This Chilli Paneer Dry recipe is a classic Indo-Chinese dish made with crispy paneer cubes, crunchy peppers, and onions tossed in a spicy, tangy, and slightly sweet sauce. Quick to make in under 30 minutes, this dry version is a crowd-favorite starter or snack that pairs perfectly with fried rice, Hakka noodles, Fried Rice, or even as a party appetizer.

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What Is Chilli Paneer
Chilli Paneer is one of my all-time favorite dishes to order at Asian restaurants back in India, and it also happens to be one of the most popular vegetarian Indo-Chinese recipes you'll find on the streets. From roadside food stalls to upscale restaurants, Paneer Chilli is loved everywhere.
What makes street-style chilli paneer so addictive is its bold flavor profile-it's sweet, spicy, tangy, and smoky all at once. Crispy golden paneer cubes are tossed with peppers, onions, and a garlicky chilli sauce, creating the perfect balance of textures and flavors.
There are two main ways to enjoy it:
- Chilli Paneer Gravy - saucy and perfect to pair with fried rice, Hakka noodles, or even steamed rice.
- Dry Chilli Paneer - a stir-fried version often served as a street-style appetizer or starter, and just as delicious on its own.
Whether you prefer the gravy or the dry version, this restaurant-style chilli paneer dry recipe always hits the spot-comforting, flavorful, and incredibly satisfying!
Chilli Paneer Dry Recipe
My version is the dry chilli paneer recipe, where cubes of paneer (Indian cottage cheese) are lightly fried until golden and crisp, then tossed in a little sweet, spicy, and garlicky chilli sauce. The result? Irresistibly crispy paneer coated in bold Indo-Chinese flavors that taste just like your favorite restaurant-style dish.
I like to call this my "quick and lazy" version because it requires minimal prep yet delivers maximum flavor and satisfaction. Ready in under 30 minutes, it's the kind of easy chilli paneer recipe you'll want to make again and again-perfect for busy weeknights, party appetizers, or even as a street-style snack.
There may be countless versions of this fusion recipe online, but this is how I make it at home. It's simple, fuss-free, and every bite is absolutely delicious-crispy on the outside, soft on the inside, and packed with that sweet-spicy-tangy magic that makes this restaurant-style Chilli Paneer such a favorite.
Why Make It
- 🥗 100% Vegetarian - A classic vegetarian Indo-Chinese paneer recipe that's loved by all ages.
- 🚫 No MSG or Additives - Made fresh at home, healthier than restaurant takeout.
- 🍢 Versatile Dish - Enjoy it as a snack, appetizer, or side with fried rice or noodles. Great for parties, weeknight dinners, or even as a street-style treat.
- ⏱️ Quick and Easy - Ready in just 30 minutes with minimal prep.
- 👩🍳 Beginner-Friendly - Requires only simple Indian pantry staples.
- 🥦 Healthy Twist - Shallow-fried instead of deep-fried, using fresh and wholesome ingredients.
- 🌶️ Crispy and Flavorful - The perfect balance of sweet, spicy, and tangy flavors with that restaurant-style honey chilli paneer crunch.
- 🔄 Customizable - Adjust spice levels, add veggies, or make it gravy-style to suit your taste.
Ingredients needed 🧾
🧀 Paneer - You can use fresh homemade or store-bought paneer (Indian cottage cheese) for this fusion recipe. It's easily available at Indian grocery stores, Whole Foods, Sprouts, and sometimes even at Costco. Fresh paneer gives a softer texture, while the refrigerated one firms up nicely when fried but also has the risk of becoming hard and chewy.
🌽 Cornstarch (or Cornflour) - This is what makes the paneer cubes crispy when shallow-fried. It also helps the sauce stick to the paneer and veggies, giving you that authentic restaurant-style dry chilli paneer texture.
🫑 Vegetables - Bell peppers (capsicum) and onions are classic in this dish. They add crunch, color, and balance out the spicy, tangy flavors of the sauce.
🍯 Sauces and Pastes - A mix of Coconut Aminos (or soy sauce), ginger paste, chili sauce or schezwan, hot honey (or regular honey), and rice vinegar creates the signature sweet, spicy, and tangy Indo-Chinese sauce.
🌿 Aromatics - Fresh garlic, green chillies, and sesame seeds infuse Chilli Paneer with smoky, garlicky flavors. Chopped cilantro and spring onions are perfect garnishes to brighten the finished dish.
🛢️ Cooking Oil - I used sesame oil to to cook this Indo-Chinese fusion dish because it enhances the Asian-inspired flavors of this dry chilli paneer. You can also use any neutral cooking oil if that's what you have on hand.
How to make it 🔪
To Fry the Paneer
- If you're using store-bought paneer, especially the kind that's refrigerated, soak the block in hot water for about 10 minutes. This simple step softens it and gives you that perfect texture for making crispy chilli paneer.
- Once softened, cut them into bite-sized 1-inch cubes. Similarly, chop the bell peppers and onions into even-sized pieces so they cook quickly and look uniform in the dish.
- Transfer the paneer cubes to a mixing bowl. Add cornstarch (or corn flour), a pinch of salt, and black pepper.
- Gently toss until each cube is lightly coated. Let it rest for about 5 minutes-this helps the coating stick and ensures you get that crispy paneer finish when frying.
- Heat a little sesame oil (or any neutral oil) in a wide pan. Place the cubes in a single layer-don't overcrowd the pan. Shallow-fry the paneer cubes until golden and crisp, turning them occasionally to cook evenly on all sides. Be patient and avoid flipping too early; once you notice the edges browning, that's your cue to turn them.
- Remove and transfer the fried cubes to a plate lined with paper towels. Your golden, crunchy paneer cubes are now ready to be tossed into the spicy, tangy sauce.
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To Prepare the Sauce
- In a small mixing bowl, combine Coconut Aminos (or soy sauce) with ginger paste, chili sauce, hot honey (or regular honey), and rice vinegar. These ingredients form the base of the sweet, spicy, and tangy sauce that makes this dish so irresistible.
- Whisk everything together until smooth and well-blended. This quick marinade infuses the Chilli Paneer with bold Indo-Chinese flavors and helps coat the paneer and veggies evenly when you stir-fry them. Set it aside until ready to use.
To Prepare Chilli Paneer
- In the same pan with the leftover oil, add minced garlic, sliced green chillies, chopped scallions, and a sprinkle of sesame seeds. Sauté until fragrant-this is what gives chilli paneer dry that signature smoky, garlicky aroma found in Indo-Chinese restaurants.
- Next, toss in the bell pepper and onion cubes. Stir-fry on high heat for 1-2 minutes so they stay crisp yet slightly charred.
- Add the fried paneer cubes back into the pan and give everything a quick toss.
- Pour in the prepared sweet, spicy, and tangy sauce. Mix well so that everything is evenly coated. Let it cook on high flame for about a minute-this helps the sauce cling to the paneer without turning soggy.
- Finally, garnish with freshly chopped cilantro and the remaining scallions for a burst of freshness.
- Give it a quick stir, then take it off the flame. I didn't need to use any additional salt in this recipe because of all the sauces. Taste and add salt if needed.
Serving suggestions 🍽
Dry Chilli Paneer is one of those magical Indo-Chinese dishes that's as flexible as it is flavorful. Here are different ways to serve and enjoy it - all delicious and perfect for various occasions:
- Eat it solo - I often enjoy it straight from the plate as a snack or small meal. Its crispiness and bold flavors make it perfect on its own.
- Mix with rice - Toss it into steamed basmati rice, Jeera Rice, or cauliflower rice to turn it into a satisfying main dish.
- Pair with noodles or fried rice as a side dish - Combine with Hakka Noodles, Chili Garlic Noodles, Schezwan Noodles, Cilantro Noodles, or vegetable fried rice, Broccoli Fried Rice, Kimchi Fried Rice, and Mushroom Fried Rice to make a fusion Indo-Chinese meal.
- Use in wraps or tacos - Stuff it into lettuce wraps, tortillas, or flatbreads for a spicy, crunchy wrap.
- Top your pizza - Use it as a topping for cheese pizza (especially as a desi-inspired pizza). It adds color, texture, and punch.
- Serve alongside Indian mains - Believe it or not, it also complements Indian dishes beautifully. It pairs well with roti, naan, pulao, or even dal and rice.
- Party starter / appetizer - Present it as finger food-skewer 2-3 paneer cubes and veggies with toothpicks or small skewers. Garnish with fresh cilantro and spring onions, and let guests pick and munch.
- Fusion bowls or salads - Turn it into a bowl meal with greens, quinoa or rice, and a light dressing. Or add it to a crunchy tomato salad or a dense bean salad for a spicy twist.
Whether you serve it as a dry Indo-Chinese starter, a main, or a party appetizer, this chilli paneer recipe adapts beautifully without losing any of its signature sweet-spicy-tangy flavors.
If you enjoyed this Indo-Chinese starter, you'll also love my Mushroom Kalan recipe - another fusion street-style favorite that's just as bold, spicy, and satisfying!!
Top recipe tips 💭
If you don't have corn starch on hand, don't worry-you can easily substitute it with arrowroot powder, cornflour, rice flour, or even potato starch. To make the paneer coating more flavorful, mix in some black pepper and paprika along with the flour. For extra depth, you can also add dried or fresh basil to the hot and sweet chilli sauce. If you want that authentic Indo-Chinese street food taste, cook paneer chilli in a wok on high flame-it gives the dish that signature smoky, restaurant-style flavor that makes it irresistible. If too hot, add more honey; if bland, add vinegar or chili sauce to get the desired flavor.
Recipe FAQs 📖
Getting the texture of Indian cottage cheese right is key to a good chilli paneer recipe. The cubes should be firm enough to hold their shape but still soft and tender when you bite into them.
If you're using the frozen, make sure to thaw it completely before cooking.
For homemade Indian cottage cheese, I recommend cutting it into cubes and freezing it overnight-this helps it stay intact without crumbling while frying.
If you're using store-bought one, soak it in hot water for about 10 minutes. This simple step softens it and gives you that perfect texture for making crispy chilli paneer.
Sometimes it can turn hard after frying, but don't worry! Just soak the fried cubes in hot water for about 10-15 minutes to bring back their softness. Drain them well before tossing in the sauce so they stay flavorful and not soggy. Following these steps will ensure your chilli paneer comes out with the perfect restaurant-style texture every time.
Absolutely! If you're looking for a lighter, healthier version of Indo-Chinese Chilli Paneer, you can easily bake or air fry the cubes instead of deep-frying.
To bake, dip the cubes in cornstarch, arrange them on a lined baking tray, spray oil, and grill in a preheated oven at 450°F (230°C) for 5-6 minutes, flipping halfway for even crispiness.
For air frying, spray or brush the coated cubes with a little oil and cook them at 375°F (190°C) for 10-12 minutes, shaking the basket once in between.
Both methods give you the desired crispy texture without all the excess oil, while still delivering that delicious restaurant-style texture.
Of course, you can also deep-fry if you prefer the classic street-style flavor.
The best part? No matter which cooking method you choose, Indian cottage cheese still soaks up all those bold, sweet, spicy, and garlicky flavors of the chilli sauce beautifully.
Making vegan chilli paneer is super simple, and the flavors are just as bold and satisfying as the original! The best swap is extra-firm tofu-it holds its shape well and soaks up the sweet, spicy, and garlicky sauce beautifully. Press the tofu to remove excess water, cut it into cubes, coat with cornstarch, and either deep-fry, shallow-fry, bake, or air-fry until golden and crispy.
To keep this recipe completely plant-based, replace honey with vegan honey, maple syrup or sweet seasoning sauce. Toss the crispy tofu in the same homemade chilli sauce, and you've got yourself a delicious Vegan Chilli Tofu that tastes amazing!
The rest of the ingredients in this recipe are naturally vegan-friendly, so with these easy swaps, you'll have a dairy-free, restaurant-style Indo-Chinese appetizer ready in no time.
If you have leftover chilli paneer dry, here's how to store it the right way so it still tastes great later. Refrigerate it in an airtight container for up to 2 days. Keep in mind that Indian cottage cheese tends to firm up in the fridge, so always reheat it in a microwave or hot pan before serving to bring back its softness.
You can also freeze it, either before adding the sauce or after tossing it in. However, freezing may slightly alter the texture of the paneer and veggies. If you want to prep ahead, a better option is to freeze just the sauce. The sweet, spicy, and garlicky sauce keeps well in the fridge for 5-6 days or in the freezer for a month.
This versatile sauce can also be used in other recipes:
Use it as a dip for Scallion Pancakes, momos, or wontons
Toss it with noodles, fried rice, or pasta
Drizzle it over salads, roasted veggies, or grain bowls for a flavor boost
That way, nothing goes to waste and you get multiple delicious meals out of one batch!
If you love saucy dishes, you'll also enjoy the chilli paneer gravy version-it's just as flavorful but with a thick, luscious sauce that pairs perfectly with fried rice, noodles, or even steamed jasmine rice.
To make chilli paneer with gravy, prepare the recipe the same way as the dry version, but add a cornstarch slurry (cornstarch mixed with water) along with some extra water or vegetable stock to the pan after tossing in the fried Indian cottage cheese and veggies. Stir well on medium-high heat until the sauce thickens and coats everything beautifully.
The result is a restaurant-style Indo-Chinese chilli paneer gravy that's sweet, spicy, tangy, and garlicky-perfect for when you want something a little more hearty and saucy than the dry appetizer version.
More Paneer recipes
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Recipe 📖
Homemade Chilli Paneer Dry - Street Style Indo-Chinese Snack
Equipment
Ingredients
To Prep The Paneer
- 12 oz paneer
- 2 tablespoon corn starch
To Prepare The Sauce
- 1 tablespoon Coconut Aminos
- 1 tablespoon rice vinegar
- 1 tablespoon hot honey or regular honey
- 1 tablespoon chili sauce
- 1 tablespoon ginger paste
To Prepare Chilli Paneer
- 3 tablespoon sesame oil
- 8-10 cloves garlic
- 1 tablespoon sesame seeds
- 2-3 green chillies
- 1 bell pepper
- ½ onion
- 2-3 tablespoon cilantro chopped
Instructions
To Fry the Paneer
- If you're using store-bought paneer, especially the kind that's refrigerated, soak the block in hot water for about 10 minutes. This simple step softens it and gives you that perfect texture for making crispy chilli paneer.
- Once softened, cut them into bite-sized 1-inch cubes. Similarly, chop the bell peppers and onions into even-sized pieces so they cook quickly and look uniform in the dish.
- Transfer the cubes to a mixing bowl. Add cornstarch (or corn flour), a pinch of salt, and black pepper.
- Gently toss until each cube is lightly coated. Let it rest for about 5 minutes-this helps the coating stick and ensures you get that crispy paneer finish when frying.
- Heat a little sesame oil (or any neutral oil) in a wide pan. Place the paneer cubes in a single layer-don't overcrowd the pan. Shallow-fry the cubes until golden and crisp, turning them occasionally to cook evenly on all sides. Be patient and avoid flipping too early; once you notice the edges browning, that's your cue to turn them.
- Remove and transfer the fried cubes to a plate lined with paper towels. Your golden, crunchy paneer cubes are now ready to be tossed into the spicy, tangy sauce.
To Prepare the Sauce
- In a small mixing bowl, combine Coconut Aminos (or soy sauce) with ginger paste, chili sauce, hot honey (or regular honey), and rice vinegar. These ingredients form the base of the sweet, spicy, and tangy sauce that makes chilli paneer so irresistible.
- Whisk everything together until smooth and well-blended. Set it aside until ready to use.
To Prepare Chilli Paneer
- In the same pan with the leftover oil, add minced garlic, sliced green chillies, chopped scallions, and a sprinkle of sesame seeds. Sauté until fragrant-this is what gives Indo-Chinese dish that signature smoky, garlicky aroma found in restaurants.
- Next, toss in the bell pepper and onion cubes. Stir-fry on high heat for 1-2 minutes so they stay crisp yet slightly charred, just like authentic street-style chilli paneer.
- Add the fried paneer cubes back into the pan and give everything a quick toss.
- Pour in the prepared sweet, spicy, and tangy sauce. Mix well so the crispy paneer and veggies are evenly coated. Let it cook on high flame for about a minute-this helps the sauce cling to the paneer without turning soggy.
- Finally, garnish with freshly chopped cilantro and the remaining scallions for a burst of freshness. Give it a quick stir, then take it off the flame. I didn't need to use any additional salt in this recipe because of all the sauces. Taste and add salt if needed.
- Serve hot as an appetizer or side dish with fried rice or noodles.
Bintu | Recipes From A Pantry says
What a tasty and flavourful snack!I love paneer but never think to snack on it - will definitely be giving this a try though!
Priya says
Please do try it. its yum! 🙂
Rika says
This is something that my husband and I always order at restaurants. It looks so good and I love spicy.
Priya says
Yes, plus its so simple and easy to make at home! Do give it a try. Thank you
veenaazmanov says
A dish well saved for my Vegetarian friends. This Bowl looks flavorful and a total comfort meal too.
Priya says
Thanks Veena!
Beth says
Oh my goodness! I can’t wait to try this! Looks amazing and so tasty! I’m so excited to give this a try!
Priya says
Thank you so much
Agnieszka says
I love paneer and this recipe really brings it to another level!
Priya says
Thank you so much