In a large bowl, combine fresh dace fish paste, finely diced water chestnuts, finely chopped scallions, salt, white pepper, sugar, and cornstarch. Mix well by hand or with chopsticks, stirring in one direction until the mixture is cohesive and slightly springy.
Add cooking oil to the fish paste mixture and mix well. This helps to make the patties smooth and prevents sticking.
Wet your hands slightly with water or oil to prevent sticking. Take spoonfuls of the fish paste and flatten them into round or oval patties.
Heat cooking oil in a non-stick pan over medium heat. Carefully place the fish patties into the hot oil, ensuring not to overcrowd the pan.
Pan-fry for 3-5 minutes on each side until golden brown and cooked through. Adjust heat as needed to prevent burning.
Remove patties from the pan and drain excess oil on paper towels. Serve hot, optionally with a dipping sauce like sweet chili sauce or soy sauce.
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