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two bowls of chili paneer, topped with sesame seeds for garnish

Restaurant Style Chili Paneer Recipe

This Restaurant Style Chili Paneer recipe is made with chunky cubes of paneer, fresh peppers, onions, and many spices. My homemade version uses an air fryer to cook the paneer which is a healthier alternative to store-bought chili paneer and delivers an irresistible balance of sweet and salty flavours.
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Total Time 45 minutes
Course Appetizer, Main Course
Cuisine Indian, Indo-chinese
Servings 4 servings

Ingredients
  

Marinade

  • 1 pack paneer (approx 350 grams, cut into 1 inch cubes
  • 2 tablespoon besan (gram flour)
  • 1/3 cup yogurt
  • 1 tablespoon olive oil
  • 1/2 teaspoon salt
  • 1 teaspoon Kashmiri chili powder * see notes
  • 1/4 teaspoon tumeric
  • 1/2 tablespoon kasoori methi (dried fenugreek)
  • 1 to 2 tablespoon water

Stir Fry

  • 1 tablespoon olive oil
  • 1 green bell pepper, cut into 1 inch pieces
  • 1 red bell pepper, cut into 1 inch pieces
  • 1 medium red onion, cut into 1 inch pieces
  • 1/2 tablespoon ginger and garlic paste

Sauce

  • 2 tablespoon low sodium soy sauce
  • 2 tablespoon honey
  • 1 1/2 tablespoon sambal oelek* see notes
  • 3 tablespoon ketchup
  • 2 tablespoon rice vinegar

Instructions
 

  • In a bowl, combine besan, yogurt, oil, paprika, turmeric, salt, fenugreek, and water. Whisk the mixture until it forms a smooth paste. If the batter feels too thick, gradually add more water until it reaches a consistency similar to pancake batter.
  • Add the cubed paneer to the bowl and toss until fully coated in the marinade. Let it sit for 15 to 30 minutes to allow the flavors to absorb. Arrange the paneer cubes evenly in the air fryer basket, set the temperature to 375°F, and cook for 8 to 10 minutes, or until the paneer is crispy and golden brown.
  • Chop the bell peppers and onions into 1 inch pieces. Heat a wok on medium heat, add oil, peppers, onions and ginger garlic paste.
  • While the vegetables are cooking, whisk together soy sauce, ketchup, rice vinegar, sambal oelek, and honey in a bowl. Once the vegetables are softened and slightly charred, lower the heat. Add the crispy paneer and the sauce, gently stirring to coat everything evenly. Let it cook for 3 to 5 minutes until the sauce warms and thickens. For a thicker gravy consistency, mix 1 teaspoon of cornstarch with 1 tablespoon of water and pour it into the wok. Once the sauce has thickened, remove from heat and top with sesame seeds and fresh green onions for extra flavor!

Notes

  • Substitute Kashmiri chili with paprika 
  • Substitute sambal oelek with sriracha 
Keyword air fried chili paneer, air fryer chili paneer, air fryer paneer, chili paneer, resturant chili paneer recipe