If there’s one Indo-Chinese dish I’ll never get tired of, it’s chilli paneer. If you’ve followed my page for a while, you’ll remember that chili paneer was actually my first video to go viral on TikTok, and this honey chili version is one of my favorite ways to make it. That spicy-sweet-tangy magic hits every time. Whether you’re team dry or team gravy (I see you both), this version is saucy, sticky, perfectly spicy, and comes together in under 30 minutes. It’s one of those recipes that feels restaurant-level, but you can totally pull it off on a random Tuesday night. No deep frying, no drama—just golden, crispy-edged paneer swimming in the most addictive sauce. And, if you’re in the mood for more street food – check out my Paneer Tikka Roll recipe!!
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Table of contents
What Is Chilli Paneer?
Chilli paneer is a beloved Indo-Chinese dish made with cubes of paneer (Indian cottage cheese) tossed in a bold, flavorful sauce. Think of it as the vegetarian cousin of chilli chicken—only it hits harder with that rich, creamy paneer texture.
There are two main versions:
Gravy or saucy chilli paneer: Great as a main, served with rice or noodles (this recipe leans saucy!).
Dry chilli paneer: More of an appetizer or snack, served without much sauce.
Key Ingredients (And Why They Matter)
Let’s break down the heavy-hitters:
- Paneer: The star! Soft and slightly chewy when pan-fried—it soaks up sauce like a champ. You can purchase paneer at the store or make my 2-ingredient homemade paneer instead!
- Red onion + jalapeño: Aromatic and spicy base. The onion adds a slight sweetness, while jalapeño brings heat.
- Garlic powder + Kashmiri mirch: Adds warmth and color without making it overly spicy.
- Ketchup + honey: The perfect sweet-savory base for that signature sticky Indo-Chinese flavor.
- Soy sauce + sriracha + rice vinegar: Your holy trinity of salty, spicy, and tangy. The vinegar cuts through the richness.
- Cornstarch: Helps thicken the sauce and gives it that glossy, takeout-style finish.
How to Make Chilli Paneer
- Fry the paneer: In a heavy-bottom pan, cook the paneer on medium heat until golden on all sides.
- Sauté aromatics: In a separate pan, heat oil and cook the onion until translucent. Add sliced jalapeño.
- Add sauce ingredients: Stir in garlic powder, Kashmiri mirch, ketchup, honey, soy sauce, sriracha, rice vinegar, cornstarch, and water.
- Simmer: Cook the sauce for 5 minutes until slightly thickened.
- Combine: Add the fried paneer into the sauce, stir to coat, and cover with a lid.
- Finish cooking: Let everything simmer until the water has mostly cooked off, stirring occasionally to prevent sticking.
Common Mistakes to Avoid + Pro Tips
- Don’t overcrowd the pan when frying paneer. Give it room to get golden!
- Use Kashmiri mirch, not regular chili powder—it adds color and flavor without burning your face off.
- Stir your sauce frequently once the paneer is added, or it may stick.
- Pro Tip: Want crispier paneer? Toss it in a little cornstarch before pan-frying.
Serving Suggestions
- Serve this chilli paneer recipe over plain steamed basmati rice, sautèed jeera rice, or with cheesy garlic naan!
- Add it to a wrap with some pickled onions and lettuce for a street-style roll.
- Great as a party snack or appetizer with toothpicks and a sprinkle of sesame seeds.
FAQ
Yes! Toss paneer in a little oil and cornstarch and bake/air fry at 400°F for 12–15 minutes until crispy. However, keep in mind, that the airfryer can dry out your paneer so it may not be as juicy and soft.
The easiest place to find paneer at a great cost is going to be your local Indian grocery store, but I have also seen it at popular chain grocers like Safeway.
Honey Chili Paneer
Ingredients
- 1/4 red onion
- 1/2 red bell pepper (sliced)
- 3/4 tsp garlic powder
- 1 tsp kashmiri mirch (or any red chili powder)
- 1/2 a jalapeño
- ~300 g paneer
- 2 tbsp ketchup
- 2 tbsp honey
- 1 tbsp corn starch
- 1 tbsp soy
- 2 tbsp sriracha
- 1 tsp rice vinegar
- 1 tbsp oil
- 1 c water
- cilantro (for garnish)
Instructions
- Fry the paneer: In a heavy-bottom sauce pan, add oil and fry the paneer over medium heat. Turn the pieces regularly to ensure even browning. Cook until golden and slightly crisp on the edges.
- Cook the aromatics: In a separate pan, sauté red onions and bell pepper in oil until they turn soft and translucent. Add sliced jalapeño and cook for another minute.
- Add sauce ingredients: Stir in garlic powder, Kashmiri mirch, ketchup, honey, soy sauce, sriracha, rice vinegar, cornstarch, and water. Mix well until everything is combined.
- Simmer the sauce: Let the sauce simmer over medium heat for about 5 minutes, allowing it to thicken slightly.
- Combine paneer and sauce: Add the fried paneer into the sauce, stirring to coat evenly. Cover with a lid.
- Cook down: Let it cook for a few more minutes, stirring occasionally, until most of the water has evaporated and the sauce becomes thick and glossy.
What did you think of this recipe?