Chilli Paneer

This chilli paneer features crispy paneer cubes, tossed with onions and bell peppers in a flavorful spicy sauce. You can make this easy and delicious chilli paneer recipe within 25 minutes. 

For more easy and delicious paneer recipes, check out our crispy paneer fingers (air fryer recipe) and paneer manchurian. 

If you ever want a wholesome dish that is quick and flavorful, then this chilli paneer recipe is for you!

This chilli paneer stir fry is simple to make, wholesome and requires no deep frying!... making it a healthier version of a classic restaurant style chilli paneer recipe.

Perfectly paired with rice, vegetable hakka noodles or tandoori butter naan.

Jump to:

• Why You’ll Love This Recipe
• What is Chilli Paneer?
• Ingredients You'll Need
• Substitutions and Variations
• How to Air Fry Paneer
• How to Make Chilli Paneer
• Expert Tips
• How to Serve Chilli Paneer Curry
• Recipe FAQs
• Suggested Asian Recipes
• Chilli Paneer

Why You’ll Love This Recipe

• Wholesome, satisfying and healthier option: no deep frying and no added plain flour (or all purpose flour). Plus this recipe incorporates vegetables in the stir fry.
• Simple: quick and easy to make
• Versatile: can be used in wraps, served with rice or other Indian flatbreads like crispy plain paratha and roti (chapati).

What is Chilli Paneer?

• “Chilli Paneer” or “paneer chilli” is a popular Indo-Chinese dish often served in many restaurants (either as an appetizer/starter or main course). 
• This dish is typically made by stir frying cubes of fried paneer (Indian cottage cheese) in a spicy, tangy and flavorful sauce, with a mixture of peppers, onions, chillies (and/or lettuce and celery). 
• Chilli paneer can be made in different ways, including a gravy version, semi-dry and dry version, depending on preference and how you are serving this dish.
• Chilli paneer is often served with other dishes from the Indian or Chinese cuisine, including noodles and stir fries. 

Ingredients You'll Need

• Paneer: you can either use homemade paneer or store-bought fresh paneer (look for high quality paneer). If you prefer using store-bought paneer, use either pre-chopped paneer (you may require to separate the cubes in a bowl) or blocks of paneer which you can chop into cubes (1-1.5 inch or as desired).
• Garlic and ginger: I recommend making a garlic-ginger paste (blitz garlic cloves and ginger in a stick blender, with 1-2 tablespoon water if required to make a smooth paste)
• Green chillies: s​liced and added for spice in this dish 
• Yellow/brown onions: these are sliced and cooked for 5 minutes to flavour this dish 
• Spring onions/green onions/scallions: these are added with the sliced onions to add flavour in this dish 
• Bell peppers: use a mixture of red and green bell peppers
• Coriander (or cilantro): fresh coriander brings a refreshing taste to this dish. Chop the coriander/cilantro before adding to this dish added for a refreshing taste in this dish 
• Seasoning: dark soy sauce, salt and lemon juice are used in the stir fry to season this dish.
• Tomato puree/tomato paste (double concentrate): use tomato puree (which is also known as tomato paste in many countries including the US). This is the double concentrate tomato paste, which adds a rich tomato base to this dish (I am not referring to tomato passata or pureed tomatoes which come in a jar).
• Oil: I recommend using extra virgin olive oil (for the added health benefits), you can also use regular olive oil, toasted sesame oil or avocado oil if preferred. 
• Paneer coating before air-frying: this optional but recommended for flavor and texture - all you need is turmeric powder, red chilli pepper or paprika powder and oil (I use olive oil) to coat the paneer before air-frying. 

See recipe card for a full list of ingredients and quantities.

Substitutions and Variations

• Extra crispy: use corn flour or corn starch to coat the paneer pieces, for an extra crispy texture. 
• Gravy version: for a saucier version, add 1 tablespoon of tomato sauce or red chilli sauce and a little water. 
• Extra heat: add an extra chilli and ¼ teaspoon black pepper powder.
• Vegan: You can substitute the paneer with extra-firm tofu to make this dish vegan-friendly. Press the tofu before chopping into cubes and air-frying for the best results.  

How to Air Fry Paneer

Step 1: Coat paneer in spices. Start by preheating the air-fryer to 180C/350F. In a medium mixing bowl, add the chopped paneer cubes, turmeric and red chilli powder. Toss the paneer to evenly coat in spices.

Step 2: Coat paneer in oil. Add olive oil and toss again to evenly coat the paneer.  

Step 3: Air fry paneer until crispy and golden. Line the preheated air-fryer tray with baking/parchment paper, add the paneer (making sure the paneer cubes are spaced out and not overlapping). Air fry for 10-15 minutes, or until crispy and lightly golden brown. Using a spatula, transfer the paneer onto a plate lined with kitchen/paper towel(s) to drain any excess oil and set aside.

Alternatives: if you do not have an air fryer, you can bake at the paneer (for 15-20 minutes) at 190C/370F or shallow fry in a non-stick wide frying pan, until crispy and golden. Alternatively, shallow fry in a medium pan with 2 tablespoon hot oil, on high heat.​

How to Make Chilli Paneer

Step 1: Heat oil in a medium/large non-stick pan, then add the garlic-ginger paste and sauté for 30 seconds on medium heat. Add slices green chillies and cook for another 30 seconds.

Step 2: Add the sliced onions and chopped spring onions/scallions and cook for 5 minutes, stirring intermittently (every 30 seconds – 1 minute). 

Step 3: Add the soy sauce and tomato puree/tomato paste (concentrate), stir and cook for another minute. 

Step 4: Stir in the fresh coriander/cilantro and bell peppers, add salt and water and continue cooking for 2 minutes.

Step 5: Add the air fried paneer cubes, stir to evenly combine. 

Step 6: Add lemon juice. Cook for another 30 seconds. Serve and enjoy.

Expert Tips

• Air fry paneer: I recommend air frying the paneer for the best texture (paneer which is crispy on the outside and moist on the inside). Air frying also reduces the amount of oil needed compared with deep-frying and more cost-effective than baking in an oven.
• Garlic-ginger paste: to make the garlic-ginger paste for this recipe I used 19 cloves of garlic and a small chunk of ginger (6g ginger). Add the garlic and ginger in a small stick blender and blitz into paste (you can add 1-2 tablespoons of water to help make the paste smooth). This entire paste was added to the stir fry. If you prefer a milder flavor, add less garlic or ginger, alternatively add a smaller quantity of the paste and freeze the remaining paste.
• Prepare ingredients before cooking: slice the onions, peppers and chillies, prepare the garlic-ginger paste etc in advance, this makes it easier to whip up the stir fry as it comes together quickly in the pan. 
• Seasoning: Use dark soy sauce for a richer flavor. Avoid adding salt until the end, as soy sauce often contain added salt.

How to Serve Chilli Paneer Curry

This chilli paneer is perfect as a snack, appetizer or side dish – perfectly served with dishes including lemon rice and Gujarati kadhi (with rice) or our zucchini noodle stir fry.

Chilli paneer also goes well with naan including our easy garlic naan or whole wheat naan. Enjoy in a wrap and serve with salad leaves and fresh mint chutney!

Recipe FAQs

Suggested Asian Recipes

If you tried this Chilli Paneer Recipe or any other recipe on our website, please leave a 🌟 star rating and let us know how it went in the 📝 comments below. Thanks for visiting!