Make a semi-thick paste with the ingredients for marinade.
Dunk the paneer pieces in and let them soak in the marinade.
Add 3-4 tbsp oil in a pan and shallow fry the paneer pieces, turning them over when the sides are brown.
Drain and set aside.
In the same pan, add chopped onions, green chillies, and capsicum.
Cook until the onions turn transparent, about 2-3 mins.
Next, turn the flame to high and add soya sauce, green chilli sauce, ginger garlic paste, sugar and tomato paste.
Stir-fry on high for about 30 seconds until well blended and turn the flame to medium-low.
Add the fried paneer cubes and the cornflour-water paste. Taste and adjust salt (since the sauces will have salt).
Stir and cook for another 3-4 mins until the sauce comes around and thickens due to the cornflour.
Serve Chilli Paneer steaming hot as an appetiser