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aerial shot of chilli mushroom in a white ceramic platter with a silver spoon
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5 from 6 votes

Chilli Mushroom Recipe

Chilli Mushroom is an Indian-Chinese vegetarian gravy made with button mushrooms, colorful peppers covered in a sweet and spicy sauce. Learn how to make restaurant style mushroom chilli in a few simple steps.
Prep Time15 mins
Cook Time20 mins
Total Time35 mins
Course: Main Course
Cuisine: Indian
Servings: 2
Calories: 619kcal
Author: Hina Gujral



Ingredients For Crispy Mushroom:

  • 250 gram button mushrooms
  • ¼ cup corn starch (corn flour)
  • 2 tablespoon all-purpose flour (maida)
  • Salt to taste
  • 1 teaspoon red chilli powder
  • ¼ Cup oil for shallow frying

Ingredients For Homemade Chilli Sauce:

  • 4 whole dry red chill (sabut lal mirch)
  • 2 tablespoon tomato sauce or ketchup
  • ¼ cup chopped onion
  • 1 tablespoon chopped ginger
  • 1 tablespoon chopped garlic
  • ¼ cup hot water

Ingredients For Gravy:

  • 2 tablespoon cooking oil
  • 1 tablespoon chopped garlic
  • 1 tablespoon chopped ginger
  • 2 whole Kashmiri red chili
  • 1 cup diced onion
  • ½ cup diced capsicum
  • ½ cup diced red bell pepper
  • ½ cup diced yellow bell pepper
  • 1 tablespoon white vinegar
  • 1 tablespoon soy sauce
  • 1 Cup water
  • 2 tablespoon corn flour (corn starch)

Ingredients For Topping:

  • 1 tablespoon spring onion
  • 1 tablespoon fried cashews


Crispy Fried Mushroom:

  • Cut button mushroom in quarters. Coat them with flour, starch, spices, and a tablespoon of water.
    mushroom chilli cooking steps
  • Heat oil in a wok for frying the mushrooms. Once oil is hot enough, fry mushrooms till crisp and golden from both the sides. Because of moisture, mushroom takes lot of time to become crisp.
    mushroom chilli cooking steps
  • Transfer crispy fried mushroom in a colander. Set them aside.

Make Homemade Chilli Sauce:

  • Soak dry red chili in hot water. Cover and set aside for 5 – 6 minutes for chilies to soften a bit. Later, blend the chilies along with soaked water, ginger, garlic, onion, and tomato ketchup to a smooth sauce. Set aside the chilli sauce.

Make Corn Starch Paste:

  • For thickening, the sauce, combine 2 tablespoons of corn starch with ¼ cup of water. Make a smooth paste. Keep it aside.

Prepare Chilli Gravy/Sauce:

  • Heat cooking oil in a wok. Add chopped ginger, garlic, whole red chilli, and diced onion. Stir fry over high heat for a minute to release the aroma.
    mushroom chilli cooking steps
  • Next, add white vinegar, soy sauce, and the homemade chilli sauce. Stir to combine. Simmer the sauce for a minute. Taste and season with salt according to your preference.
  • Add diced peppers, and corn starch paste. Stir the gravy continuously to avoid any lump formation.
    mushroom chilli cooking steps
  • Once chilli gravy starts thickening, add crispy mushroom. Mix nicely. Turn off the heat.
  • Garnish chilli mushroom with fried cashews and spring onion.
  • Serve chilli mushroom immediatley with fried rice.


  • It is best to cut mushrooms into chunks or quarters rather than finely chopped.
  • Do not use too much water to prepare marinade coating for mushrooms. 
  • Homemade chili sauce is spicy in taste. You can add it in less quantity in the gravy and store the remaining sauce in the fridge to use later. 
  • To make dry chili mushroom for snacks, do not add any water in the gravy. 


Calories: 619kcal | Carbohydrates: 53g | Protein: 9g | Fat: 43g | Saturated Fat: 3g | Sodium: 624mg | Potassium: 854mg | Fiber: 6g | Sugar: 10g | Vitamin A: 1770IU | Vitamin C: 163mg | Calcium: 33mg | Iron: 2mg