Enjoy the creamy, satisfying flavors of Chilli Paneer Dry, a classic vegetarian Indian paneer preparation. Packed with protein, this vegetarian dish is a family favorite that fits a balanced meal plan.
Pat paneer dry with paper towels, then toss cubes gently with cornstarch to evenly and thinly coat all sides.
Heat 2 tbsp oil in a large nonstick skillet over medium-high heat; once hot, add paneer and fry until all sides are golden and crisp, about 2-3 minutes per side. Remove to a plate and set aside.
Add remaining oil to the same skillet. Increase heat to high, add sliced onions, green and red bell peppers, and green chilis; sauté for 3-4 minutes, stirring constantly for even caramelization without burning.
Reduce heat to medium. Stir in soy sauce, tomato ketchup, vinegar, black pepper powder, and salt. Cook until sauce bubbles and slightly thickens, about 2 minutes.
Return fried paneer to the pan. Gently toss everything to coat, cooking just 1-2 minutes more, until sauce clings and paneer is heated through. Serve immediately for optimal texture.