Homemade Chilli Paneer Dry – Street Style Indo-Chinese Snack

Street-style chilli paneer dry recipe with golden paneer cubes and tangy sauce.

Homemade Chilli Paneer Dry – Street Style Indo-Chinese Snack

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.

Course Appetizer, Side Dish, Snack

Cuisine Asian, Indian, Indo Chinese

Prep Time 10

Cook Time 20

Total Time 30

Servings people

Calories 419.98kcal

Author Priya Lakshminarayan

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.

Notes

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 this dish in a wok on high flame—it gives the dish that signature smoky, restaurant-style flavor that makes it irresistible.

Nutrition