Heat a large nonstick pan on medium heat. Add two tablespoon of water and then immediately add spinach leaves. Cover the pan with a lid and steam the spinach for 2-3 min.
Then remove the wilted spinach into a blender jar. Keep it aside.
Now in the same skillet heat 1 tsp cooking oil. Add garlic cloves, ginger pieces, and chopped onion. Cook for 2-3 min or until light golden brown.
Add tomato pieces, crushed cashew nuts and cook for 3-4 min or until the tomato softens. Once done take out this mixture and add it to the wilted spinach in the blender jar. Also, add fresh cilantro leaves, water and blend everything to make a puree.
Clean the same skillet (see the note) and heat the remaining 1 tsp oil on low-medium heat.
Add turmeric powder and chili powder and fry it for 10-15 seconds. Immediately add spinach puree and mix well.
Now add coriander powder, cumin powder, garam masala and salt to taste. Mix well, cover and cook the mixture for five minutes on low heat.
Add paneer cubes and turn the heat off. Cover and let it sit for 5 more min. Serve warm.