Cut paneer into cubes. To a large bowl, add 3 tablespoons cornstarch, 3 tablespoons flour along with salt, pepper.

Add water to make a free-flowing batter, it should neither be thick nor thin. I added little less than 1/2 cup water here. Meanwhile, heat oil in a wok/Kadai on medium heat to deep fry the paneer.

Dip each paneer cube into the batter. And then add them into the hot oil.

Fry until the paneer pieces get golden brown and crispy from both sides. Drain the fried paneer on a paper towel.

Meanwhile, in a measuring jar or bowl, add soy sauce (I use regular and dark soy sauce, 1 tablespoon each), vinegar, green chili sauce, tomato ketchup, and sugar. Mix until all is well combined and set aside.

Also, mix 1 tablespoon cornstarch with 3 tablespoons water until cornstarch dissolves completely and set aside.

Heat oil in a wok on high heat. Once the oil is hot, add the ginger, garlic, green chili. Saute for 1 minute.

Then add the quartered onion and capsicum. Cook for 2 minutes. Veggies should remain crunchy and you should cook on high heat.

Add in the prepared sauce and mix and lower heat to medium.

Then add in the prepared cornstarch slurry. Mix well, sauce will begin to thicken. Add an additional 3 to 4 tablespoons of water.

Stir in the fried paneer cubes. Toss to combine the paneer with the sauce.
Turn off heat. Garnish with fresh coriander leaves.

Serve Chilli Paneer with noodles or fried rice!