Heat oil in a skillet. Add asafoetida, coriander seeds, and whole dried red chilies. Sauté until fragrant.

Add the bell peppers and tomatoes. Cook until they soften.

Add all the powdered spices and sauté well. Once the bell peppers are soft, add the tomato sauce and paneer. Cook until everything is well combined.

Your delicious restaurant-style chili paneer is ready to serve.