Finely chop the green onion. Divide the white/light green ones and the dark green ones.
Discard the seeds of the red bell pepper and wax pepper. Dice in bite size cubes.
Slice the onion in half and dice it into bite size cubes.
Slit the green chilies in half.
Dice the paneer block into bite size cubes.
In a mixing bowl, add the paneer cubes along with the 1 teaspoon salt, chili powder and corn flour. Toss it around and do not add any water.
Place a heavy bottom, flat non-stick skillet at medium heat and pout ½ cup of oil. Depending on the size of the pan, you will need more or less oil to shallow fry the paneer cubes. Layer the paneer cubes on the hot pan and fry the paneer for 1 to 2 minutes on each side or until it’s golden brown. Take it off the pan into a separate bowl.
Don’t discard the remaining corn flour mixture in the bowl. Stir ½ cup of water into it and keep aside to be used later.
You can continue cooking using the same pan or use a different pan (preferably a wok). Place the pan/wok at medium high heat and pour 2 tablespoons of oil. Once the oil heats up, drop the garlic ginger and toss. Add the onion, remaining salt, sugar and toss it again.
In 2 minutes, add the red bell pepper, wax pepper and green chili. Toss for 3 minutes. Then, add the white/light green portion of green onion and toss for 2 minutes.
Add the ketchup, soya sauce and drop the fried paneer cubes. Toss it around.
Pour the corn flour-water mixture that was kept aside, plus ½ cup of water. Mix it around and cook for 2 minutes. It will turn glossy and thick.
Garnish with the dark portion of green onion and serve immediately.