Chili paneer is a mouthwatering Indian-Chinese dish made with paneer and chilies. There are two versions, wet and dry. It is popularly eaten dry as an appetizer or with a little more gravy as part of a meal.

Why This Recipe

Chili paneer is one of the first dishes that comes to mind when I think of Indian Chinese. It is one of my absolute favorite foods of all time. 

Chili Paneer

I developed this recipe over a decade ago when I was missing the Indian Chinese takeout food I used to get at home in Bombay. It was a favorite spot for everyone in my family. I set out to create a version of chili paneer that was just like theirs. I served this to my family and my brother, who never likes anything, loved it. My mom recently asked me for the recipe.

Ingredients

Chili paste – I use sambal oelek, my go-to for most Chinese recipes. Sriracha or even Korean gochujang will work, although it will give it a different flavor.

Soy sauce – a common ingredient in many Chinese foods. If you use low sodium soy sauce you may have to add salt.

Rice vinegar – this type of vinegar is used in many Chinese foods. If you don’t have it, use white vinegar.

Ketchup – ketchup is essentially herbed and sweetened tomato paste. If you don’t want to use ketchup, use tomato paste and add a little honey to balance out the acidity.

Corn Starch – corn starch helps the paneer crisp up. Dust it over the paneer before pan-frying it. It is also added as a slurry to form the gravy.

Rice wine vinegar – use white vinegar if you don’t have it.

Paneer – standard Indian cheese. I use a 14 oz package, cut into cubes. That is about 1 1/2 cups of paneer.

Serving Chili Paneer

This recipe makes the “dry” version, which is just lightly tossed in a pungent sauce. Many restaurants will serve this style of chili paneer as an appetizer.

To make the “wet” version, use 1 cup of water, and double the slurry, ketchup, soy sauce, chili paste, and rice wine vinegar.

Both versions go well with rice or noodles. You can serve it with plain basmati rice, or make fried rice. Serve it alongside other Indian Chinese dishes, like Chicken Manchurian.

Some people eat this with roti, but I find the combination a bit strange.

Chop sticks holding up a piece of paneer in front of a bowl of chili paneer

Cooking Tips and Substitutions

  • Use a non-stick pan for paneer
  • Make sure the slurry is made properly. To avoid clumps of corn starch, it should be mixed well at room temperature and allowed to sit for a couple of minutes. 
  • If you don’t want to use ketchup, use tomato paste with a little honey instead

Chili Paneer

Author avatar
By Puja
4.89 from 9 votes

Chili paneer is a mouthwatering Indian-Chinese dish made with paneer and chilies. There are two versions, wet and dry.

Chili Paneer
Prep Time1010 minutes
Cook Time1010 minutes
Total Time2020 minutes
CourseAppetizer, Main Course
CuisineIndian
Servings4
Calories395 kcal
4.89 from 9 votes
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Ingredients

Scale:
  • 14 oz paneer (cubed (about 1 1/2 cups))
  • 1 onion (sliced pole to pole)
  • 2 medium bell peppers (cut into sticks)
  • 1 serrano chili (chopped with seeds removed.)
  • 1 tbsp corn starch (for the paneer)
  • 1 tsp corn starch (for the slurry)
  • 3 tbsp oil (separated)
  • 1 tsp ginger (grated)
  • 3 cloves garlic (minced)
  • 3 tbsp chili paste ((I use sambal oelek))
  • 1 tbsp ketchup ((optional))
  • 1 tbsp soy sauce
  • 1 tbsp rice wine vinegar
  • salt

Instructions

  1. Heat a skillet with 2 tbsp oil.
  2. Sprinkle 1 tbsp of cornstarch onto the paneer cubes. Toss until well coated.
  3. In a bowl, make a slurry by mixing 1 tsp cornstarch with 1/2 cup cold water. Stir until all the lumps are removed and set aside for at least 2 minutes.
  4. In a non-stick pan, heat 1 tablespoon of oil over medium heat. Add the paneer and pan fry until golden brown. Set aside on a paper towel to absorb excess oil.
  5. In the same pan (no need to rinse or wipe), add 1 tbsp of oil. Toss in the onions, bell peppers and a pinch of salt. Cook until soft. Add chilies.
  6. While the bell peppers cook,
  7. Add in the ginger and garlic to the onions and bell peppers. Stir. Let cook for about 30 seconds.
  8. Turn the heat to low and add in the cornstarch slurry. Stir.
  9. Add the fried paneer cubes.
  10. Add in the chili paste, ketchup, soy sauce and vinegar. Stir.
  11. Cook for about 5 to 7 minutes until all the ingredients are well combined.

Notes:

To make the “wet” version, use 1 cup of water, and double the slurry, ketchup, soy sauce, chili paste, and rice wine vinegar.


Video

Calories:395kcal
Carbohydrates:15g
Protein:14g
Fat:32g
Saturated Fat:13g
Polyunsaturated Fat:3g
Monounsaturated Fat:7g
Trans Fat:0.04g
Cholesterol:56mg
Sodium:313mg
Potassium:240mg
Fiber:2g
Sugar:6g
Vitamin A:1921IU
Vitamin C:81mg
Calcium:421mg
Iron:1mg
Chili Paneer by Indiaphile.info
Chili paneer pairs great with a bowl of noodles.

Chili Paneer by Indiaphile.info
  • Lori @ Foxes Love Lemons's avatar

    Lori @ Foxes Love Lemons

    Oh my gosh, this is beautiful! Great photography – my mouth is watering just looking at this! Pretty much anything that involves sambal oelek gets my heart going pitter-patter, but this especially 🙂

  • Puja's avatar

    Puja

    Thank you so much Lori! I love sambal oelek too! 🙂

  • Peggy's avatar

    Peggy

    This looks like such a great fusion dish! A lot of the Indian restaurant around here have an Indo-Chinese section to their menus so I’ve tried a few of the dishes and they’re always delicious =)

    • Puja's avatar

      Puja

      Thanks Peggy! I love that more and more Indian restaurants in America are adding an Indo-Chinese section. 🙂

  • Claudia's avatar

    Claudia

    Looks delicious! Both Indian and Chinese restaurants are very popular in Berlin, but I have bever seen or tasted a fusion. Thank’s for the inspiration.

    • Puja's avatar

      Puja

      Thank you Claudia! Do let me know if you make some Indian-Chinese food.

  • Divya Pramil's avatar

    Divya Pramil

    Yum looks too appetizing and lovely clicks, esp the 1st one 🙂

    • Puja's avatar

      Puja

      Thanks Divya! 🙂

  • caitlin's avatar

    caitlin

    I just made this and it was SO good and really easy! Thanks for the recipe!

    • Puja's avatar

      Puja

      Thanks Caitlin! I am so happy you made the recipe and that you liked it. It’s one of my all time favorites! 🙂

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