Paneer Chilli, a mouthwatering Indo-Chinese dish, seamlessly combines the richness of paneer (Indian cottage cheese) with the bold flavours of Chinese cuisine. This delightful fusion of textures and tastes has become a favourite on restaurant menus and home kitchens alike. In this blog post, we’ll take you through the step-by-step process of preparing Paneer Chilli and share some interesting trivia about this popular dish.
Gather Your Ingredients
Start by gathering the necessary ingredients:
- Paneer cubes
- Bell peppers (capsicum) and onions, sliced
- Garlic and ginger, minced
- Green chillies, finely chopped
- Soy sauce, vinegar, and red chilli sauce
- Cornstarch
- Salt and pepper
- Spring onions, chopped (for garnish)
- Cooking oil

A Step-by-Step Guide to Prepare Paneer Chilli
Quick Steps
- Marinate the Paneer
Marinate the paneer cubes with soy sauce, cornstarch, salt, and pepper. Allow them to soak in the flavours for about 15-20 minutes.
- Prepare the Sauce
In a bowl, mix soy sauce, vinegar, and red chilli sauce. This sauce will be used to add that signature spicy kick to the dish.
- Sauté the Ingredients
Heat oil in a pan and sauté minced garlic, ginger, and green chillies until fragrant. Add the sliced bell peppers and onions and stir-fry until they’re slightly tender yet crispy.
- Cook the Paneer
Add the marinated paneer cubes to the pan and cook until they turn golden brown and slightly crispy on the edges.
- Add the Sauce
Pour the prepared sauce over the sautéed vegetables and paneer. Toss everything together to ensure that the sauce coats the ingredients evenly.
- Garnish and Serve
Garnish the Paneer Chilli with chopped spring onions for a burst of freshness and colour. Serve it hot as an appetizer or as a main dish, accompanied by steamed rice or noodles.
Elaborated Steps
Step 1: Marinate the Paneer
To infuse the paneer cubes with flavour, create a marinade by mixing soy sauce, a pinch of salt, a dash of pepper, and a tablespoon of cornstarch. The cornstarch helps in achieving a crispy texture. Gently coat each paneer cube with the marinade, ensuring they are evenly covered. Allow the paneer to marinate for about 15-20 minutes, allowing the flavours to penetrate the cubes and enhance their taste. This marination process adds depth to the dish and ensures that each bite of Paneer Chilli is packed with irresistible flavour.
Step 2: Prepare the Sauce
Moving on to the next crucial step, it’s time to craft the flavorful sauce that will take your Paneer Chilli to the next level. Begin by combining two tablespoons of soy sauce, one tablespoon of vinegar, and one tablespoon of red chilli sauce in a bowl. To cater to your spice preference, you can easily adjust the quantities of these ingredients. For an added layer of flavour, consider incorporating minced garlic and ginger into the mixture. Once you have all the components ready, give them a thorough mix to achieve a harmonious blend. This vibrant and aromatic sauce will be the key player in introducing the unmistakable Indo-Chinese taste profile to your Paneer Chilli. As you proceed with the cooking process, this sauce will seamlessly meld with the other elements. It will ensure that every single bite bursts with the distinct tanginess and spiciness that define Indo-Chinese cuisine.
Step 3: Sauté the Ingredients
Heat a pan with a drizzle of cooking oil, sauté minced garlic, ginger, and green chillies until fragrant. Add sliced bell peppers and onions, cooking until they achieve a delicate balance between tenderness and crispiness. This sautéing process enhances the vegetables’ flavours while maintaining their vibrant colours and textures, setting the foundation for the flavorful Paneer Chilli.

Step 4: Cook the Paneer
Now, add the marinated paneer cubes to the pan. Let them cook until they turn golden and develop a slight crispiness along the edges. This cooking process not only enhances the paneer’s inherent richness but also allows its taste to shine through. Remember to stir occasionally for even cooking. Through the combination of the marinade’s infusion and the cooking method, the paneer absorbs a medley of delightful flavours. The outcome? Tender yet slightly crunchy paneer cubes that are now primed to absorb the forthcoming bold flavours of the dish.
Step 5: Add the Sauce
Pour the prepared sauce over the sautéed vegetables and paneer. Toss everything together to ensure that the sauce coats the ingredients evenly.
Step 6: Garnish and Serve
Garnish the Paneer Chilli with chopped spring onions for a burst of freshness and colour. Serve it hot as an appetizer or as a main dish, accompanied by steamed rice or noodles.

Trivia About Paneer Chilli
- Paneer Chilli originates from India and seamlessly blends Indian and Chinese culinary influences.
- Its distinct taste profile combines bold spiciness with a hint of sweetness, making it a beloved choice.
- The dish can be customized, allowing you to adjust the spice level and flavour balance according to your preference.
- Often served as a starter or appetizer, Paneer Chilli has earned its place as a popular street food delight.
- Its popularity stems from the enticing combination of paneer’s creamy texture and the dish’s bold flavours.
Conclusion
You have now successfully prepared Paneer Chilli using our detailed step-by-step guide. This delectable Indo-Chinese dish is a testament to the harmonious fusion of flavours and textures, showcasing the perfect marriage of paneer and bold spices. With its tantalizing aroma and irresistible taste, Paneer Chilli is ready to be enjoyed as a flavorful appetizer or main course, capturing the essence of culinary creativity in every bite.
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