This saucy chilli paneer is spicy, sticky, sweet, and packed with flavor—perfect over rice or noodles for an easy Indo-Chinese meal that tastes better than takeout.
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.
Notes
You can use store-bought or homemade paneer—just make sure it’s dry before frying.
Want to bulk it up? Add ½ a green bell pepper for extra crunch.
Adjust the spice level easily—add more sriracha or Kashmiri mirch for extra heat.
This recipe leans toward the saucy version of chilli paneer. To make it dry, reduce the water and simmer until thick.
For best texture, serve immediately. Paneer tends to firm up the longer it sits.