Dust the paneer cubes with salt, chilly powder and cornflour. Lightly toss the paneer to coat the cornflour.
Heat oil in a deep vessel and deep fry the paneer till lightly brown on the outside.
Remove and keep aside.
Dissolve kashmiri chilli powder in 2 tbsp of water. In a separate pan drizzle oil, add ginger & garlic chopped. Quick stir and diced onions, capsicum, green chilly slit and give a toss for a minute. Add the dissolved chilli powder and give a quick stir on high flame. Add soya sauce, tomato ketchup and a pinch of sugar. Toss and then add a ½cup water. Drop in paneer, a pinch of salt and a dash of vinegar. Add spring onion chopped. Dissolve cornflour in 2 tbsp of water and add it to the pan. This will thicken the sauce and it will coat paneer. Toss and once it thickens remove and serve.