Cut paneer in to 1 inch cubes.
Heat oil or ghee in a non stick tawa and add paneer to it.
When the paneer starts becoming pale yellow in color add salt and 1/2 teaspoon pepper powder and heat again till all paneer cubes turn to pale yellow color.
Keep the paneer aside and make paste with 1 tomato, ginger and garlic without adding water.
Heat oil or ghee in the pan again and fry onion.
Fry in high flame for ten minutes and after that add the finely chopped green chilly, capsicum and tomato.
Fry for another ten minutes and then add salt and turmeric powder to it.
Heat for 5 minutes in medium flame.
Add the tomato,ginger garlic paste to it, mix well and heat for 5 minutes.
Add the paneer cubes kept aside and fry until it becomes completely dry.
Notes
:- This dish is a simpler version of chilly paneer where we dont ve to use sauce or vinegar.
:- If you prefer it to be more spicy you may add one tsp pepper powder at last and heat for 5 minutes.
:- Adding pepper powder while frying paneer gives a special flavour to the dish.