Heat 1.5 tablespoons of oil in a pan and add one star-anise(optional), ½ teaspoon of shah jeera(black cumin seeds) 2 cloves, hing(asafoetida), and ¼ teaspoon of turmeric powder. Fry them for few seconds till you get a nice aroma.
Next, add diced onions and a little salt to help the onions cook faster. Saute the onions on medium-high heat until they turn golden brown.
Then reduce the heat to medium and add 1.5 teaspoons of ginger garlic paste, ¼ teaspoon of coriander powder, and ¼ teaspoon of cumin powder and mix well. Saute the spices for a minute.
Next, add diced tomatoes and a little salt and cook covered until the tomatoes are completely cooked and oil is separating to the sides. Don't forget to stir in between for every couple of minutes to avoid burning.
Then add the soaked paneer pieces to the onion-tomato mixture and cook for 3 to 4 minutes. This will help the paneer pieces to soak up the flavor and get moister.
Now add the blended spinach puree, salt to taste, ¼ teaspoon of red chilli powder, and ¼ teaspoon of garam masala powder and mix well.
Cook uncovered for 5 minutes while stirring in between. Check the taste and adjust the seasonings. Do not cook for more than 5 minutes after adding spinach puree to preserve the nutrients and beautiful green color.
Switch off the heat and serve hot with roti, naan, chapati, paratha, or rice.
Note: If not serving immediately, Please cover the dish with a tight lid to preserve the beautiful green color. If you don't cover with a tight lid, then the Palak paneer will slightly darken but the taste will still be the same and awesome.