If you love bold flavors, spicy sauces, and crispy textures, Paneer Chilli Dry is the perfect dish to satisfy your cravings. This Indo-Chinese favorite combines soft paneer cubes, crunchy bell peppers, and a fiery chili sauce, delivering a restaurant-style appetizer that’s perfect for home cooking.
With this 7-step guide, you can make Paneer Chilli Dry at home, recreating the authentic flavors of your favorite Chinese-Indian restaurant right in your American kitchen.
Why Paneer Chilli Dry Is Perfect for Americans
Paneer Chilli Dry is ideal for American home cooks because it is:
- Quick and easy: Ready in under 30 minutes.
- Protein-rich: Paneer provides a healthy vegetarian protein source.
- Flavorful and spicy: Combines sweet, tangy, and spicy notes in every bite.
- Versatile: Works as an appetizer, snack, or side dish with rice and noodles.
- Kid- and adult-friendly: Spice levels can be adjusted to taste.
This dish is a perfect fusion of Indian and Chinese flavors, making it appealing to anyone seeking bold, restaurant-style food at home.
Ingredients You’ll Need
Here’s a list of fresh, easily available ingredients to make Paneer Chilli Dry:
For the Paneer:
- 250 grams paneer, cut into 1-inch cubes
- 2 tablespoons cornstarch or all-purpose flour
- Salt and pepper to taste
- 2 tablespoons oil for frying
For the Sauce and Stir-Fry:
- 1 small onion, diced
- 1 bell pepper, diced (green or red)
- 2–3 garlic cloves, minced
- 1-inch ginger, grated
- 2–3 green chilies, slit (optional for spice)
- 2 tablespoons soy sauce
- 1 tablespoon chili sauce (adjust to taste)
- 1 teaspoon vinegar
- ½ teaspoon black pepper
- 1 teaspoon sugar (optional, balances flavors)
- 1–2 tablespoons water for tossing
Garnish:
- Chopped spring onions or fresh coriander leaves
Optional Additions:
- Sliced mushrooms, carrots, or baby corn for extra crunch
- Sesame seeds for garnish
- Paneer cubes lightly marinated in chili-garlic paste for extra flavor
Step 1: Prepare the Paneer

- Cut paneer into 1-inch cubes.
- Lightly coat each cube with cornstarch, salt, and pepper. This gives the paneer a crispy exterior when fried.
- Heat 2 tablespoons oil in a non-stick pan over medium heat.
- Fry paneer cubes until golden brown and slightly crisp on all sides. Remove and set aside.
Pro Tip: Frying the paneer lightly, rather than deep-frying, gives it a restaurant-style texture while keeping it healthier.
Step 2: Prepare the Aromatics

- Heat 1 tablespoon oil in a pan over medium-high heat.
- Add minced garlic, grated ginger, and slit green chilies. Sauté for 30–60 seconds until aromatic.
- Add diced onions and bell peppers. Stir-fry for 2–3 minutes until slightly tender but still crunchy.
Pro Tip: Quick stir-frying keeps vegetables crisp-tender, balancing the soft paneer cubes.
Step 3: Make the Sauce

- In a small bowl, mix 2 tablespoons soy sauce, 1 tablespoon chili sauce, 1 teaspoon vinegar, ½ teaspoon black pepper, and 1 teaspoon sugar.
- Add 1–2 tablespoons water to the sauce mixture for a slightly moist texture.
- Pour the sauce over the sautéed vegetables and toss gently to coat evenly.
Pro Tip: Adjust the chili sauce and green chilies to control the heat level, making it suitable for your taste preferences.
Step 4: Toss Paneer with Sauce and Vegetables

- Add the fried paneer cubes to the pan with vegetables and sauce.
- Gently toss everything together for 2–3 minutes on medium-high heat.
- Ensure each paneer cube is coated evenly with the sauce without breaking.
Pro Tip: Use a gentle folding technique to maintain the paneer’s shape and crispiness.
Step 5: Adjust Consistency and Seasoning
- If the dish is too dry, add a teaspoon of water at a time to achieve a slightly saucy coating.
- Taste and adjust seasoning with salt, pepper, or a pinch of sugar to balance flavors.
- Simmer for 1–2 minutes to let the flavors meld together perfectly.
Pro Tip: Paneer Chilli Dry should have a lightly saucy consistency, with a perfect balance of heat, tanginess, and slight sweetness.
Step 6: Garnish the Dish

- Transfer the paneer chilli dry to a serving dish.
- Garnish with chopped spring onions, fresh coriander leaves, or sesame seeds.
- Serve immediately while hot for the best flavor and texture.
Optional: Squeeze a little fresh lime juice over the top for extra tang and freshness.
Step 7: Serve and Enjoy
- Serve as an appetizer, snack, or side dish with fried rice, noodles, or steamed rice.
- Pair with hot sauce, soy sauce, or green chutney for an extra flavor kick.
- Enjoy this restaurant-style Indo-Chinese dish in the comfort of your home.
Pro Tip: Paneer Chilli Dry tastes best when served immediately, maintaining its crisp texture and vibrant flavors.
Tips for Perfect Paneer Chilli Dry in American Kitchens
- Use firm paneer: Ensures the cubes hold shape while stir-frying.
- Control spice levels: Adjust green chilies and chili sauce to suit family preferences.
- Keep vegetables crisp: Quick stir-frying preserves color, crunch, and nutrients.
- Gently fold: Avoid breaking paneer cubes while mixing with sauce.
- Meal prep friendly: Fry paneer in advance; combine with freshly cooked sauce and vegetables before serving.
Why Paneer Chilli Dry Is a Superfood Meal
- Paneer: High in protein, calcium, and essential amino acids.
- Bell peppers and onions: Rich in fiber, vitamins, and antioxidants.
- Garlic and ginger: Boost immunity and aid digestion.
- Low oil cooking option: Light stir-frying keeps it healthier without sacrificing flavor.
This dish is perfect for health-conscious Americans, vegetarians, and families looking for a quick, protein-packed, and flavorful Indo-Chinese meal.
Serving Suggestions
Paneer Chilli Dry pairs beautifully with:
- Fried rice or steamed rice for a complete meal.
- Hakka noodles or chow mein for an Indo-Chinese feast.
- Spring rolls or vegetable dumplings as a starter platter.
- Fresh salad or raita for a cooling side.
Final Thoughts
With these 7 simple steps, you can create restaurant-style Paneer Chilli Dry at home, combining crispy paneer, crunchy vegetables, and a bold, spicy sauce. Whether you’re hosting friends, cooking a weeknight dinner, or preparing a flavorful snack, this dish is versatile, satisfying, and full of authentic Indo-Chinese flavor.
Bring the bold, tangy, and spicy flavors of Paneer Chilli Dry into your American kitchen and enjoy a homemade version of your favorite restaurant appetizer anytime.