Paneer Chilli Dry is a beloved dish in the Indo-Chinese cuisine repertoire, celebrated for its bold flavors, tantalizing spices, and irresistibly crispy paneer cubes. Whether you’re a seasoned cook or a beginner looking to impress family and friends, this 7-step guide will take you through the process of making restaurant-style Paneer Chilli Dry right in your own kitchen. Perfect as an appetizer, snack, or even a side dish, this dish blends the smoky heat of green chilies, the sweetness of bell peppers, and the rich creaminess of paneer for a truly unforgettable taste.
In this article, you will find step-by-step instructions, helpful tips, and tricks to perfect your Paneer Chilli Dry. We’ll also explore variations and serving suggestions, so you can customize it to your taste.
Step 1: Gather Fresh Ingredients

The foundation of a delicious Paneer Chilli Dry starts with fresh ingredients. For the perfect Indo-Chinese flavor, you will need:
- Paneer: 250-300 grams, cut into cubes
- Bell peppers (capsicum): 1 each of red and green, cut into cubes
- Onion: 1 medium, diced into chunks
- Green chilies: 2-3, slit lengthwise (adjust according to heat preference)
- Garlic: 4-5 cloves, finely chopped
- Ginger: 1-inch piece, finely chopped or grated
- Soy sauce: 2 tablespoons
- Red chili sauce: 1-2 tablespoons
- Vinegar: 1 teaspoon
- Cornflour: 2 tablespoons (for a crispy coating)
- All-purpose flour: 1 tablespoon (optional, for extra crispiness)
- Salt & black pepper: to taste
- Oil: for frying
- Spring onions and sesame seeds: for garnish
Pro Tip: Use fresh, firm paneer for best results. Homemade paneer often works best because it holds shape while frying.
Step 2: Marinate the Paneer

Marinating the paneer is key to infusing flavor and ensuring a light, crispy texture.
- In a mixing bowl, combine cornflour, all-purpose flour, salt, black pepper, and 1 teaspoon soy sauce.
- Gently coat the paneer cubes in this mixture.
- Let the paneer rest for 10-15 minutes.
This simple step ensures that when you fry the paneer, it becomes golden, crispy, and perfectly seasoned.
Chef’s Tip: For a slightly tangier flavor, you can add a teaspoon of vinegar to the marinade.
Step 3: Fry the Paneer to Perfection

Crispy paneer is the star of Paneer Chilli Dry.
- Heat 3-4 tablespoons of oil in a non-stick pan or wok.
- Add the paneer cubes in batches to avoid overcrowding.
- Fry until golden brown on all sides. Remove and drain on paper towels.
Tip: Don’t over-fry; the paneer should be crispy outside but soft inside.
Step 4: Stir-Fry the Aromatics

The flavor base of Paneer Chilli Dry comes from the sautéed aromatics.
- In the same pan, add a teaspoon of oil.
- Sauté garlic, ginger, and green chilies until fragrant (about 30-40 seconds).
- Add onions and bell peppers, stirring over high heat for 2-3 minutes until slightly tender but still crunchy.
Flavor Tip: High heat is key to keeping the vegetables crisp while locking in their natural sweetness.
Step 5: Make the Sauce
The sauce gives Paneer Chilli Dry its signature tangy, spicy flavor.
- Add soy sauce, red chili sauce, and vinegar to the pan.
- Mix well and cook for 1-2 minutes until the sauce slightly thickens.
- Adjust salt and pepper according to taste.
Pro Tip: If you like a bit of sweetness, add half a teaspoon of sugar to balance the flavors.
Step 6: Combine Paneer and Sauce

Now it’s time to bring everything together.
- Add the fried paneer cubes to the pan.
- Toss gently to coat the paneer evenly with the sauce.
- Cook for another 1-2 minutes to ensure the flavors meld together.
Tip: Be gentle when tossing paneer to avoid breaking the cubes. A soft spatula works best.
Step 7: Garnish and Serve
Presentation makes a difference, especially if you’re serving guests.
- Sprinkle chopped spring onions and sesame seeds over the top.
- Serve hot with fried rice, noodles, or as a standalone appetizer.
Serving Suggestion: Paneer Chilli Dry pairs beautifully with garlic fried rice, Hakka noodles, or even as a spicy topping on wraps and sandwiches.
Additional Tips for Perfect Paneer Chilli Dry
- Paneer Texture: Always use firm paneer; soft paneer may break during frying.
- Crispiness: For extra crunch, toss the marinated paneer cubes lightly in breadcrumbs before frying.
- Spice Level: Adjust the number of green chilies or chili sauce based on your heat preference.
- Vegetable Crunch: Don’t overcook bell peppers and onions; they should retain their crunch.
- Leftover Magic: Paneer Chilli Dry tastes just as good cold, making it a perfect lunchbox snack.
Why Paneer Chilli Dry is a Must-Try Dish
Paneer Chilli Dry is more than just a snack; it’s an experience. Its spicy, tangy flavor makes it a favorite for parties and weekend dinners. Beyond taste, paneer offers nutritional benefits like high protein content, calcium, and essential vitamins, making this dish not only delicious but also healthy.
Additionally, the Indo-Chinese fusion style allows you to experiment with ingredients. Some home cooks add mushrooms, baby corn, or tofu for variation, while others include a hint of black pepper or Szechuan sauce for an extra punch.
Conclusion
Mastering Paneer Chilli Dry at home doesn’t have to be intimidating. By following this 7-step guide, you can enjoy a restaurant-style Indo-Chinese dish from the comfort of your kitchen. Fresh ingredients, careful frying, a well-balanced sauce, and the right garnishing are all it takes to make this dish a hit with family and friends.
Whether served as an appetizer at a dinner party or as a quick snack, Paneer Chilli Dry is sure to leave everyone asking for seconds. So, gather your ingredients, fire up the stove, and get ready to enjoy this spicy, tangy, and utterly satisfying Indo-Chinese delight.