Bring a large pot of salted water to a boil. Add spinach leaves and the green chili. Blanch for just 1–2 minutes until the spinach wilts and brightens in color. Quickly transfer to a bowl of ice water to stop the cooking process. Drain and blend into a smooth purée with about ½ cup water. Set aside.

Heat 1 tablespoon of ghee in a non-stick pan. Add the paneer cubes and fry until they turn golden on at least two sides. Remove and set aside. If you prefer a softer texture, soak the fried paneer in warm water for 10 minutes before adding to the curry.

In the same pan, add the remaining ghee and heat it. Toss in the cumin seeds. Once they sizzle, add the chopped onions and sauté until golden brown. Add the ginger-garlic paste and cook until the raw smell disappears.

Stir in the chopped or puréed tomatoes. Let them cook down for 5–6 minutes until the mixture becomes thick and glossy. Add turmeric, coriander powder, red chili powder, and salt. Cook until the oil begins to separate from the masala.

Pour in the prepared spinach purée and stir well. Let it simmer for 5–7 minutes on medium heat. The green should remain vibrant, so don’t overcook.

Add fresh cream or malai and stir. This step transforms your spinach paneer into a rich curry closer in texture to the indulgence found in paneer curry recipes like shahi paneer. Add crushed kasuri methi, lemon juice, and sugar (if using). Let everything blend beautifully.

Gently fold in the fried paneer cubes and simmer for 2–3 minutes. Finish with a dab of butter for that glossy restaurant-style touch, if desired.

Garnish with a swirl of cream or a few fried paneer cubes on top. Serve immediately with rice, roti, or naan.