Wash and dry mushrooms. Snip off the stems that are hard. Drain the baby corn (if using canned) and dry on paper towels.
Transfer to a bowl and add soy sauce, chili sauce, salt, pepper and sesame seeds. Mix well.
Add corn starch and coat the baby corn and mushrooms well.
Preheat the air fryer to 400 F for 3-4 minutes. Arrange the baby corn and mushrooms in a single layer and air fry for 8 minutes, flipping once in between.
Once the mushroom and baby corn are cooked and the coating does not look raw, remove and set aside.
In a bowl mix together corn starch, soy sauce and vinegar. Add ½ cup water and make a homogenous mixture. Set aside.
Heat oil in a pan. Once hot, add the peppers and sauté for a couple of minutes.
Add the minced garlic and green chili. Cook till the raw flavor of garlic vanishes and it becomes slightly crisp.
Add the prepared sauce and let it thicken on medium flame. Keep stirring to avoid lumps.
Once the sauce is glossy and thickens, add the air fried baby corn and mushrooms. Mix well.
Cook till everything is coated well.
Top with green onions and serve immediately with some noodles or rice on the side.