Cut paneer into 1 inch squares, cubes or rectangles and into ½ inch thickness.
Take onion, cut into halves and take out each layer one by one.
Dice the bell pepper into square shape.
How to make hung curd:
To make hung curd put the curd in a strainer and keep a bowl under the strainer to collect the liquid. Keep yogurt with strainer for an hour so that all liquid separates from the curd. After an hour you get a thick cheese like curd called hung curd.
How to make paneer tikka:
First take thick yogurt/ hung curd in a bowl and add all the spices (Kashmiri red chilly powder, turmeric powder, black pepper powder, garam masala, salt to taste, ginger garlic paste, lemon juice, kasuri methi, chaat masala) and whisk it well until smooth. Marinade is ready
Add paneer slices all the diced vegetables (capsicum and onion) to the prepared marinade and mix it very gently with your hands or spoon so that paneer slices does not get break. Coat the paneer and veggies evenly with the marinade.
Cover the bowl with plate or plastic wrap, keep it in a fridge and let the paneer, chopped veggies marinade for 45 minutes to 2 hrs. If you have much time, then keep it in a refrigerator for overnite.
Take a skewer or tooth pick and arrange alternately paneer cubes, red bell pepper, yellow bell pepper, onion and then green bell pepper. Arrange paneer and chopped veggies as per your choice on skewer or small wooden tooth pick.
Heat oil and butter in a non-stick pan, once the oil becomes medium hot, put skewered paneer and veggies and shallow fry it on medium flame.
When one side gets light brown, gently turn the skewer or tooth pick and cook from other side too. This way cooks each side of paneer tikka by turning the skewers/tooth pick all around. It takes around 6-7 minutes
Second method of making paneer tikka: You can also place the marinade veggies and paneer separately on greased non-stick pan and cook on medium flame till it turns golden brown from both the sides. Take them out on an absorbent paper to remove excess oil.
Remove them to a plate and arrange the fried paneer and veggies onto a skewer/ tooth pick. You can aslo serve paneer tikka without skewering the veggies and paneer.
Arrange them in a serving plate Sprinkle some chaat masala, lemon juice and serve the paneer tikka hot or warm with thinly sliced Onion lemon salad and mint yogurt chutney.
You can also add deseeded tomato, baby corn to make paneer tikka. Kashmiri red chilly powder is not spicy so you can also add more Kashmiri red chilly powder for nice red colour . Leave the paneer and veggies for 3 hrs or overnite for marination as all the flavors get blended well and gives nice taste.