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Ingredients
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Paneer and marinade
Sauce
To finish & garnish
Method
Paneer and marinade
Prepare paneer
Cut the paneer into 1–1.25 inch (2.5–3 cm) cubes. Pat dry with paper towels to remove excess moisture so the marinade and coating stick well.
In a mixing bowl combine the yogurt, cornstarch, kosher salt, and black pepper. Whisk until smooth. Add the paneer cubes and gently toss to coat evenly. Let rest 10 minutes while you prepare the sauce (or refrigerate up to 30 minutes).
Heat a nonstick skillet or heavy frying pan over medium heat and add 1 tablespoon of oil. Shake off excess marinade and place paneer cubes in a single layer. Pan-fry, turning occasionally, until golden and slightly crisp on all sides, about 8–10 minutes total. Work in batches if needed. Remove paneer to a plate and set aside.
Sauce
Add the chopped green chilies and diced red bell pepper. Sauté 2–3 minutes until pepper begins to soften but still retains some bite.
Stir in the tomato ketchup, soy sauce, red chili sauce, paprika, garam masala, and sugar. Cook and stir 1 minute to marry the flavors.
Add the water (about 4 tablespoons) and bring the mixture to a gentle simmer. Taste and adjust salt. If the sauce is too thin, simmer 1–2 minutes to reduce slightly; if too thick, add a tablespoon of water at a time.
Return the fried paneer cubes to the skillet and toss gently to coat with the sauce. Cook together 1–2 minutes so paneer absorbs flavor and the sauce clings to the pieces.
Turn off heat and stir in lemon juice.
To finish & garnish
Transfer hot garlic paneer to a serving platter. Sprinkle chopped cilantro, sliced green onion tops and toasted sesame seeds if using. Serve immediately as a starter with toothpicks or alongside naan or paratha.