We demonstrate a nonlinear optical channel waveguide made of E7 nematic liquid crystal infiltrated in a silica on silicon groove. Near infrared light at the wavelength of 1560 nm fiber coupled to the core of the liquid crystal waveguide was optically modulated by an optical beam with power below 25 mW by exploiting the optical Freedericks transition. By modeling the optical molecular reorientation in the nematic liquid crystal confined in a waveguiding geometry we are able to reproduce the experimental results.