Mix refined flour, baking soda, baking powder, salt and sugar in a bowl and mix well.
Add yogurt and enough water and knead into a soft dough. Apply a little oil, cover with a damp cloth and rest for ½ hour.
Heat sufficient olive oil in a kadai. Divide the dough into lemon sized portions with greased hands and roll into balls. Place paneer in a bowl, add salt and red chilli powder and mix well.
Spread some of the dough balls slightly, place a bit of paneer in the centre, gather the edges and seal. The rest of the balls can be made into bhaturas without the stuffing.
Spread the stuffed and the unstuffed balls into small puris, slide into hot oil and deep fry on high heat till lightly coloured.
Drain on absorbent paper. Serve hot with kale chholay .