo-Chinese fusion dishes on a restaurant menu.
I wanted to know more. I therefore made it my mission to try them all.
Chilli Paneer, Veg Manchurian, Hakka Noodles, Spring Rolls, Mixed Rice & Noodle Sizzler and even Paneer Dosa.
I ordered as much as I could manage and that was the day I fell in love with Chilli Paneer.
Where does Indo-Chinese food come from?

Indo-Chinese food, also known as Desi Chinese is a cuisine developed by the Chinese community of Kolkata, West Bengal.
It’s become a lifelong dream of mine to visit Kolkata’s Chinatown and enjoy Hakka-Indian food in its original birthplace.
Just as my grandparents and thousands of other families brought Indian cuisine to East Africa and the British embraced Indian curry, this small community of Hakka settlers shared the gift of their ancestral cuisine with Kolkata.
Little did they know that it would lead to the creation of a truly exquisite Indian-Chinese food culture that’s now internationally sought after.
Food travels regardless of borders.
How to make Chilli Paneer (Restaurant Style)
There are two key styles of this dish. Both celebrate fried paneer and veggies.
However, Dry Chilli Paneer is delicious as a starter, while Chilli Paneer Gravy gives off main course vibes, since you’ll need some rice or noodles to mop up all that glossy gravy.
How to make Dry Chilli Paneer

Plenty of chillies, onions and garlic add a whack of flavour, alongside seasonings like soy sauce (I use both light and dark), white pepper, vinegar and sugar.
Firstly, cubes of paneer get a liberal coating of cornflour (cornstarch) before we fry them in hot oil to create a light and crunchy crust.


The sauces, along with a small amount of cornflour slurry are just enough liquid to create a cloak of flavour for the fried paneer, hence the dish is ‘dry’.
Don’t worry, the chunks of paneer will still be juicy, just follow my recipe for the right technique.
Other styles of Chilli Paneer


A quick and easy way to get your Chilli Paneer fix with minimal effort is to make Chilli Paneer Fried Rice.
It’s a one-wok wonder which combines the best of both worlds!
Chilli Paneer Fried Rice is an amazing way to use up leftover cold rice.
Simply toss the cold rice into the wok at the end and heat through.
5 tips for making better Chilli Paneer (Restaurant Style)
- A smoking hot wok is essential for the highly coveted wok hei. This refers to the aromas of caramelisation.
- Don’t over fry the paneer. It can turn hard and chewy.
- Prepare all the ingredients ahead of time. Chop the vegetables, get the sauces and seasonings ready. The fast cooking over high heat is what keeps everything fresh, crunchy and delicious.
- For super soft paneer, first soak the uncooked paneer cubes in hot water for 10 minutes before using.
Ingredients for Chilli Paneer

- Paneer – shop bought paneer works best
- Pepper – bell pepper or capsicum in mixed colours
- Red onion – or use brown onions
- Spring onion – keep the white and green parts separate
- Green chillies – long Indian finger chillies
- Garlic – large cloves, crushed
- Neutral cooking oil – e.g. sunflower, rapeseed, vegetable, etc
- Dark soy sauce – provides a rich caramel colour
- Light soy sauce – gives the dish ample seasoning
- White vinegar – any distilled or Chinese rice vinegar
- Cornflour (cornstarch) – to give the paneer a crispy coating and to thicken the sauce
- Ground white pepper – for the coating (don’t skip it)
- Salt – for the coating
- Sugar – white or brown sugar to balance the spiciness of the chillies
- MSG – monosodium glutamate (ajinomoto), a flavour enhancer
- Shredded lettuce – to serve
How to make Chilli Paneer (Restaurant Style): Step-by-step guide
1. Soak the paneer

If you’re using shop bought paneer but would like to give it a soft and squidgy texture, try this neat little hack.
First, cut the paneer into 1cm cubes. Place into a bowl. Pour enough boiling water over the paneer to cover. Allow to stand for 10-15 minutes. Drain well.
2. Coat the paneer

In a large sandwich bag or freezer bag, combine the ingredients for the coating (cornflour, white pepper and salt).
Add the paneer and close the bag. Hold the bag tightly and shake vigorously to coat all the pieces.
3. Fry the paneer

Heat enough oil for deep frying in a pan or wok to 180C.
Working in small batches, place the paneer on to a perforated spoon and carefully lower it into the oil.
Allow the paneer to settle for a minute before moving it around to fry evenly. This will ensure the coating sticks, rather than falling off in the oil.
Fry the paneer for around 3-4 minutes, until lightly golden brown and crispy on the outside.
Remove the paneer from the oil and drain in a colander with a plate underneath to catch any drips.
Alternatively, you can spray the paneer liberally with cooking oil and air fry at 180C for 5 minutes.
Note: Air frying the paneer will not crisp it up as well as deep frying.
4. Prepare the veggies and aromatics

Core and slice the peppers into 2cm strips.
Peel the onions, cut into segments and separate into petals.
It’s important to cut onions and peppers to similar sizes so they cook at the same time and remain crunchy.
Slice the spring onions and chillies thinly, on the bias (a diagonal cut).
Keep the white and green parts of the spring onions separate.
Did you know that bias cutting spring onions and chillies allows for an increased surface area.
Crush the garlic so it’s a very fine paste.
5. Make the cornflour slurry
The cooking process is rapid, so stir the cornflour and water together before you begin.
This will thicken the sauce.
6. Cook the Chilli Paneer

Place a seasoned wok or heavy-based pan over a very high heat. Pre-heat for 3-4 minutes.
The pan should be smoking hot prior to adding any ingredients.
Pour in the oil and then quickly add the garlic and chillies.
Sizzle for a few seconds before adding in the peppers, red onions, spring onions (white parts). Stir fry for 30 seconds.

Add the light and dark soy sauce, vinegar, MSG and sugar.
Sauté over a very high heat for another 30 seconds.
Give the slurry a brief mix (it can settle). Add the slurry to the wok and cook out for 20 seconds.

Add the paneer and reserved spring onion greens to the wok and toss one final time to coat.
7. The Chilli Paneer is ready to serve!

Phew! Your Chilli Paneer is ready to serve. I like to plate it up with crunchy iceberg lettuce for freshness.
Follow these instructions to make Chilli Paneer with gravy

To make additional gravy, prepare the Chilli Paneer exactly as you would make the dry version, except with the addition of additional cornflour, water, soy sauce, MSG sugar.
It contains the enough slurry required to create a silky, shiny gravy, as well as some extra seasonings to compensate for the additional water.
Chilli Paneer FAQ
If you don’t want to deep fry the paneer for Chilli Paneer, you can also spray the paneer liberally with cooking oil and air fry at 180C for 5 minutes. Note: Air frying the paneer will not crisp it up as well as deep frying.
Chilli Paneer is best eaten on the day it’s made but you can keep it refrigerated for up to 48 hours, or freeze for up to 3 months.
Allow the Chilli Paneer to cool completely. Place the chilli paneer in a freezer-safe container and freezer for up to 3 months. Defrost at room temperature and heat through. Ensure food is piping hot before serving.
No. Paneer is a dairy product. To make a vegan alternative to Chilli Paneer, try making Chilli Tofu. Simply replace the paneer in this recipe with firm tofu. No need to soak it in hot water. Press the water out and coat in the cornstarch mixture.
What to serve with Chilli Paneer?


Well my friends, I think I may have nailed it but I’ll let you have the final say on that. If you’ve never tried it before, Chilli Paneer is one fusion dish worth trying.
How to make Chilli Paneer (Restaurant Style)
Chilli Paneer (Restaurant-Style)

Crispy paneer cubes wok-fried in a chilli and garlic sauce with crunchy peppers and onions. A real Indo-Chinese crowd pleaser and Indian restaurant favourite. This dish is perfect as an appetizer, or as part of a larger meal with rice or noodles.
Ingredients
- 450g paneer, cut into 2cm cubes
- 50g cornflour (cornstarch)
- 1 tsp ground white pepper
- 1/4 tsp salt
- 3 peppers, sliced into 3cm strips (I use red and green)
- 1 large red onion, cut into 6 segments and separated into petals
- 8 spring onions, thinly sliced on the bias, some greens reserved for garnishing
- 3 tbsp sunflower or rapeseed oil
- 8 large cloves garlic, crushed
- 4 green chillies, thinly sliced on the bias
- 2 tbsp light soy sauce
- 1 tbsp dark soy sauce
- 2 tsp white vinegar
- 1 tsp sugar
- 1/2 tsp MSG (optional)
- 2 tsp cornflour
- 2 tbsp cold water
- Shredded lettuce to serve
Instructions
- First, cut the paneer into 1cm cubes. Place into a bowl. Pour enough boiling water over the paneer to cover. Allow to stand for 10-15 minutes. Drain well. If you're using homemade paneer you can skip this step.
- In a large sandwich bag or freezer bag, combine the ingredients for the coating (cornflour, white pepper and salt). Add the paneer and close the bag. Hold the bag tightly and shake vigorously to coat all the pieces.
- Heat enough oil for deep frying in a pan or wok to 180C, or moderately hot.
- Working in small batches, place the paneer on to a perforated spoon and carefully lower it into the oil. Allow the paneer to settle for a minute before moving it around to fry evenly. This will ensure the coating sticks, rather than falling off in the oil. Fry the paneer for around 3-4 minutes, until lightly golden brown and crispy on the outside.
- Remove the paneer from the oil and drain in a colander with a plate underneath to catch any drips.
- In a small bowl, mix together the cornflour and water before you begin to stir fry.
- Place a seasoned wok or heavy-based pan over a very high heat. Pre-heat for 3-4 minutes. The pan should be smoking hot prior to adding any ingredients.
- Pour in the oil and then quickly add the garlic and chillies. Sizzle for a few seconds before adding in the peppers, red onions, spring onions (white parts). Stir fry for 30 seconds.
- Add the light and dark soy sauce, vinegar, MSG and sugar. Sauté over a very high heat for another 30 seconds.
- Give the slurry a brief mix (it can settle). Add the slurry to the wok and cook out for 20 seconds.
- Add the paneer and reserved spring onion greens to the wok and toss one final time to coat.
- Plate the chilli paneer up with crunchy iceberg lettuce. Serve as it is or with rice or noodles.
Notes
Air Fryer Chilli Paneer
You can also spray the paneer liberally with cooking oil and air fry at 180C for 5 minutes. Note: Air frying the paneer will not crisp it up as well as deep frying.
To store Chilli Paneer
Chilli Paneer is best eaten on the day it's made but you can keep it refrigerated for up to 48 hours, or freeze for up to 3 months.
Chilli Paneer is suitable for home freezing
Allow the Chilli Paneer to cool completely. Place the chilli paneer in a freezer-safe container and freezer for up to 3 months. Defrost at room temperature and heat through. Ensure food is piping hot before serving.
Nutrition Information:
Yield: 6 Serving Size: 1Amount Per Serving: Calories: 346Total Fat: 25gSaturated Fat: 10gTrans Fat: 1gUnsaturated Fat: 12gCholesterol: 52mgSodium: 1228mgCarbohydrates: 15gFiber: 3gSugar: 6gProtein: 17g
You might also like these Paneer recipes
- The Best Homemade Paneer
- Restaurant-Style Paneer Tikka
- Shahi Paneer
- Homemade Masala Paneer
- Brown Butter Paneer Makhani
- Restaurant-Style Matar Paneer
- Palak Paneer
Pin this Chilli Paneer (Restaurant Style) recipe for later!

Well my friends, I think I may have nailed it but I’ll let you have the final say on that.
If you’ve never tried Indo-Chinese food before, Chilli Paneer is one fusion dish worth trying.
If you like this, you’ll love my recipe for Hakka Noodles
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Vivian
Sunday 11th of April 2021
Can you please say what kind of green chilies to use? There are so many, and since it looks like a vital part of this dish, it would help to know. Thanks!
Sanjana
Sunday 11th of April 2021
I use the Indian green finger chillies