Take a mixing bowl. Cut Paneer into large cube size pieces.
Add kashmiri lal mirch powder, 1/2 tsp black pepper powder, salt, 1/2 tsp soya sauce. Mix well.
Add 2 tbsp corn flour and coat paneer with it.
Heat 2 tbsp oil in a kadhai/wok and spread it evenly
Put Paneer pieces in the kadhai and fry on medium flame.
Take out the fried pieces and add 3 tbsp oil on high flame.
Add chopped garlic, chopped ginger, chopped green chilli.
Add onion petals and chopped capsicum and toss on high flame
Add 1 tbsp soya sauce, red chilli sauce, schezwan chutney, degi mirch, 1/2 tsp black pepper powder, salt to taste and cook on low flame.
Mix 1 tbsp corn flour with 4 tbsp water to prepare a slurry and keep it aside.
Stir the curry and cook for 1 minute. Add 1.5 cup water. Let it come to boil once.
Now add the corn flour slurry to the gravy and cook on high flame to achieve the desired consistency.
Now add fried paneer cubes to the gravy and cook for 1 minute on high flame. Stir in between.
The chilli paneer gravy is ready now. Enjoy.