First, we need to blanch the spinach. Boil Water (4 cup), add Granulated Sugar (1 teaspoon), and then add Fresh Spinach (10 ounce) to it. Submerge it in boiling water and turn off the flame. Let it sit for 3 minutes. No need to cover it.
Strain the water after 3 minutes and immediately give it an ice bath. Add Ice (2 cup) cubes to a bowl and add the blanched spinach to it. Let it sit for 5 minutes.
Transfer it to a blender and blitz it to make a smooth creamy puree. Keep it aside for now.
In a pan add Onion (1), Jalapeño Pepper (1), and Cashew Nuts (1/4 cup) along with Water (1 cup). Bring it to a boil, reduce the flame and cook for 6-7 minutes.
Do not strain. Allow it to cool down completely before grinding it to a smooth paste, in a blender. Keep it aside for now.
If using frozen paneer, thaw the Paneer (7 ounce) completely and then cut the paneer in any desired shape.
Heat a grill pan and grill the paneer slices in little Oil (2 tablespoon) till it turns light golden on both sides. Set the grilled paneer aside for now.
Add Dried Fenugreek Leaves (2 tablespoon) in a pan. Once it's hot enough, add Garlic (5 clove), Ginger Paste (1 tablespoon), Cinnamon Stick (1), Oil (1/2 tablespoon), and Bay Leaf (2). Fry for 2-3 minutes or till the garlic turns golden.
Next, add the onion paste and fry it for 2 minutes. Now add the spinach puree, Garam Masala (1 teaspoon), and Salt (to taste). Add water if you need to adjust the consistency. Mix it all together and cook till it comes to a boil. Take it off the flame.
Add the grilled paneer just before serving. This palak recipe tastes best with any flatbread or steamed rice.