Boil 3 cups of water. Add 1/4 tsp salt and stir. Add the spinach to the hot water and close with a lid. Let the spinach sit in the water for 2-3 minutes.
Strain the spinach. Keep some stock aside.
Add the spinach to ice cold water for a 1-2 minutes. This lets the spinach keep its color.
Drain water and add to blender. Add the chili, ginger and garlic for the puree.
Blend to a smooth paste. No need to add water.
Curry
Heat butter in a pan.
Add first spice and let them splutter.
Add the onion. Saute till the onion becomes golden.
Add the garlic and cook until raw aroma is gone.
Add the tomato. Saute until they soften and fat releases from the sides.
Add second spice and stir well.
Add the Palak puree and stir well. Add 1/2 cup of the reserved spinach stock.
Add the third spice and stir.
Add the Paneer. Stir gently and on low for 1-2 minutes.
Add fourth spice and cream. Stir and remove from heat.