I think the answer to this problem is take-home coding tests. They do the best job of simulating actual working conditions and minimising associated stress and anxiety. I've had this confirmed by multiple candidates I've used this approach with. I'm actually launching a product to streamline the process if anyone is interested. https://takehome.io
Me: Are you comfortable solving a small programming problem?
If the answer is yes: Here's a simple algorithmic problem you can solve in under 20-30 LOC. You can choose any language you wish, including psedocode. You can choose to write on paper or on this PC.
If the candidate seems nervous, I leave the room for a few minutes.
It can't find you the best developers. But it certainly helps weed out candidates who talk up a storm but can't actually code.