Cut paneer into one and a half inch squares with half inch thickness. Mix together all the ingredients of the marinade and marinate the paneer cubes in it for about fifteen minutes.
Heat oil on a tawa, place the paneer cubes and shallow fry till golden and crisp on the surface. Drain on absorbent paper.
Toss the capsicums pieces in the remaining marinade and sauté them in the remaining oil on the tawa for two to three minutes.
Place a capsicum piece on each paneer cube and pierce with a toothpick. Sprinkle chaat masala and serve hot.