Paneer Chilly Gravy is a popular Indo-Chinese dish which is best served with fried rice and hakka noodles. Paneer Chilly can be made as dry or a gravy dish Dry paneer chilly is served as a starter whereas paneer chilly gravy is served as a main course dish alongwith fried rice or noodles. Here’s the recipe for Paneer Chilly Gravy:


200 grams paneer, cut into small cubes (How to make paneer at home)
1 tsp ginger garlic paste
2 tsp soya sauce
2 ½ tbsp cornflour
2 tbsp oil
1 tsp finely chopped garlic
1 tsp finely chopped ginger
2 white bulbs of spring onion
2 green chillies, cut lengthwise
½ cup chopped spring onion (green part)
1 capsicum, cubed
1 tbsp red chilly sauce
a tsp of tomato sauce
Salt as per taste

Method :

  • In a mixing bowl, add ginger garlic paste, 1 tsp soya sauce and mix well.
  • Add paneer cubes and mix.
  • Add 1 tbsp cornflour and give a gentle mix ensuring that the paneer cubes are coated well with cornflour.
  • Keep this aside.
  • Heat 1 tbsp oil in a pan.
  • Shallow fry the paneer.
  • Keep the fried paneer aside.
  • Heat 1 tbsp oil in a pan.
  • Add chopped garlic and chopped ginger.
  • Saute for few seconds.
  • Add green chillies and  chopped spring onions (white part).
  • Saute for few seconds.
  • Add ¼ cup chopped spring onion (green part) and saute for few seconds.
  • Now add capsicum cubes and saute.
  • Add soya sauce, red chilly sauce and give it a mix.
  • Now, in  a bowl add 1 ½ tbsp cornflour, little water and mix it well to make a thin slurry.
  • Add the cornflour slurry into the pan and mix.
  • Further, add shallow fried paneer, salt, ¼ cup of water and mix.
  • Finally, add half of the remaining spring onion greens, tomato sauce and mix.
  • Cook for a minute.
  • Garnish with spring onion greens and serve hot with fried rice.


  • You can adjust the quantity of water added to make the gravy, as per the consistency required by you.
  •  If you wish to make the dry version of paneer chilly, then skip the cornflour slurry and water. The rest of the recipe remains the same.
  • A teaspoon of vinegar can also be added once the gravy is done.