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Step 1
Cut the paneer into small pieces. Usually, I slice the block of paneer into about 1/3-inch slices. Then, I take each slice of paneer and cut it into smaller pieces.
Step 2
Heat 1 1/2 tablespoons of ghee or oil in a large skillet over medium heat. Add half of the paneer pieces and pan fry until golden brown, about 2 to 3 minutes. Sprinkle a small pinch of salt over the paneer before flipping them over. Then, pan fry the other side until golden brown, about 2 minutes. Transfer the fried paneer to a plate.
Step 3
Add another 1 1/2 tablespoons of ghee or oil to the skillet and repeat the pan frying step above. I’ve found that the second batch usually takes less time because the pan is quite hot at this point. Transfer the remaining fried paneer to the plate.
Step 4
Fill a large saucepan with about 3 quarts of water and bring it to boil. Add the baby spinach to the boiling water. If all of it doesn’t fit into the saucepan, add half of the spinach first. Once the spinach starts wilting, add the remaining spinach. Cook for about a minute, until all the spinach wilts.
Step 5
Use a spider spatula to remove the spinach from the saucepan or drain the spinach into a colander.
Step 6
Transfer the spinach to a food processor. You don’t need to squeeze the excess liquid from the spinach beforehand. Blend the spinach for about 10 seconds. Scrape down the sides of the bowl and blend again for another 10 seconds. Leave the chopped spinach in the food processor (see note 3).
Step 7
Heat a large skillet with 2 tablespoons of ghee or safflower oil over medium-high heat. Add the diced onions and cook them for about 3 minutes, until they start to soften. Next, add the minced ginger, garlic, diced serrano pepper, and cumin seeds and cook for 30 seconds. Then, add the garam masala, turmeric, and cayenne pepper. Stir to coat the onions with the dried spices.
Step 8
Transfer the chopped spinach into the skillet. Next, add the heavy cream and salt. Cover the skillet with a lid and reduce the heat to medium. Let the spinach sauce simmer for about 5 minutes.
Step 9
Uncover the lid and add the pan-fried paneer to the spinach sauce. Turn off the heat. Serve the palak paneer with basmati rice.