Blanch Spinach: Bring a pot of water to a boil. Add fresh spinach leaves and blanch for 2 minutes until wilted. Transfer the spinach to a bowl of ice water to stop the cooking process. Drain the spinach, squeeze out excess water, and blend into a smooth puree.
Fry Paneer: Cut paneer into cubes. Heat oil or ghee in a pan over medium heat. Fry the paneer cubes until golden brown on all sides. Remove from the pan and set aside.
Prepare Base: In the same pan, add more oil if needed. Sauté finely chopped onions until translucent. Add minced garlic, ginger, and chopped green chilies. Cook until aromatic.
Add Tomatoes and Spices: Add diced tomatoes to the pan and cook until they soften. Stir in ground spices such as cumin, coriander, turmeric, and garam masala. Cook for a couple of minutes until the spices are fragrant.
Combine Spinach and Sauce: Pour the spinach puree into the pan with the onion-tomato-spice mixture. Mix well and let it simmer for a few minutes to combine flavors. Adjust consistency with water if needed.
Add Paneer: Gently add the fried paneer cubes into the spinach sauce. Stir to coat the paneer with the sauce. Allow it to simmer for a few more minutes to let the flavors meld together.
Final Touches: Optionally, sprinkle some kasuri methi (dried fenugreek leaves) over the dish for added flavor. Adjust seasoning with salt if necessary.
Serve: Palak Paneer is now ready to be served! Garnish with a dollop of fresh cream or yogurt if desired. Enjoy hot with rice or bread.