Take refined flour in a bowl. Add salt, yogurt, soda bicarbonate, sugar and milk and knead into a soft dough.
Cover with a damp cloth and rest for an hour. Preheat oven to the maximum temperature. Make pedas of the dough and rest for five minutes.
Take paneer in a bowl, add salt, half teaspoon red chilli powder and chaat masala and mix well. Roll each dough peda to a small puri, place a portion of the paneer mixture and roll into a ball again.
Rest the stuffed balls for five minutes. Pat each ball into a six inch round kulcha and place on a baking tray.
Rub a little water on the surface and sprinkle some red chilli powder. Bake in the preheated oven for five to seven minutes.
Serve hot with a dollop of butter on each kulcha.