Get all the ingredients ready. chop the ends of the spinach leaf stem. Rinse in running water.
I prefer blanching the palak leaves. Boil 2 cups of water in a wide pan, add salt into it. When it starts boiling, add spinach leaves to it. Boil for 2 mins and remove the spinach from the hot water and rinse with cold running water.
When the spinach is ready, Chop the green chilies, ginger and garlic cloves. Now add all four ingredients to mixer jar and make a puree out of it. No need to add water while making puree.Keep the puree aside.
Now heat a wide pan and add butter / oil / ghee to it. Once the butter melts, add cumin seeds into it.When the cumin seeds splutters, add a bay leaf to it. Saute it for a min,
Then add finely chopped onions into it. Saute for 2 mins.Then add sliced tomatoes into it and saute everything well.
Once the tomato starts blending, add salt, turmeric powder, chili powder and garam masala powder. Mix everything well and cook for few mins.
Now add the spinach / palak puree into the mixture. Stir well and add 1/2 cup of water to it.
After 2 mins, add the paneer cubes / tofu cubes to that mixture and stir well. Also add 1 tbsp of cream to make the gravy thicker.
Stir gently until everything blends well. Once it is done, transfer the gravy to a container, add the cream / cashew paste on top of it for garnishing.