Make a batter for dipping the paneer by combining the flour, salt, red chilli powder, and water. The batter should be runny, but not too thick or thin.
Dip the paneer cubes into the batter, and fry on medium heat until golden brown on all sides. Frying the paneer will take about 2-3 minutes on each side.
Transfer the fried paneer on kitchen paper to drain the excess oil. Set aside.
Making the Manchurian sauce:
Heat oil in a wok, and add the garlic and ginger and fry for about 30 seconds.
Then add the green onions and fry for another 30 seconds.
Add all sauce ingredients except the cornstarch and water.
Cook for a minute or two until the sauce starts to thicken and bubble.
Dissolve the cornstarch in the water and add it to the sauce and keep stirring until it becomes thick.
Toss in the fried paneer and mix so that the Manchurian sauce coats the fried paneer evenly.
Serve immediately with garlic fried rice.