Heat oil in a non stick wok. Halve onions and then cut into thick slices and separate the layers.
Break red chillies into 4 pieces and remove seeds and add to the oil in the wok. Add half the garlic and sauté till fragrant. Add onions and paneer and toss on high heat.
Add ¼ cup water, red chilli paste and red chilli sauce and toss.Add ½ cup stock and mix. Cut green capsicum into 1 inch pieces and mix. Add soy sauce, salt, pepper powder and mix.
Add cornflour mixture and mix well and cook till it thickens. Add capsicum, remaining garlic and toss again. Add vinegar and mix well. Serve hot.