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chilli paneer gravy
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5 from 1 vote

Chilli paneer gravy recipe

Chilli paneer gravy is one of the perfect Indo Chinese side dish to go with noodles and fried rice. It is very important to balance the taste to get the perfect results.
Prep Time10 mins
Cook Time30 mins
Course: Side Dish
Cuisine: Indo Chinese
Servings: 3 People


  • 1.5 cups Paneer cubed
  • 1 Capsicum
  • 1 Onion
  • 2 Spring onion Sprigs
  • 1 Large variety chilli See notes for options
  • 1 teaspoon Black pepper powder
  • 1 tablespoon Chilli tomato sauce
  • 1.5 tablespoon Soya sauce
  • 1 teaspoon white Vinegar or 2 teaspoon lemon juice
  • 1 tablespoon Garlic Chopped
  • 1 tablespoon Ginger Chopped
  • 1 tablespoon Corn flour
  • 2 tablespoon Coriander leaves
  • 3 tablespoon Oil
  • Salt - As needed

For batter frying paneer cubes

  • 2 tablespoon All purpose flour
  • 1 tablespoon Rice flour
  • 1 tablespoon Corn flour
  • ¼ teaspoon Black pepper powder
  • Salt - As needed
  • Oil - for deep frying


Prep work

  • Chop capsicum and onion to cubes. I used tri colored capsicum for eye appealing result.
  • Finely chop the spring onion bottom part and leaf part separately. Slice the big chilli diagonally. Very finely chop ginger and garlic.

Deep fry paneer

  • Prepare a thick batter just enough to coat the paneer.
  • Take all the flours and other ingredients under the table 'Batter'
  • Dip each paneer cube and deep fry in hot oil and keep aside.
  • In a broad pan, add oil and add garlic, ginger and give a quick stir.
  • Add onions, capsicum, chilli and fry in high flame for a minute.
  • Pour sauces, vinegar, pepper powder and fry in low flame for 30 seconds.
  • Add 1 & ¾ cups (approx) of water and bring to boil. Sprinkle salt.
  • In goes the deep fried paneer cubes.

Make slurry

  • Dissolve 1 tablespoon corn flour with 3 tblsp of water and add it to the boiling gravy. Add lemon juice or vinegar while mixing. (I did not add)
  • Mix gently, it will thicken and lastly garnish with coriander leaves and green part of spring onion.
  • Switch off the flame.


  • Instead of long variety chilli I have used, you can also use 2-3 slit green chilli or finely chopped green chilli in this recipe. 
  • Adding lots of garlic and ginger is very important for this gravy. It should be seen in the gravy, so make sure you don't burn/ brown it while frying.
  • Drop one paneer cube at a time in hot oil while deep frying to prevent sticking together. I don't mean to deep fry one by one, just add in oil one by one and fry in batches.
  • The batter should be thick enough to coat the paneer cubes easily. Not too thick too.
  • Do not add more corn flour towards the end, or else you will end up having a blob instead gravy.
  • Add more pepper powder, its the only spice you have in spite of the big chilli which is not that spicy. You can add small green chillies too but this one lends nice flavor.
  • You can skip the deep frying part for paneer and add paneer cubes as such by soaking it in hot water.
  • You can add a teaspoon of lemon juice or vinegar along slurry too.