Marinate the Paneer: In a bowl, combine paneer cubes with garam masala, black pepper, yoghurt, and salt. Mix gently to ensure even coating. Set aside for 10 minutes.
Prepare the Batter: In a separate bowl, mix together cornflour, all-purpose flour, garam masala, and salt. Gradually add water to form a thick, smooth batter.
Prepare the Coating: Using your manual blender, blend up some cornflakes, chilli flakes, turmeric and a pinch of salt.
Coat the Paneer: Dip each marinated paneer cube into the batter, then roll in the cornflake mixture, pressing lightly to adhere.
Fry the Paneer Popcorn: Heat oil in a deep frying pan. Once the oil is hot, carefully add the coated paneer in batches. Fry until golden brown and crispy.
Use a slotted spoon to remove the paneer popcorn and drain on paper towels. Serve hot with preferred dipping sauce.