Craving that spicy, tangy, street-style Chilli Paneer you get from your favorite Indo-Chinese joint? This version brings the same bold flavors home and that signature glossy sauce you can’t stop eating.
Chilli Paneer has that perfect balance of spice, crunch, and comfort that makes it everyone’s go-to Indo-Chinese dish. The soft paneer, crisp veggies, and glossy, flavourful sauce come together so beautifully that it’s hard to stop at just one bite.
Making it at home is so much easier than you might think. You just need a handful of pantry staples and a hot wok to get those street-style flavours right. These go perfectly with dishes like Veg Hakka Noodles or Egg Fried Rice, to make up the perfect meal for a cosy night in with family & friends.
Jump to section: Chilli Paneer
Chilli Paneer Ingredients
- Paneer: Use fresh, firm paneer so it holds shape when fried but stays soft inside.
- Coating Mix: A blend of cornflour, maida (all purpose flour), Kashmiri chilli powder, soy sauce, salt, and a splash of water to give the paneer a crisp outer layer.
- Aromatics: Ginger, garlic, and green chillies add that signature Indo-Chinese punch and depth of flavour.
- Veggies: Onion and capsicum (green bell pepper) for added texture
- Sauces: Soy sauce, red chilli sauce, ketchup, vinegar, and a touch of cornflour creates the glossy, spicy-sweet base.
- Oil: For frying and stir-frying.
- Spring Onions: To garnish and add freshness.
Frequently Asked Questions
Yes! Simply replace the paneer with firm tofu. Pat it dry before coating and frying so it crisps up nicely and holds the sauce well.
Absolutely. Just add about half a cup of water or vegetable stock to the sauce when cooking, and let it simmer for a few extra minutes. You’ll get that perfect saucy consistency that’s great with rice or noodles.
It can be! While it’s usually fried, you can air fry or pan-fry the paneer instead of deep frying. Use less oil, add more veggies, and you’ll have a lighter version that still tastes amazing.
Richa’s Top Tips
- Use quality paneer: Good paneer will take on flavours really well and stay soft instead of becoming rubbery when deep fried. Store bought paneer will do, but if you’ve got that extra 15 minute window, try out my Homemade Paneer Recipe!
- Fry on high heat: Keeps the paneer crispy on the outside and prevents it from turning chewy.
- Keep the veggies crunchy: Onions and capsicum should be just cooked, still bright, crisp, and full of bite. That’s where the street-style texture comes from.
- Don’t skip the wok toss: Once you add the sauce, toss everything quickly on high heat to coat the paneer evenly and get that glossy finish.
Storage Tips
- Fridge: Store leftover Chilli Paneer in an airtight container for up to 2 days. The paneer might soften a bit, but it’ll still taste delicious.
- Freezer: It’s best to freeze just the sauce (without paneer) for up to 10 days. When ready to eat, thaw and toss with freshly fried paneer cubes.
- Reheating: Warm it up in a pan over low heat. Add a splash of water to loosen the sauce and keep it from drying out. Avoid microwaving too long, as paneer can turn rubbery.
Serving Ideas
This Chilli Paneer tastes amazing on its own, but if you’re putting together a full Indo-Chinese spread, here are some delicious pairings to try:
- With Schezwan Fried Rice – Double up on bold flavors with this fiery rice that complements the paneer perfectly.
- With Garlic Fried Rice – A milder option that balances the spice in the paneer.
- With Veg Manchurian – A saucy, veggie-filled side that pairs well with Chilli Paneer.
- With Spring Rolls – Crisp, flaky, and just the right amount of contrast to the saucy paneer.
- With Momos – Steamed or fried, both go perfectly with this spicy appetizer.
- With Soup – Serve alongside Hot and Sour Soup or Manchow Soup to start your meal right.
Customisation Ideas
- Make it saucier: Want that restaurant-style gravy version? Just add an extra half cup of water to the sauce and let it simmer till slightly thickened.
- Try it with tofu: Swap the paneer with firm tofu for a vegan-friendly version that’s just as satisfying.
- Add veggies: Toss in diced bell peppers, mushrooms, or baby corn for more texture and flavor.
- Use baked or air-fried paneer: Skip deep-frying for a lighter, equally tasty version that still has that crisp bite.
- Add crunch: Sprinkle toasted sesame seeds or crushed roasted peanuts on top just before serving for a fun twist.
And that’s your street-style Chilli Paneer, mouth watering crispiness, spicy, and full of flavor. You can trust it to always hit the right spot, whether you’re cooking for friends or just craving a quick fix for yourself. Every bite has that balance of heat and tang that makes you reach for another piece before you even realize it.
If you try this recipe, I’d love to see how it turns out! Share your version and tag @my_foodstory on Instagram, I can’t wait to see your kitchen magic.
Watch Paneer Chilli Recipe Video
Street Style Chilli Paneer
Ingredients
- 200 grams Paneer cut into cubes
- 2 tablespoons Cornflour
- 1 tablespoon maida
- 1 teaspoon Kashmiri Chilli Powder
- 1 teaspoon soy sauce
- ½ teaspoon Salt
- A splash of water
- Oil for Frying approx half cup
Sauce Mixture
- 1 tablespoon Soy Sauce
- 2 teaspoons Red Chilli Sauce
- 1 tablespoon Ketchup
- ¼ teaspoon Kashmiri Chilli Powder or paprika
- ½ teaspoon Vinegar
- ¼ teaspoon Salt
- ½ teaspoon Cornflour
- ½ cup Water
For the Stir Fry
- 2 teaspoons chopped Ginger
- 2 teaspoons chopped Garlic
- 2-3 Green Chillies slit lengthwise
- 2 Onions cubed
- 1 Capsicum cubed
- 1 tablespoons chopped Spring Onions
Instructions
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Add cornflour, maida, kashmiri chilli powder, soy sauce, salt to a bowl. Add the paneer cubes and toss to coat. Sprinkle a little water just to get the coating to stick to the paneer. Toss and set aside.
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Heat oil in a wok or pan and add the paneer piece by piece to prevent them from sticking to each other. Fry them on high heat for 2-3 minutes, turning once or twice till they are golden brown. Take them out on a plate and set aside.
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Whisk together all the ingredients under sauce and set aside.
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Remove any excess oil from the wok, leaving behind 1.5 tbsp oil. Once the oil is hot, add ginger, garlic and green chillies. Saute for a minute or two and add onions and capsicum.
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Stir fry for 2-3 minutes on high heat and add the paneer cubes. Toss the paneer with the aromatics for a minute.
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Give the sauce a whisk and add it to the wok. Toss together on high heat for 2 minutes till the cornflour is cooked and the sauce takes on a thick, glossy finish and coats the paneer pieces. Add a little water if you want a little more sauce. Sprinkle with chopped spring onions and serve hot.
Video
Notes
- Chilli Paneer Gravy: For saucier chilli paneer, add an extra half cup of water to the sauce
- Vegan Chilli Paneer: You can easily substitute the paneer for tofu to make chilli tofu
- You can substitute the store bought chilli sauce with homemade chilli garlic paste. I highly recommend making it yourself. I used Kashmiri Red Chillies for this recipe which have more colour than heat
- If using homemade chilli paste, once you add it to to the wok, be sure to fry it until almost all of the raw aroma goes. This will help you avoid the raw chilli taste and smell in the dish.
Nutrition
This article is researched and written by Harita Odedra.
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