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Heat 1/2 tbsp of the oil in a large skillet over medium-high heat until shimmering. Add the paneer cubes in a single layer and cook, undisturbed, for 2–3 minutes until the undersides are golden. Flip and cook for another 1–2 minutes until golden on the second side. Transfer to a cutting board and roughly crumble into smaller pieces.
Return the skillet to medium heat and add the remaining 1/2 tbsp oil. Add the onion and bell pepper and cook, stirring occasionally, until softened and the onion is translucent, about 5–6 minutes.
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