Make the chili paste: Take the soaked red chilis (reserve the water), garlic cloves, ginger, and blend until smooth. Set aside.

Make the sauce: Combine all of the ingredients listed under sauce and set aside.

Mix the batter for the paneer: Combine the all purpose flour, corn starch, salt, pepper and mix it well. Slowly add the ½ cup of water until you get a batter that is neither too thick nor too thin. Add the paneer cubes and coat them well.

Heat a small pot and fill it with about 2 inches of oil. Once the oil is hot, use a fork or spoon to individually scoop each cube of paneer into the hot batter. Fry the paneer until it is golden brown. Drain on paper towels.

Make The Gravy: In a large skillet or wok, heat 2 tbsp of oil on medium low heat. Add the garlic, ginger, scallion whites and cook for 2-3 minutes until fragrant but not at all browned.

Turn the heat up slightly and add the diced onions and bell peppers, and saute until just slightly softened but still crisp. Add 1 tbsp of the chili paste and continue to cook for 2-3 minutes.

Turn the heat to low and when the pan is no longer too hot, add the sauce, ½ cup of water and slowly bring it to a slow simmer. As it simmers, mix in the corn starch mixture slowly while stirring so it doesn't clump.

Add the paneer, mix well and turn the heat off. Add the cilantro, scallions. Taste for salt, spice, heat and adjust.