Boil the paneer cubes just for three minutes and strain it.
Heat oil in a pan, put paneer cubes and just fry for a minute,take it out and keep it aside.
Add chopped onion, ginger / garlic paste, turmeric, chilli powder into the same pan and saute it well.
Add the chopped tomato,fried paneer, green chillies and all the sauces, mix it well.
Mix 1tsp of cornflour with little water and pour this into the paneer mixture. Add a pinch of sugar and salt as required. Garnish with coriander leaves.
Kerala Style Chilli Paneer is ready to serve. It goes well with naan, chapathi or appam.